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The Formation of Managerial Networks of Foreign Firms in China: The Effects of Strategic Orientations

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  • Julie Li

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    Abstract

    This study investigates how firms' strategic orientations (i.e., market, technology, and entrepreneurship orientations) influence the formation of two types of managerial networks (top managers' ties with the business community and with government officials), as well as the impact of managerial networking on firm performance. On the basis of a survey of 181 foreign-invested enterprises (FIEs) operating in China, we find that a market orientation fosters both types of network building. Technology-oriented firms are more likely to cultivate managerial ties with top managers at other firms but less likely to establish networks with government officials. In contrast, entrepreneurial firms tend to develop vertical networks with government officials but have no intention to deepen their horizontal networks with other firms. Competitive intensity moderates the relationships between strategic orientations and managerial ties. Finally, managerial networking has a positive impact on FIE performance. Copyright Springer Science + Business Media, Inc. 2005

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    Bibliographic Info

    Article provided by Springer in its journal Asia Pacific Journal of Management.

    Volume (Year): 22 (2005)
    Issue (Month): 4 (December)
    Pages: 423-443

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    Handle: RePEc:kap:asiapa:v:22:y:2005:i:4:p:423-443

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    Postal: P.O. Box 17, 3300 AA Dordrecht, the Netherlands
    Web page: http://www.springerlink.com/link.asp?id=106589

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    Keywords: managerial network; strategic orientation; FIEs; China;

    References

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    1. Zhou, Kevin Zheng & Gao, Gerald Yong & Yang, Zhilin & Zhou, Nan, 2005. "Developing strategic orientation in China: antecedents and consequences of market and innovation orientations," Journal of Business Research, Elsevier, vol. 58(8), pages 1049-1058, August.
    2. Aimin Yan, 2001. "Antecedents and Effects of Parent Control in International Joint Ventures," Journal of Management Studies, Wiley Blackwell, vol. 38(3), pages 393-416, 05.
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    Cited by:
    1. Yuanqiong He & Zhilong Tian & Yun Chen, 2007. "Performance implications of nonmarket strategy in China," Asia Pacific Journal of Management, Springer, vol. 24(2), pages 151-169, June.
    2. Shanxing Gao & Kai Xu & Jianjun Yang, 2008. "Managerial ties, absorptive capacity, and innovation," Asia Pacific Journal of Management, Springer, vol. 25(3), pages 395-412, September.
    3. Shun-Jen Hsueh & Hsin-Hong Kang, 2007. "Cointegration relationships of strategy variables among firms within strategic groups," Asia Pacific Journal of Management, Springer, vol. 24(1), pages 61-73, March.
    4. Boso, Nathaniel & Story, Vicky M. & Cadogan, John W., 2013. "Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy," Journal of Business Venturing, Elsevier, vol. 28(6), pages 708-727.
    5. Lau, Chung-Ming & Yiu, Daphne W. & Yeung, Ping-Kwong & Lu, Yuan, 2008. "Strategic orientation of high-technology firms in a transitional economy," Journal of Business Research, Elsevier, vol. 61(7), pages 765-777, July.
    6. Hsi-Mei Chung, 2006. "Managerial ties, control and deregulation: An investigation of business groups entering the deregulated banking industry in Taiwan," Asia Pacific Journal of Management, Springer, vol. 23(4), pages 505-520, December.
    7. Kwanghui Lim & Brian Cu, 2012. "The effects of social networks and contractual characteristics on the relationship between venture capitalists and entrepreneurs," Asia Pacific Journal of Management, Springer, vol. 29(3), pages 573-596, September.
    8. Li, Julie Juan & Zhou, Kevin Zheng, 2010. "How foreign firms achieve competitive advantage in the Chinese emerging economy: Managerial ties and market orientation," Journal of Business Research, Elsevier, vol. 63(8), pages 856-862, August.
    9. Li, Shenxue & Scullion, Hugh, 2010. "Developing the local competence of expatriate managers for emerging markets: A knowledge-based approach," Journal of World Business, Elsevier, vol. 45(2), pages 190-196, April.
    10. Peter Li, 2007. "Social tie, social capital, and social behavior: Toward an integrative model of informal exchange," Asia Pacific Journal of Management, Springer, vol. 24(2), pages 227-246, June.
    11. Claudio Giachetti, 2013. "Competitive Aggressiveness and Performance of Developed Country-Based Firms in the Chinese Emerging Economy: The Moderating Effect of Institutional Voids and Entry Mode Degree of Control," Working Papers 1, Department of Management, Università Ca' Foscari Venezia.
    12. Kevin Zhou & Caroline Li, 2007. "How does strategic orientation matter in Chinese firms?," Asia Pacific Journal of Management, Springer, vol. 24(4), pages 447-466, December.
    13. Jun Lin & Steven Si, 2010. "Can guanxi be a problem? Contexts, ties, and some unfavorable consequences of social capital in China," Asia Pacific Journal of Management, Springer, vol. 27(3), pages 561-581, September.
    14. Diego Quer & Enrique Claver & Laura Rienda, 2007. "Business and management in China: A review of empirical research in leading international journals," Asia Pacific Journal of Management, Springer, vol. 24(3), pages 359-384, September.
    15. Zhou, Kevin Zheng & Brown, James R. & Dev, Chekitan S., 2009. "Market orientation, competitive advantage, and performance: A demand-based perspective," Journal of Business Research, Elsevier, vol. 62(11), pages 1063-1070, November.
    16. Raymond Loi & Hang-Yue Ngo, 2010. "Mobility norms, risk aversion, and career satisfaction of Chinese employees," Asia Pacific Journal of Management, Springer, vol. 27(2), pages 237-255, June.
    17. Wang, Kung-Jeng & Lestari, Yuliani Dwi, 2013. "Firm competencies on market entry success: Evidence from a high-tech industry in an emerging market," Journal of Business Research, Elsevier, vol. 66(12), pages 2444-2450.
    18. Li, Julie Juan, 2008. "How to retain local senior managers in international joint ventures: The effects of alliance relationship characteristics," Journal of Business Research, Elsevier, vol. 61(9), pages 986-994, September.
    19. Gang Wang & Xu Jiang & Chang-Hong Yuan & Ya-Qun Yi, 2013. "Managerial ties and firm performance in an emerging economy: Tests of the mediating and moderating effects," Asia Pacific Journal of Management, Springer, vol. 30(2), pages 537-559, June.

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