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Resource and Risk Trade-offs in Guanxi -based IJVs in China

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  • Noushi Rahman

Abstract

Many western firms are trying to conduct business in the People's Republic of China, and one of the prevalent approaches has been through the formation of international joint ventures (IJVs). While extant literature suggests that firms should focus on developing guanxi (that is, a form of political economic connection) to succeed in these IJVs, it is argued in this article that the effects of guanxi are mixed. Using resource contribution and risk-based perspectives of IJVs, eight propositions are offered that link guanxi and relative risks when IJVs are formed to access different kinds of resources.

Suggested Citation

  • Noushi Rahman, 2008. "Resource and Risk Trade-offs in Guanxi -based IJVs in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 14(2), pages 233-251, April.
  • Handle: RePEc:taf:apbizr:v:14:y:2008:i:2:p:233-251
    DOI: 10.1080/13602380701398431
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    Cited by:

    1. Young Kyun Chang & Won-Yong Oh & Jee Hyun Park & Myoung Gyun Jang, 2017. "Exploring the Relationship Between Board Characteristics and CSR: Empirical Evidence from Korea," Journal of Business Ethics, Springer, vol. 140(2), pages 225-242, January.
    2. Zejun Ma & Hira Salah ud din Khan & Muhammad Salman Chughtai & Mingxing Li & Bailin Ge & Syed Usman Qadri, 2023. "A Review of Supervisor–Subordinate Guanxi: Current Trends and Future Research," Sustainability, MDPI, vol. 15(1), pages 1-15, January.

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