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Combining Commerce and Culture

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  • Krug, B.
  • Belschak, F.D.
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    Abstract

    It seldom happens that new firms, new industries, and new business systems need to be developed simultaneously. This, however, is the situation in transition economies such as China. Irrespective of product and technology used, incentives and governance structures need to be formulated that give business endeavours an organisational form. The survivability of firms depends further on the ability to start and maintain long-term business relations between contracting parties, while only a broad consensus within the community of entrepreneurs and firms on the procedures that co-ordinate business relations and sanctions transgression promises a decline in transaction costs sufficiently enough to trigger off the quick expansion of markets.

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    File URL: http://repub.eur.nl/pub/150/erimrs20020121154930.pdf
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    Bibliographic Info

    Paper provided by Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam in its series ERIM Report Series Research in Management with number ERS-2001-84-ORG.

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    Date of creation: 21 Jan 2001
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    Handle: RePEc:ems:eureri:150

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    Phone: 31-10-408 1182
    Fax: 31-10-408 9020
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    Web page: http://www.erim.eur.nl/
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    Related research

    Keywords: China; business networking; economic development; government; transition;

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    References

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    1. Yingyi Qian, 2000. "The Process of China's Market Transition (1978-1998): The Evolutionary, Historical, and Comparative Perspectives," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(1), pages 151-, March.
    2. Nooteboom, B., 1996. "Trust, opportunism and governance: A process and control model," Open Access publications from Tilburg University urn:nbn:nl:ui:12-376064, Tilburg University.
    3. Victor Nee, 2000. "The Role of the State in Making a Market Economy," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 156(1), pages 64-, March.
    4. Rozelle, Scott & Li, Guo, 1998. "Village Leaders and Land-Rights Formation in China," American Economic Review, American Economic Association, vol. 88(2), pages 433-38, May.
    5. W-C H Yeung, 1994. "Hong Kong firms in the ASEAN region: transnational corporations and foreign direct investment," Environment and Planning A, Pion Ltd, London, vol. 26(12), pages 1931-1956, December.
    6. Barbara Krug, 1999. "On Custom in Economics: The Case of Humanism and Trade Regimes," Journal of Institutional and Theoretical Economics (JITE), Mohr Siebeck, Tübingen, vol. 155(3), pages 405-, September.
    7. Greif, Avner, 1993. "Contract Enforceability and Economic Institutions in Early Trade: the Maghribi Traders' Coalition," American Economic Review, American Economic Association, vol. 83(3), pages 525-48, June.
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