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Institutional Transformation and Changing Networking Patterns in China

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  • Zhang, Jianjun
  • Zhao, Wei
  • Zhang, Yanlong

Abstract

Drawing insights from the institutional embeddedness perspective, this article explores the changing patterns and significance of two types of strategic networking along with the institutional transformation in China. Using two-wave survey data on Chinese private firms, we find that after the state relaxed its control of resources the importance of networking with the state tends to decline, while ties with market actors become increasingly important. Determinants of network investment have shifted from managers’ perceived importance of different types of network ties to a firm's immediate institutional environment. Finally, the impact of networking on firm growth has also altered over time. These findings advance our understanding of the crucial role of the institutional environment in shaping firms’ networking strategies and have important theoretical and practical implications.

Suggested Citation

  • Zhang, Jianjun & Zhao, Wei & Zhang, Yanlong, 2016. "Institutional Transformation and Changing Networking Patterns in China," Management and Organization Review, Cambridge University Press, vol. 12(2), pages 303-331, June.
  • Handle: RePEc:cup:maorev:v:12:y:2016:i:02:p:303-331_00
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    Cited by:

    1. Alexandre Oliveira & Fernando Carvalho & Nuno Rosa Reis, 2022. "Institutions and Firms’ Performance: A Bibliometric Analysis and Future Research Avenues," Publications, MDPI, vol. 10(1), pages 1-20, February.
    2. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 2021. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 20(1), pages 32-77, February.
    3. Hongjuan Zhang & Rong Han & Liang Wang & Runhui Lin, 0. "Social capital in China: a systematic literature review," Asian Business & Management, Palgrave Macmillan, vol. 0, pages 1-46.

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