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How Network Strategies and Institutional Transitions Evolve in Asia

  • Mike Peng

    ()

  • Jessie Zhou

    ()

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    This article contributes to the literature on network strategies and institutional transitions in emerging economies in Asia by identifying a realistic, intermediate phase between the early and late phases of institutional transitions suggested by Peng (2003). Focusing on the intermediate phase, we advance two arguments based on network strength and network content. First, in terms of network strength, we leverage earlier insights that networks can be classified as strong ties and weak ties. Consequently, we suggest that as institutional transitions unfold, strong-tie-based networks, instead of being phased out, are being transformed into weak-ties-based networks. Second, from a network content standpoint, we argue that the various scale and scope of institutional transitions shape the content of different networks which focus on business-to-government (B2G) ties and business-to-business (B2B) relationships. Our propositions delineate how different transitions of political and legal institutions affect the evolution of B2G and B2B networks. Overall, we suggest that networks not only differ in strength but also in content, and that their evolution is driven by the impact of different dimensions of institutional transitions governing B2G and B2B relationships. Copyright Springer Science + Business Media, Inc. 2005

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    File URL: http://hdl.handle.net/10.1007/s10490-005-4113-0
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    Article provided by Springer in its journal Asia Pacific Journal of Management.

    Volume (Year): 22 (2005)
    Issue (Month): 4 (December)
    Pages: 321-336

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    Handle: RePEc:kap:asiapa:v:22:y:2005:i:4:p:321-336
    Contact details of provider: Postal: P.O. Box 17, 3300 AA Dordrecht, the Netherlands
    Web page: http://www.springerlink.com/link.asp?id=106589

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    1. Katharina Pistor & Martin Raiser & Stanislaw Gelfer, 2000. "Law and Finance in Transition Economies," CID Working Papers 49, Center for International Development at Harvard University.
    2. Raymond Fisman, 2001. "Estimating the Value of Political Connections," American Economic Review, American Economic Association, vol. 91(4), pages 1095-1102, September.
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    4. Sunil Kumar Maheshwari & David Ahlstrom, 2004. "Turning Around a State Owned Enterprise: The Case of Scooters India Limited," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 75-101, 03.
    5. Bruton, Garry D. & Ahlstrom, David & Wan, Johnny C. C., 2001. "Turnaround success of large and midsize Chinese owned firms: evidence from Hong Kong and Thailand," Journal of World Business, Elsevier, vol. 36(2), pages 146-165, July.
    6. Simon Johnson & John McMillan, 2002. "Courts and Relational Contracts," Journal of Law, Economics and Organization, Oxford University Press, vol. 18(1), pages 221-277, April.
    7. Jonathan P. Doh & John A. Pearce, 2004. "Corporate Entrepreneurship and Real Options in Transitional Policy Environments: Theory Development," Journal of Management Studies, Wiley Blackwell, vol. 41(4), pages 645-664, 06.
    8. Katharina Pistor & Martin Raiser & Stanislaw Gelfer, 2000. "Law and Finance in Transition Economies," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 8(2), pages 325-368, July.
    9. Hicheon Kim & Robert E. Hoskisson & Laszlo Tihanyi & Jaebum Hong, 2004. "The Evolution and Restructuring of Diversified Business Groups in Emerging Markets: The Lessons from Chaebols in Korea," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 25-48, 03.
    10. Vipin Gupta & Jifu Wang, 2004. "From Corporate Crisis to Turnaround in East Asia: A Study of China Huajing Electronics Group Corporation," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 213-233, 03.
    11. Ahlstrom, David & Bruton, Garry D. & Lui, Steven S. Y., 2000. "Navigating China's changing economy: Strategies for private firms," Business Horizons, Elsevier, vol. 43(1), pages 5-15.
    12. Michael Carney, 2004. "The Institutions of Industrial Restructuring in Southeast Asia," Asia Pacific Journal of Management, Springer, vol. 21(1_2), pages 171-188, 03.
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