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Does a Micro-Macro Link Exist Between Managerial Value of Reciprocity, Social Capital and Firm Performance? The Case of SMEs in China

  • Wei-ping Wu

    ()

  • Alicia Leung
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    With the deepening of China's economic reform, SMEs are starting to gain tremendous economic momentum and play an increasingly irreplaceable role in China's century-long bid for economic resurgence. Using a micro-macro link approach, this study investigates the effects of managerial value of reciprocity on both social capital and firm performance in China's rural SMEs. A structural equation modelling method was used to test hypotheses. Data from 177 SMEs in China provide supporting evidence that there exists a micro-macro link from managerial value of reciprocity, to social capital (trust) and to firm performance (both overall performance and competitiveness improvement). Copyright Springer Science + Business Media, Inc. 2005

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    File URL: http://hdl.handle.net/10.1007/s10490-005-4119-7
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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: 445-463

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    Handle: RePEc:kap:asiapa:v:22:y:2005:i:4:p:445-463
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    Web page: http://www.springerlink.com/link.asp?id=106589

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    1. Mick Carney, 1998. "The Competitiveness of Networked Production: The Role of Trust and Asset Specificity," Journal of Management Studies, Wiley Blackwell, vol. 35(4), pages 457-479, 07.
    2. Xiao-Ping Chen & Chao C. Chen, 2004. "On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development," Asia Pacific Journal of Management, Springer, vol. 21(3), pages 305-324, 09.
    3. Robert Westwood & Andrew Chan & Stephen Linstead, 2004. "Theorizing Chinese Employment Relations Comparatively: Exchange, Reciprocity and the Moral Economy," Asia Pacific Journal of Management, Springer, vol. 21(3), pages 365-389, 09.
    4. Williamson, Oliver E, 1983. "Credible Commitments: Using Hostages to Support Exchange," American Economic Review, American Economic Association, vol. 73(4), pages 519-40, September.
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