Do business and political ties differ in cultivating marketing channels for foreign and local firms in China?

Journal of International Marketing

Volumn 21, Issue 1, 2013, Pages 39-56

  Dong, Maggie Chuoyan ^a   Li, Caroline Bingxin ^b   Tse, David K ^c  

^a CITY UNIVERSITY OF HONG KONG   (Hong Kong)

^b UNIVERSITY OF DENVER   (United States)

^c UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

Channel capability; China; Emerging economy; Social ties

Indexed keywords

EID: 84875710587     PISSN: 1069031X     EISSN: None     Source Type: Journal    
DOI: 10.1509/jim.12.0088     Document Type: Article

References (92)

1. Aiken, Leona S. and Stephen G. West (1991), Multiple Regression: Testing and Interpreting Interactions. Thousand Oaks, CA: Sage Publications.
2. Ambler, Tim and Chris Styles (2000), "The Future of Relational Research in International Markering: Constructs and Conduits", International Marketing Review, 17(6), 492-508.
3. -. and Xiucun Wang (1999), "The Effect of Channel Relationships and Guanxi on the Performance of Inter-Province Export Ventures in the People's Republic of China", International Journal of Research in Marketing, 16(1), 75-87.
4. Amit, Raphael and Paul J. H. Schoemaker (1993), "Strategic Assets and Organizational Rent", Strategic Management Journal, 14(1), 33-46.
5. Anderson, James C. and David W. Gerbing (1982), "Some Methods for Respecifying Measurement Models to Obtain Uni-dimensional Construct Measurement", Journal of Marketing Research, 19 (November), 453-60.
6. -. and -. (1988), "Structural Equation Modeling in Practice: A Review and Recommended Two-Step Approach", Psychological Bulletin, 103(3), 411-23.
7. Atuahene-Gima, Kwaku and Haiyang Li (2002), "When Does Trust Matter? Antecedents and Contingent Effects of Supervisee Trust on Performance in Selling New Products in China and United States", Journal of Marketing, 66 (July), 61-81.
8. Baker, Wayne E. and Robert R. Faulkner (2004), "Social Networks and Loss of Capital", Social Networks, 26(2), 91-111.
9. Barney, Jay (1991), "Firm Resources and Sustained Competitive Advantage", Journal of Management, 17(1), 99-120.
10. Bharadwaj, Anandhi S. (2000), "A Resource-Based Perspective on Information Technology Capability and Firm Performance: An Empirical Investigation", MIS Quarterly, 24(1), 169-96.
11. Boisot, Max and John Child (1996), "From Fiefs to Clans and Network Capitalism: Explaining China's Emerging Economic Order", Administrative Science Quarterly, 41(4), 600-628.
12. Bond, Michael (1991), Beyond the Chinese Face. Hong Kong: Oxford University Press.
13. -. ed. (1996), Handbook of Chinese Psychology. Hong Kong: Oxford University Press.
14. Brown, Steven P. (1989), "Moderators and Mediators: A Review of Concepts and Usage in Marketing Research", in American Marketing Association Proceedings, Vol. 55. Chicago: American Marketing Association, 170-75.
15. Child, John (1994), Management in China During the Age of Reform. Cambridge, UK: Cambridge University Press.
16. -. and Suzana B. Rodrigues (2005), "The Internationalization of Chinese Firms: A Case for Theoretical Extension?" Management and Organization Review, 1(3), 381-410.
17. -. and David K. Tse (2001), "China's Transition and Its Implications for International Business", Journal of International Business Studies, 32(1), 5-21.
18. Collis, David J. (1994), "How Valuable Are Organizational Capabilities?" Strategic Management Journal, 15(S1), 143-52.
19. Contractor, Noshir, Stanley Wasserman, and Katherine Faust (2000), "Testing Multi-Level, Multi-Theoretical Hypotheses About Networks in 21st Century Organizational Forms: An Analytic Framework and Empirical Example", paper presented at the International Communication Association Meeting, Acapulco, Mexico (May).
20. Davies, Howard, Thomas K. P. Leung, Sherriff T. K. Luk, and Yiuhing Wong (1995), "The Benefits of 'Guanxi': The Values of Relationships in Developing the China Market", Industrial Marketing Management, 24(3), 207-214.
21. -. and Peter Walters (2004), "Emergent Patterns of Strategy, Environment and Performance in a Transition Economy", Strategic Management Journal, 25(4), 347-64.
22. Day, George S. (1994), "The Capabilities of Market-Driven Organizations", Journal of Marketing, 58 (October), 37-52.
23. Dong, Maggie Chuoyan, Daivid K. Tse, and Kineta Hung (2010), "Effective Distributor Governance in Emerging Markets: The Salience of Distributor Role, Relationship Stages and Market Uncertainty", Journal of International Marketing, 17(3), 1-17.
24. Dyer, Jeffrey H. and Harbir Singh (1998), "The Relational View: Cooperative Strategy and Sources of Interorganizational Competitive Advantage", Academy of Management Review, 23(4), 660-79.
25. Fernandez, Juan A. and Laurie Underwood (2006), China CEO: Voices of Experience from 20 International Business Leaders. Singapore: John Wiley & Sons.
26. Geletkanycz Marta A. and Donald C. Hambrick (1997), "The External Ties of Top Executives: Implications for Strategic Choices and Performance", Administrative Science Quarterly, 42(4), 654-81.
27. Granovetter, Mark (1985), "Economic Action and Social Structure: The Problem of Embeddedness", American Journal of Sociology, 91 (November), 481-510.
28. Griffith, David A. and Matthew B. Myers (2005), "The Performance Implications of Strategic Fit of Relational Norm Governance Strategies in Global Supply Chain Relationships", Journal of International Business Studies, 36(3), 254-69.
29. Gu, Flora F., Kineta Hung, and David K. Tse (2008), "When Does Guanxi Matter? Issues of Capitalization and Its Dark Sides", Journal of Marketing, 72 (July), 12-28.
30. Heide, Jan B. and George John (1992), "Do Norms Matter in Marketing Relationships?" Journal of Marketing, 56 (April), 32-44.
31. Hitt, Michael A. and R. Duane Ireland (1985), "Corporate Distinctive Competence, Strategy, Industry and Performance", Strategic Management Journal, 6(3), 273-93.
32. Hoskisson, Robert E., Lorraine Eden, Chung M. Lau, and Mike Wright (2000), "Strategy in Emerging Economies", Academy of Management Journal, 43(3), 249-67.
33. Hunter, John E. and David W. Gerbing (1982), "Uni-dimensional Measurement, Second-Order Factor Analysis, and Causal Models", in Research in Organizational Behavior, Vol. 4, B. M. Staw and L. L. Cummings, eds. Greenwich, CT: JAI Press, 267-99.
34. Jaccard, James, Choi K. Wan, and Robert Turrisi (1990), "The Detection and Interpretation of Interaction Effects Between Continuous Variables in Multiple Regression", Multivariate Behavior Research, 25(4), 467-78.
35. Jap, Sandy D. (1999), "Pie-Expansion Efforts: Collaboration Processes in Buyer-Supplier Relationships", Journal of Marketing Research, 36 (November), 461-75.
36. Jeffries, Frank L. and Richard Reed (2000), "Trust and Adaptation in Relational Contracting", Academy of Management Review, 25(4), 873-82.
37. Kemper, Jan, Andreas Engelen, and Malte Brettel (2011), "How Top Management's Social Capital Fosters the Development of Specialized Marketing Capabilities: A Cross-Cultural Comparison", Journal of International Marketing, 19(3), 87-112.
38. Khanna, Tarun and Krishna Palepu (1997), "Why Focused Strategies May Be Wrong for Emerging Markets", Harvard Business Review, 75(4), 41-51.
39. Krasnikov, Alexander and Satish Jayachandran (2008), "The Relative Impact of Marketing, Research-and-Development, and Operations Capabilities on Firm Performance", Journal of Marketing, 72 (July), 1-11.
40. Lau, Chung M., David K. Tse, and Nan Zhou (2002), "Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment and Job Satisfaction, "Journal of International Business Studies, 33(3), 533-50.
41. Lee, Don (2006), "Big Boxes Battle in China", Los Angeles Times, (July 2), [available at http://articles.latimes.com/2006/jul/02/business/ fi-cairefour2].
42. Li, Haiyang and Yan Zhang (2007), "The Role of Managers Political Networking and Functional Experience in New Venture Performance: Evidence from China's Transition Economy", Strategic Management Journal, 28(8), 791-804.
43. Li, Julie J., Laura Poppo, and Kevin Z. Zhou (2008), "Do Social Ties in China Always Produce Value? Competition, Uncertainty, and Domestic vs. Foreign Firms", Strategic Managementjournal, 29(4), 383-400.
44. -. Kevin Z. Zhou, and Alan T. Shao (2009), "Competitive Position, Social Ties, and Profitability of Foreign Firms in China: An Interactive Perspective", Journal of International Business Studies, 40(2), 339-52.
45. Liu, Yi, Yuan Li, Lei Tao, and Ying Wang (2008), "Relationship Stability, Trust and Relational Risk in Marketing Channels: Evidence from China", Industrial Marketing Management, 37(4), 432-46.
46. Lorenzoni, Gianni and Andrea Lipparini (1999), "The Leveraging of Interfirm Relationships as a Distinctive Organizational Capability: A Longitudinal Study", Strategic Management Journal, 20(4), 317-38.
47. Lovett, Steve, Lee C. Simmons, and Raja Kali (1999), "Guanxi Versus the Market: Ethics and Efficiency", Journal of International Business Studies, 30(2), 231-48.
48. Luk, Sherriff T. K. (1998), "Structural Changes in China's Distribution System", International Journal of Physical Distribution and Logistics Management, 28 (1) 44-67.
49. Luo, Xueming, Maxwell K. Hsu, and Sandra S. Liu (2008), "The Moderating Role of Institutional Networking in the Customer Orientation-Trust/ Commitment-Performance Causal Chain in China", Journal of the Academy Marketing Science, 36(2), 202-214.
50. Luo, Yadong (2002), "Capability Exploitation and Building in a Foreign Market: Implications for Multinational Enterprises", Organization Science, 13(1), 48-63.
51. -. (2003), "Industrial Dynamics and Managerial Networking in an Emerging Market: The Case of China", Strategic Management Journal, 24(13), 1315-27.
52. -. and Min Chen (1997), "Does Guanxi Influence Firm Performance?" Asia Pacific Journal of Management, 14(1), 1-16.
53. Miller, Stewart R. and Arvind Parkhe (2002), "Is There a Liability of Foreignness in Global Banking? An Empirical Test of Banks' X-Efficiency", Strategic Management Journal, 23(1), 55-75.
54. Murray, Janet, Gerald Gao, and Masaaki Kotabe (2011), "Market Orientation and Performance of Export Ventures: The Process Through Marketing Capabilities and Competitive Advantages", Journal of the Academy of Marketing Science, 39(2), 252-69.
55. Nee, Victor (1992), "Organizational Dynamics of Market Transition: Hybrid Forms, Property Rights, and Mixed Economy in China", Administrative Science Quarterly, 37(1), 1-27.
56. Nolan, Peter (2001), China and the Global Economy. Basingstoke, UK: Palgrave.
57. Noordhoff, Corine S., Kyriakos Kyriakopoulos, Christine Moorman, Pieter Pauwels, and Benedict G. C. Dellaert (2011), "The Bright Side and Dark Side of Embedded Ties in Businessto-Business Innovation", Journal of Marketing, 75 (September), 34-52.
58. Nunnally, Jum C. (1978), Psychometric Theory. New York: McGraw-Hill.
59. Park, Seung Ho and Yadong Luo (2001), "Guanxi and Organizational Dynamics: Organizational Networking in Chinese Firms", Strategic Management Journal, 22(5), 455-77.
60. Peng, Mike (1997), "Firm Growth in Transitional Economies: Three Longitudinal Cases from China, 1989-96", Organization Studies, 18(3), 385-413.
61. -. (2000), Business Strategies in Transition Economies. Thousand Oaks, CA: Sage Publications.
62. -. (2003), "Institutional Transitions and Strategic Choices", Academy of Management Review, 28(2), 275-96.
63. -. and Peggy Sue Heath (1996), "The Growth of the Firm in Planned Economies in Transition: Institutions, Organizations, and Strategic Choice", Academy of Management Review, 21(2), 492-528.
64. -. and Yadong Luo (2000), "Social Ties and Firm Performance in a Transition Economy: The Nature of a Micro-Macro Link", Academy of Management Journal, 43(3), 486-501.
65. People's Daily (2002), "Why Mercedes-Benz Plays Tough on Its Chinese Customer?" (January 24), [available at http://english. people.com.cn/20020l/24/eng20020124-89269.shtml].
66. Pfeffer, Jeffrey and Gerald R. Salancik (1978), The External Control of Organizations. New York: Harper & C Row.
67. Podolny, Joel M. and Karen L. Page (1998), "Network Forms of Organization", Annual Review of Sociology, 24, 57-76.
68. Podsakoff, Philip M., Scott B. MacKenzie, Jeong-Yeon Lee, and Nathan P. Podsakoff (2003), "Common Method Biases in Behavioral Research: A Critical Review of the Literature and Recommended Remedies", Journal of Applied Psychology, 88(5), 879-903.
69. Poppo, Laura and Todd Zenger (1998), "Testing Alternative Theories of the Firm: Transaction-Cost, Knowledge-Based, and Measurement Explanations for Make-or-Buy Decisions in Information Services", Strategic Management Journal, 19(9), 853-77.
70. Powell, Walter W. (1990), "Neither Market nor Hierarchy: Network Forms of Organization", in Research in Organizational Behavior, Vol. 12, L. L. Cummings and B. M. Staw, eds. Greenwich, CT: JAI Press, 295-336.
71. Rindfleisch, Arie and Christine Moorman (2003), "Interfirm Cooperation and Customer Orientation", Journal of Marketing Research, 40 (November), 421-36.
72. Rumelt, Richard P. (1984), "Towards a Strategic Theory of the Firm", in Competitive Strategic Management, R. B. Lamb, ed. Englewood Cliffs, NJ: Prentice Hall, 556-70.
73. Sharma, S., R. M. Durand, and O. Gur-Arie (1981), "Identification and Analysis of Moderator Variables", Journal of Marketing Research, 18 (August), 291-300.
74. Su, Chenting, Zhiling Yang, Guijun Zhuang, Nan Zhou, and Wenyu Dou (2009), "Interpersonal Influence as an Alternative Channel Communication Behavior in Emerging Markets: The Case of China", Journal of International Business Studies, 40(4), 668-89.
75. Tan, J. Justin and Robert J. Litschert (1994), "Environment-Strategy Relationship and Its Performance Implications: An Empirical Study of the Chinese Electronics Industry", Strategic Management Journal, 15(1), 1-20.
76. Tsang, Eric W. K. (1998), "Can Guanxi Be a Source of Sustained Competitive Advantage for Doing Business in China?" Academy of Management Executive, 12(2), 64-72.
77. Uzzi, Brian (1997), "Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness", Administrative Science Quarterly, 42 (March), 35-67.
78. Wälder, Andrew G. (1995), "Local Governments as Industrial Firms: An Organizational Analysis of China's Transition Economy", American Journal of Sociology, 101(2), 263-301.
79. -. (2003), "Elite Opportunity in Transitional Economies", American Sociological Review, 68(6), 899-916.
80. Walters, Peter G. and Saeed Samiee (2003), "Executive Insights: Marketing Strategy in Emerging Markets: The Case of China", Journal of International Marketing, 11(1), 97-106.
81. Warren, Danielle E., Thomas W. Dunfree, and Naihe Li (2004), "Social Exchange in China: The Double-Edged Sword of Guanxi", Journal of Business Ethics, 55(4), 355-72.
82. Wellman, Barry (1988), "Structural Analysis: From Method and Metaphor to Theory and Substance", in Social Structures: A Network Approach, B. Wellman and S. D. Berkowitz, eds. Cambridge, UK: Cambridge University Press, 19-61.
83. Wernerfeit, Birger (1984), "Resource-Based View of the Firm", Strategic Management Journal, 5(2), 171-80.
84. Wicks, Andrew C, Shawn L. Berman, and Thomas M. Jones (1999), "The Structure of Optimal Trust: Moral and Strategic Implications", Academy of Management Review, 24(1), 99-116.
85. Wuyts, Stefan and Inge Geyskens (2005), "The Formation of Buyer-Supplier Relationships: Detailed Contract Drafting and Close Partner Selection", Journal of Marketing, 69 (October), 103-117.
86. Xin, Katherine R. and Jone L. Pearce (1996), "Guanxi: Connections as Substitutes for Formal Institutional Support", Academy of Management Journal, 39(6), 1641-58.
87. Yang, Mayfair Mei-Hui (1994), Gifts, Favors and Banquets: The Art of Social Relationships in China. New York: Cornell University Press.
88. Yeung, Irene and Rosalie L. Tung (1996), "Achieving Business Success in Confucian Societies: The Importance of Guanxi (Connections) ", Organizational Dynamics, 25(2), 54-65.
89. Zhang, Chun, S. Tamer Cavusgil, and Anthony S. Roath (2003), "Manufacturer Governance of Foreign Distributor Relationships: Do Relational Norms Enhance Competitiveness in the Export Market?" Journal of International Business Studies, 34(6), 550-66.
90. Zhou, Kevin Z. and Laura Poppo (2010), "Exchange Hazards, Relational Reliability, and Contracts in China: The Contingent Role of Legal Enforceability", Journal of International Business Studies, 41(5), 861-81.
91. -. Chi Kin Yim, and David K. Tse (2005), "The Effects of Strategic Orientations on Technology- and Market-Based Breakthrough Innovations", Journal of Marketing, 69 (April), 42-60.
92. Zou, Shaoming, Eric Fang, and Shuming Zhao (2003), "The Effect of Export Marketing Capabilities on Export Performance: An Investigation of Chinese Exporters", Journal of International Marketing, 11(4), 32-55.