Responses to alliance partners’ misbehavior and firm performance in China: the moderating roles of Guanxi orientation

Abstract

How can firms respond when their partners conduct misbehaviors? This study identifies two types of strategy: identity- and event-based, which can reduce either identity or efficiency uncertainty and take effect within different social contexts. Based on 457 events of misbehavior from Chinese equity-based alliance 2001–2013, we find that identity accommodation positively while event defense negatively affects firm performance. In regions with higher Guanxi orientation (i.e., more efforts on building and maintaining public relations), such effects become much stronger. These findings advance an event-based view of alliance dynamics and shed light on how firms manage uncertainty from partners and its effectiveness.

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Fig. 1

Notes

  1. 1.

    This news can be found at http://www.chinadaily.com.cn/business/2012-11/27/content_15965951.htm.

  2. 2.

    Due to space constraints, we did not report the matrix here. Details are available upon request.

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Acknowledgements

This research was supported by the National Natural Science Foundation of China (No. 71572005).

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Table 5 Coding schema of identity- and event-based responses

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Lee, L.S., Zhong, W. Responses to alliance partners’ misbehavior and firm performance in China: the moderating roles of Guanxi orientation. Asian Bus Manage 19, 344–378 (2020). https://doi.org/10.1057/s41291-019-00076-0

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Keywords

  • Partners’ misbehavior
  • Identity-based responses
  • Event-based responses
  • Regional Guanxi orientation