Hustle for survival or bustle for revival: Effects of Guanxi orientation and order of entry for China's electronic business ventures

摘要

Electronic business ventures (EBVs), startups on Internet platforms, have recently attracted research attention. This study attempts to understand the encompassing mechanism for the superior market performance of EBVs entering China?s electronic market with a focus on the effects of two important drivers. The first is Guanxi orientation, which is a strategic factor rooted in Chinese culture. The second is the order of entry or the chosen time of entering a market to gain advantages. We test six hypotheses based on data collected from 155 EBVs established over the past 10 years in China. The results show that EBVs? Guanxi orientation positively influences their market performance and that this effect is mediated by political ties built through Guanxi activities. Although the order of entry effect is not evident for EBVs, Guanxi orientation contributes to market performance to a higher degree for late entrant EBVs than for early follower EBVs. The study?s findings offer new insights into the implementation of Guanxi orientation in the fast-growing electronic market in China, an emerging country with a culture distinct from that of the West.