The transaction cost advantage of guanxi-based business practices
2000; Elsevier BV; Volume: 35; Issue: 1 Linguagem: Inglês
10.1016/s1090-9516(99)00032-2
ISSN1878-5573
AutoresStephen S. Standifird, R. Scott Marshall,
Tópico(s)Corporate Finance and Governance
ResumoThe purpose of this paper is to provide a theoretical explanation of the perpetuation of China’s guanxi-based business practices. As a complement to the social embeddedness- and resource-based explanations, we seek to demonstrate the perseverance and relevance of guanxi in terms of the transaction cost advantages it offers. Specifically, we argue that guanxi-based business practices offer certain transaction cost advantages over existing structural alternatives identified in transaction cost theory. Where the guanxi network is well developed, the transaction cost advantages of guanxi-based exchange are sufficient to warrant the integration of guanxi- and market-based exchange mechanisms.
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