Subnational institutions, managerial social ties, and Nordic SMEs performance in an Asian emerging market: Evidence from Danish investments in China

Name of applicant

Yi Wang


Associate Professor


University of Southern Denmark


DKK 75,000



Type of grant

Field Trips / Research Stays < 100,000


This study analyzes the relationship between guanxi (social networks) and Small and Medium-sized Firms (SMEs)’ performance in China and its contingency variables through the lens of social capital theory (Coleman, 1988) and institution-based view (Peng, 2002). In more detail, it analyzes 1) the relationship between business-to-business (B2B) and business-to-government (B2G) guanxi and subsidiary performance of SMEs and 2) the moderating effects of industrial-level government restrictions and provincial-level marketization. We expect guanxi networks bring social capitals to SMEs, which increases the subsidiary performance. This relationship is stronger for B2G than B2B guanxi and when investments are made in more restricted industries and in provinces that less progressed in marketization.

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