Roles of entrepreneurial orientation andguanxinetwork with parent university in start-ups’ performance: evidence from university spin-offs in China

Abstract

The aim of this study is to examine the roles of entrepreneurial orientation (EO) and the guanxi network with parent university (GNPU) in the creation of university spin-offs (USOs). The study replicates and extends previous research on academic entrepreneurship by providing an empirical analysis using data from 140 USOs in China. The empirical results indicate that three dimensions of EO (innovativeness: IN; proactiveness: PR; and risk-taking: RT) and GNPU have positive effects on the financial performance (FP); PR, RT, and GNPU have positive effects on non-financial performance (NFP) of USOs. In the context of moderating effects, this study finds that only GNPU positively moderates the relationships between IN and FP as well as between PR and NFP, failing to find others. Generally speaking, EO is an important strategic asset and GNPU is an important organisational resource that underpin the establishment of USOs. In addition, we also provide some important theoretical and practical implications for scholars, practitioners, and policy-makers.

Can High-Tech Ventures Benefit from Government Guanxi and Business Guanxi? The Moderating Effects of Environmental Turbulence

“…The results from 146 new ventures belonging to government-driven high-tech clusters suggest that, in general, both government guanxi and business guanxi can strengthen firm performance. Consistent with the findings of previous studies [2,21,23], the present study also verifies that guanxi remains an important strategic asset with a significant effect on doing business in China's transition economy. In addition, the study examines the moderating effects of institutional turbulence and market turbulence on the relationship between government guanxi (or business guanxi) and new venture performance.…”

“…Guanxi strategy theory argues that these strategic needs are very closely related to the effective embeddedness of business guanxi [1,23]. This is because good business guanxi can help new ventures overcome their liability of newness and more effectively embed themselves in the industrial network to benefit from industrial divisions [33].…”

“…For new ventures, their survival and growth are greatly influenced by several important strategic factors such as building business legitimacy [31], looking for primary customers [13], promoting business transactions [32], and obtaining knowledge or technology support [23]. Guanxi strategy theory argues that these strategic needs are very closely related to the effective embeddedness of business guanxi [1,23].…”

“…As mentioned earlier, guanxi reflects the Chinese contextual notion and the way that people can do business more effectively and successfully. Therefore, some scholars from both Western countries and China have made efforts since the late 1990s to develop guanxi strategy theory to examine the relationship between guanxi and firm performance in a more effective manner [22,23]. Guanxi strategy theory suggests that building and using guanxi connections may help firms strengthen business performance in China's economic transition period [1].…”

“…Third, during stable firm growth, guanxi ties with various individuals and organizations from multiple backgrounds may help new ventures consistently exploit business opportunities and market potential to realize sustainable growth. Su and Sohn (2015) [23] offered additional theoretical perspectives on the role of guanxi in entrepreneurship, through which new ventures often obtain important information and critical resources by using their guanxi ties with important individuals or organizations. They also emphasized that the mutual trust originating from guanxi ties can help new ventures create accessing routines to entrepreneurial resources.…”