Purpose
This study aims to examine the effects of formal and informal institutional factors (i.e. marketization and guanxi culture) on interorganizational conflicts (IOCs) and their interaction effects.
Design/methodology/approach
Drawing on IOC literature and an institution-based view, the authors use a sample of 12,022 Chinese firms from the World Bank’s Investment Climate Survey. A zero-inflated negative binomial regression was used to analyze the data.
Findings
The results suggest that guanxi culture has U-shaped effects, but marketization does not negatively affect IOCs. Furthermore, a low level of marketization weakens the U-shaped effect of guanxi culture on IOCs. A moderate level of guanxi culture can enable marketization to reduce IOCs.
Practical implications
This study provides a better understanding of the management of IOCs. Managers should fully understand the differential effects of the institutional environment in different regions and their interactions by adopting different response strategies.
Originality/value
This study enriches the literature on IOCs’ antecedents and contextual factors by examining the institutions’ direct and interaction effects on IOCs.
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