“…Secondly, there is a large body of literature on the network types of governance used by the Chinese government. A part of this literature are studies of horizontal directorate interlocks between Chinese firms (Au, Peng, & Wang, 2000; Li, Tian, & Yan, 2013; Lin, Peng, Yang, & Sun, 2009; Luo, 2003; Yang & Cai, 2011; Zhang, 2016). However, very little research exists on the use of vertical interlocks within business groups (see review below), which we in this article suggest is one solution to the coordination or governance problems mentioned above.…”