“…On the one hand, if it is national culture that primarily drives strategic choices, the intense reliance on interpersonal relationships may last a long time or at least will not experience a noticeable decline as market reforms deepen, since culture changes relatively slowly (Hofstede, 2007). On the other hand, if it is institutional (under)development that shapes strategic choices, we will probably see a gradually reduced role of interpersonal relationships and a heavier reliance on market-based capabilities as formal market-supporting institutions are gradually implemented (Ahlstrom, Bruton, & Yeh, 2007;Dieleman & Sachs, 2006;Li, Sun, & Liu, 2006b;White, 2000;Xu et al, 2006;Zhou & Peng, 2006;Zhou, Li, Zhao, & Cai, 2003). Evidence supportive of the institution-based view, articulated in Peng (2003), is now emerging.…”