Relational exchanges versus arm’s-length transactions during institutional transitions

Abstract

Institutional transitions, Relational exchanges, Arm’s-length transactions,

An institution-based view of international business strategy: a focus on emerging economies

“…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.…”

Corporate governance and national institutions: A review and emerging research agenda

“…For example, Zhou & Peng (2010) theorize that whether the impact of family ownership and control on firm value is good, bad or irrelevant depends on the level of shareholder protection embodied in the legal and regulatory institutions and these vary across countries. They suggest that in countries with less developed institutions more control through a family CEO or pyramid structure may afford controlling families more opportunities to expropriate funds from minority shareholders (see also Young et al, 2008).…”

Managerial ties, strategic initiatives, and firm performance in Central Asia and the Caucasus

“…Well-developed market-supporting institutions may reduce the need for firms to spend time and resources on managerial ties (Danis et al, 2010;Peng, 2003;Zhou & Peng, 2010). Firms in institutionally developed environments can invest more time and resources on productive strategic initiatives (Kriauciunas & Kale, 2006).…”