“…Comparatively, little research has Formal and informal institutions been done on IOCs (Lumineau et al, 2015), which are manifestations of the dark side of interorganizational relationships (Oliveira and Lumineau, 2019). Although previous studies have examined the linear effects of guanxi on reducing IOCs (Abosag et al, 2021;Wong and Tjosvold, 2010;Yang et al, 2017;Yen et al, 2017;Zhang and Zhang, 2013;Zhang et al, 2021;Zhuang et al, 2010), they ignored the dark side of guanxi. Our study suggests that guanxi culture at the regional level has a U-shaped effect on IOCs, consistent with Peng's (2003) argument that relationship-based personalized exchange has a U-shaped effect on costs.…”