“…The value of networks for acquiring resources is theorized and has been empirically tested at the level of employees, boards of directors, business suppliers and between firms and governments (Adler and Kwon, 2002;Bain, 1997;Carpenter and Westphal, 2001;Seibert et al, 2001;Sparrowe et al, 2001;Xin and Pearce, 1996). Guanxi, a system of social ties in China, is the recent focus of scholarly research and had been empirically examined as an antecedent to firm and joint venture performance (Luo, 1997(Luo, , 2001Park and Luo, 2001;Peng and Luo, 2000) and as an effective substitute for formal institutional support (Luo, 2001;Xin and Pearce, 1996).…”