Analyzing stage and duration of Anglo-Chinese business-to-business relationships

This is the post-print version of the final paper published in Industrial Marketing Management. The published article is available from the link below. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. Copyright @ 2010 Elsevier B.V.The manuscript reports on a study aimed at analyzing a series of relational variables derived from the Western industrial buyer–seller relationship and Chinese guanxi literature. The findings based on data collected from over 200 Taiwanese trading firms reveal that buyer's perceptions of organizational trust, communication, cooperation, social bonding and the saving of face are higher in Anglo-Chinese relationships that venture beyond the short-term. It is also found that cooperation, social bonding and performance are greater in those b2b relationships surveyed that are relatively more mature than in emerging states. The findings also reveal that relationship duration and stage have a significant moderating effect on various Inter-organizational and Interpersonal–Outcome relationships. Several managerial implications are extracted to help Western firms better manage their international relations, as well as help new exporting firms penetrate such well-established guanxi networks

Mentoring: Adding Value to Organizational Culture

Given that leadership is value-based and relationship-permeated, one asks how leaders can transfer personal and organizational value to employees. One answer to this is through mentoring. Mentoring young or inexperienced workers is an investment in the future of business, the school system, organizations, etc. Understanding this idea is difficult because current mentoring research demonstrates that mentoring is more convoluted than was once thought. This article will make an effort to untangle some of this research and then suggest a “common sense” and “practical” definition of “mentoring.” This is a definition that can be used in large and small businesses, in churches, schools, and by community organizations. In our conclusion, we summarize the research examined: The characteristics of a mentor The characteristics of a mentor-protégé relationship A description of the mentoring process A simple definition of “mentoring” that is widely applicabl

Formation of social capital in Central and Eastern Europe: Understanding the gap vis-à-vis developed countries

Recent Eurobarometer survey data are used to document and explain the stock of social capital in 27 European countries. Social capital in Central and Eastern Europe – measured by civic participation and access to social networks – lags behind that in Western European countries. Using regression analysis of determinants of individual stock of social capital, we find that this gap persists when we account for individual characteristics and endowments of respondents but disappears completely after we control for aggregate measures of economic development and quality of institutions. Informal institutions such as prevalence of corruption appear particularly important.http://deepblue.lib.umich.edu/bitstream/2027.42/40152/3/wp766.pd

Strategies, Uncertainty and Performance of Small Business Startups

Personal strategies of owners/founders of small business startups are related to performance and to environmental uncertainty. This is done using a longitudinal data set of some 50 Dutch startups. The results suggest a dynamic process between strategy and performance.A discrimination is made between four strategies (reactive, critical point, complete planning and opportunistic). The role of uncertainty is discussed. The dynamic process is embedded in the PERSUADE model.entrepreneurship;strategy;uncertainty;performance;small business startups

Trust among Strangers

The trust building process is basic to social science. We investigate it in a laboratory setting using a novel multi-stage trust game where social gains are achieved if players trust each other in each stage. And in each stage, players have an opportunity to appropriate these gains or be trustworthy by sharing them. Players are strangers because they do not know the identity of others and they will not play them again in the future. Thus there is no prospect of future interaction to induce trusting behavior. So, we study the trust building process where there is little scope for social relations and networks. Standard game theory, which assumes all players are opportunistic, untrustworthy, and should have zero trust for others is used to construct a null hypothesis. We test whether people are trusting or trustworthy and examine how inferring the intentions of those who trust affects trustworthiness. We also investigate the effect of stake on trust, and study the evolution of trust. Results show subjects exhibit some degree of trusting behavior though a majority of them are not trustworthy and claim the entire social gain. Players are more reluctant to trust in later stages than in earlier ones and are more trustworthy if they are certain of the trustee’s intention. Surprisingly, subjects are more trusting and trustworthy when the stake size increases. Finally, we find the sub- population who invests in initiating the trust building process modifies its trusting behavior based on the relative fitness of trust.Experimental Economics, Behavioral Economics