The effects of government relation and institutional environments on channel performance

Research output: Journal Publications and Reviews (RGC: 21, 22, 62)21_Publication in refereed journalNot applicablepeer-review

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Detail(s)

Original languageEnglish
Pages (from-to)587-604
Journal / PublicationAsia Pacific Journal of Marketing and Logistics
Volume30
Issue number3
Publication statusPublished - 2018

Abstract

Purpose - The purpose of this paper is to examine the importance of channel partners’ government relations within channel performance and explore how institutional factors interact to influence channel performance. A theoretical framework, inclusive of hypotheses, is proposed to demonstrate the interaction of government relations and institutional environments on firm performance. Drawing on an institutional perspective, this paper suggests that the effect of partner’s government relations on firm performance is moderated by institutional environment factors, such as government interference, legal protection, and the importance of guanxi. 
Design/methodology/approach - This study conducted a questionnaire survey and collected data from 393 Chinese manufacturer managers in China. 
Findings - Partner’s government relations increase focal firm’s performance and this effect is moderated by different levels of legal protection. Partner’s government relations increase firm performance only in the context of high-legal protection; whereas, when legal protection is low, partner’s government relations decrease focal firm performance. As for the interaction of institutional factors, legal protection and importance of guanxi, all three moderate the negative effect of government interference on firm performance. 
Originality/value - This paper provides insights on how channel partner’s government relations, representing a key institutional capital, interact with institutional environment factors to influence channel performance.

Research Area(s)

  • Government interference, Government relation, Guanxi, Institutional environment, Legal protection

Bibliographic Note

Full text of this publication does not contain sufficient affiliation information. With consent from the author(s) concerned, the Research Unit(s) information for this record is based on the existing academic department affiliation of the author(s).