TY - JOUR
T1 - Social ties and firm performance
T2 - The mediating effect of adaptive capability and supplier opportunism
AU - Zhu, Wenting
AU - Su, Samuel
AU - Shou, Zhigang
PY - 2017/9
Y1 - 2017/9
N2 - This study integrates dynamic capabilities and relational governance theories to examine how business ties and political ties affect firm performance. The findings from a survey of 187 Chinese distributors of construction and decoration materials indicate that increased firm adaptive capability and reduced opportunism mediate the contribution of both ties to firm performance. In addition, legal enforceability and demand uncertainty determine the relative prominence of the two process intermediaries in joint consideration with the type of social ties (i.e., business ties and political ties). Specifically, political ties foster firm performance mainly by constraining supplier opportunism when legal enforceability is weak, whereas adaptive capability has a stronger mediating effect in the link between business ties and firm performance when demand uncertainty is high.
AB - This study integrates dynamic capabilities and relational governance theories to examine how business ties and political ties affect firm performance. The findings from a survey of 187 Chinese distributors of construction and decoration materials indicate that increased firm adaptive capability and reduced opportunism mediate the contribution of both ties to firm performance. In addition, legal enforceability and demand uncertainty determine the relative prominence of the two process intermediaries in joint consideration with the type of social ties (i.e., business ties and political ties). Specifically, political ties foster firm performance mainly by constraining supplier opportunism when legal enforceability is weak, whereas adaptive capability has a stronger mediating effect in the link between business ties and firm performance when demand uncertainty is high.
KW - Adaptive capability
KW - Demand uncertainty
KW - Legal enforceability
KW - Social ties
KW - Supplier opportunism
UR - http://www.scopus.com/inward/record.url?scp=85012906937&partnerID=8YFLogxK
UR - https://www.scopus.com/record/pubmetrics.uri?eid=2-s2.0-85012906937&origin=recordpage
U2 - 10.1016/j.jbusres.2016.12.018
DO - 10.1016/j.jbusres.2016.12.018
M3 - RGC 21 - Publication in refereed journal
SN - 0148-2963
VL - 78
SP - 226
EP - 232
JO - Journal of Business Research
JF - Journal of Business Research
ER -