Open Access. Powered by Scholars. Published by Universities.®

Business Commons

Open Access. Powered by Scholars. Published by Universities.®

China

Marketing

University of Texas Rio Grande Valley

Articles 1 - 1 of 1

Full-Text Articles in Business

R&D Investment, Business Performance, And Moderating Role Of Guanxi: Evidence From China, Chiquan Guo, Sudipto Sarkar, Jing Zhu, Yong J. Wang Nov 2020

R&D Investment, Business Performance, And Moderating Role Of Guanxi: Evidence From China, Chiquan Guo, Sudipto Sarkar, Jing Zhu, Yong J. Wang

Marketing Faculty Publications and Presentations

Highlights

  • Relationship duration with major clients not only has a direct, negative effect on total income (sales).

  • Relationship duration has a negative moderating effect on the association between research & development (R&D) and total income.

  • Relationship duration with major suppliers has a positive moderating effect on the association between R&D and total profits.

  • Relationship with government has a positive effect on total income, and it also has a negative moderating effect on the R&D-performance chain.

  • Chinese firms over emphasize the importance of guanxi with the government by going overboard or overspending on it.