Institutional Transformation and Changing Networking Patterns in China

Drawing insights from the institutional embeddedness perspective, this article explores the changing patterns and significance of two types of strategic networking along with the institutional transformation in China. Using two-wave survey data on Chinese private firms, we find that after the state relaxed its control of resources the importance of networking with the state tends to decline, while ties with market actors become increasingly important. Determinants of network investment have shifted from managers' perceived importance of different types of network ties to a firm's immediate institutional environment. Finally, the impact of networking on firm growth has also altered over time. These findings advance our understanding of the crucial role of the institutional environment in shaping firms' networking strategies and have important theoretical and practical implications.National Natural Science Foundation of China [71172022]; University of North Carolina at CharlotteSSCIARTICLEjjzhang@gsm.pku.edu.cn; wzhao1@uncc.edu; yanlong.zhang@gsm.pku.edu.cn2303-3311