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Zhou, Liying; Niu, Yongge; Wang, Valerie Lynette; Tang, Kaijiang
Industrial marketing management, 02/2021, Volume: 93Journal Article
Electronic business ventures (EBVs), startups on Internet platforms, have recently attracted research attention. This study attempts to understand the encompassing mechanism for the superior market performance of EBVs entering China's electronic market with a focus on the effects of two important drivers. The first is Guanxi orientation, which is a strategic factor rooted in Chinese culture. The second is the order of entry or the chosen time of entering a market to gain advantages. We test six hypotheses based on data collected from 155 EBVs established over the past 10 years in China. The results show that EBVs' Guanxi orientation positively influences their market performance and that this effect is mediated by political ties built through Guanxi activities. Although the order of entry effect is not evident for EBVs, Guanxi orientation contributes to market performance to a higher degree for late entrant EBVs than for early follower EBVs. The study's findings offer new insights into the implementation of Guanxi orientation in the fast-growing electronic market in China, an emerging country with a culture distinct from that of the West. •The market performance of Electronic Business Ventures (EBVs) is studied in a Chinese cultural context, taken into consideration order of entry decisions.•Order of entry does not appear a determinant factor for EBVs’ superior performance, but it has a moderating effect on the relationship between Guanxi orientation and market performance.•EBVs’ Guanxi orientation leads to stronger political ties, which in turn positively influence market performance.
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