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Embeddedness and Contractual Relationships in China's Transitional Economy

DSEID
DSEID-001-5168724
DOI
10.1177/000312240306800104
Journal
American Sociological Review
Publisher
SAGE Publications
Published
2003-2
Status
candidate_rejected

Abstract

Interfirm contracts represent common economic relations in the marketplace; they are also deeply embedded in social relations and social institutions. In the context of China's transitional economy, this study examines how three mechanisms—economizing transaction costs, network-based social relations, and institutional links—affect interfirm contractual relationships in (1) the choice of search channels for contractual partners, (2) the formality and provisions in a contract, and (3) the intensity of social interaction in contract implementation. Empirical evidence is drawn from information collected on 877 contracts from 620 firms in two Chinese cities, Beijing and Guangzhou. The authors find distinct roles of social relations, institutional links, and regulatory environments in the initiation of contractual partners and the forms of contracts adopted, whereas transaction-specific factors play a significant role in the intensity of social interaction in contract implementation. These findings suggest the interplay among economic calculativeness, social networks and institutional links, and the complementarity in the underlying theoretical ideas.

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Metadata

Title
Embeddedness and Contractual Relationships in China's Transitional Economy
Delta ID
DSEID-001-5168724
Authors
Xueguang Zhou, Wei Zhao, Qiang Li, He Cai
Abstract source
crossref
Source URL
https://doi.org/10.1177/000312240306800104
Access
closed_or_uncertain
Licence
unknown
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GROBID
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