Influence Of Institution Environment On Enterprise Relationship Strength

For over30years of reform and opening-up, our country economy has obtainedthe huge leap, market-oriented economy in our country has been constantly deepened,and institutional environment has been improved. But between the Chineseinstitutional environment and the western developed countries, there is still a largegap. First, compared with western developed countries, the formal institution in Chinais relatively backward, there are many loopholes and defects; Second, informalinstitutions, there’re great differences between the Chinese and western. Influenced byConfucian culture, Chinese society has the obvious Confucian characteristics, such asreciprocity and collectivism. Because of the unique institutional environment in China,the Chinese enterprise behavior including enterprise social network also has itsuniqueness in China, such as Chinese companies paying equal attention to thegovernment and the market relations, etc. In order to explain the relationship betweenChina’s institutional environment and corporate social network, this paper researchand analyzed from two aspects of the theoretical and empirical.System as a macro level of social environment is composed by basic rules ofpolitical, social and legal norms, including formal institution and informal institution(North,1990). Formal institution in this paper is mainly refers to the laws regulationsand their implementation. For informal institutions, the paper focusing on reciprocitywhich is the characteristics of Confucianism; according to the previous researchdefined the content of reciprocity in China; selected “social reciprocity (thewidespread tendency of reciprocity in the environment)” as variables to carry out theresearch; and design the scale of social reciprocity. For networks, this paper choosesthe intensity of enterprise government relationship and enterprise market relationshipas the foothold of the study.On the basis of predecessors’ research, this article first analyze the relationshipbetween the institutional environment and enterprise relationship intensity (intensity of government relationship and market relationship), and the interactions betweenformal institution and social reciprocity, put forward five theoretical hypotheses. Thenthe paper based on the hierarchical regression analysis to test the theoreticalhypotheses. Our enterprise data collect from27provinces, by questionnaire survey.Four of the five theory hypotheses are supported by empirical analysis. The researchmainly got the following conclusions:(1)The less complete of formal institutional environment, the more inclinedenterprises are to build and maintain government relationship, the higher the intensityof government relationship.(2)The more complete of formal institutional environment, the more inclinedenterprises are to build and maintain market relationship, the higher the intensity ofmarket relationship.(3)The higher the social reciprocity, the more inclined enterprises are to buildand maintain government relationship and market relationship, the higher the intensityof the government and market relationship.(4) May be due to mutual promotion and constraints between formal institutionand social reciprocity, the interaction between them has not been supported byempirical analysis.Finally, the paper discussed about the conclusions and contribution, analyzed theresearch limitations and future research direction. The research has some implicationsfor the theoretical researchers, governments and enterprises.