Abstract
In many emerging countries, firms face institutional “voids” that raise the difficulty and cost of doing business. In this study, we examine a unique mechanism that may address those voids: partner surname sharing based on clan identity. Using unique data merged from multi-sources and manually collected from China, we find that firms registered in the region with a stronger clan culture will be more likely to trade with supply chain partners with the same surname. This positive effect is moderated by the level of regional marketization. We also show that such taste-based selection leads to double sword economic consequences for the focal firm. Therefore, we shed new light on the supply chain-level implications of clan culture, an Asian cultural-specific topic that has received scant attention in the marketing and supply chain literature.
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