The impact of scholars’ guanxi networks on entrepreneurial performance—The mediating effect of resource acquisition

Abstract

Scholars striving to start new ventures suffer from high failure rates. Most researchers believe that guanxi networks motivate entrepreneurial growth, but few have paid any attention to the impact of scholars’ guanxi networks on their entrepreneurial activities. We draw upon social capital theory and the resource-based view to explore the effect and mechanism of scholars’ guanxi networks on entrepreneurial performance in the Chinese context. Using survey data from a sample of new ventures in China, we demonstrate that the different dimensions of scholars’ guanxi networks, namely family, community, and political ties are significantly related to entrepreneurial performance. We also find that the positive relationship between guanxi networks and entrepreneurial performance is mediated by resource acquisition (i.e., human, financial, and customer). Specifically, family and community ties are positively related to the three resource acquisitions, while government ties are not positively related to customer resource acquisition. Explanations and directions for future research are discussed.