Loughborough University
Leicestershire, UK
LE11 3TU
+44 (0)1509 263171
Loughborough University

Loughborough University Institutional Repository

Please use this identifier to cite or link to this item: https://dspace.lboro.ac.uk/2134/18409

Title: Balancing formality and informality in business exchanges as a duality: a comparative case study of returnee and local entrepreneurs in China
Authors: Lin, Daomi
Lu, Jiangyong
Li, Peter Ping
Liu, Xiaohui
Keywords: Formality-informality balance
Institutional differences and institutional dynamics
Returnee and local entrepreneurship
Yin-Yang duality
Issue Date: 2015
Publisher: Cambridge University Press (© The International Association for Chinese Management Research)
Citation: LIN, D. ... et al, 2015. Balancing formality and informality in business exchanges as a duality: a comparative case study of returnee and local entrepreneurs in China. Management and Organization Review, 11 (2), pp.315-342.
Abstract: The management paradigms in the West mainly rely on legal contracts and explicit rules (formality), while the management traditions in the East emphasize social relationships and implicit norms (informality). In an era of ‘West-meets-East’, balancing formality and informality is becoming critical for firms, especially those facing institutional differences in transnational contexts and institutional transitions. In this study, we conducted a comparative multi-case study on returnee entrepreneurs and local entrepreneurs in China. We found that at the early stage of venturing returnee entrepreneurs emphasized formality more than informality, while local entrepreneurs stressed informality more than formality. However, the formality-informality balance among both returnee and local entrepreneurs converged over time in line with the institutional transition in China. Returnee entrepreneurs increased the emphasis on informality (but kept the dominant position of formality), whereas local entrepreneurs gradually shifted from informality to formality. The spatial pattern of asymmetrical balancing and the temporal pattern of transitional balancing are both rooted in the Chinese philosophy of Yin-Yang balancing.
Description: This paper was accepted for publication in the journal Management and Organization Review [Cambridge University Press / © The International Association for Chinese Management Research] and the definitive published version is available online at: http://dx.doi.org/10.1017/mor.2014.2
Version: Accepted for publication
DOI: 10.1017/mor.2014.2
URI: https://dspace.lboro.ac.uk/2134/18409
Publisher Link: http://dx.doi.org/10.1017/mor.2014.2
ISSN: 1740-8776
Appears in Collections:Published Articles (Business School)

Files associated with this item:

File Description SizeFormat
Lin et al MOR-13-002R3 Final edits_with Response.pdfAccepted version212.75 kBAdobe PDFView/Open

 

SFX Query

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.