Determinants of effective client entertainment in China: a transaction governance approach

Determinants of effective client entertainment in China: a transaction governance approach PurposeThis paper aims to take an economic transaction governance approach to explore the determinants for the effectiveness of the social practice of client entertainment in facilitating business relationships in China.Design/methodology/approachThe analysis is based on a broader theoretical framework which posits that exchange relationships are regulated through a combination of market, legal and social relational mechanisms and client entertainment plays a governance role by reinforcing social relational governance to regulate the behaviors of economic actors. Upon this framework, this study proposes that the social behavioral features of client entertainment affect the effectiveness of client entertainment in facilitating exchange relationships and that time moderates such effects. These hypotheses were tested on survey data collected from a sample of Chinese sales managers.FindingsEmpirical results indicate that the effectiveness of client entertainment in facilitating exchange relationships is associated with its social behavioral features that could reinforce social relational governance, including intensity (i.e. value and frequency) and format (i.e. intimacy and observability) of entertainment activities, and the time factor plays a moderating role.Practical implicationsThis study can potentially help policymakers to regulate client entertainment, and business practitioners to manage entertainment spending, more effectively and efficiently without causing legal and ethical problems.Originality/valueThis is the first study that takes an economic transaction governance perspective to directly explore how the social practice of client entertainment plays a constructive role in China’s economic life and what factors affect its effectiveness in playing such a role. It offers guidelines for policymakers, business managers and future research to manage and study this practice. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of Asia Business Studies Emerald Publishing

Determinants of effective client entertainment in China: a transaction governance approach

Journal of Asia Business Studies, Volume 12 (4): 20 – Dec 10, 2018

Loading next page...
 
/lp/emerald-publishing/determinants-of-effective-client-entertainment-in-china-a-transaction-2rGUR03Tcm
Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
1558-7894
DOI
10.1108/JABS-02-2017-0026
Publisher site
See Article on Publisher Site

Abstract

PurposeThis paper aims to take an economic transaction governance approach to explore the determinants for the effectiveness of the social practice of client entertainment in facilitating business relationships in China.Design/methodology/approachThe analysis is based on a broader theoretical framework which posits that exchange relationships are regulated through a combination of market, legal and social relational mechanisms and client entertainment plays a governance role by reinforcing social relational governance to regulate the behaviors of economic actors. Upon this framework, this study proposes that the social behavioral features of client entertainment affect the effectiveness of client entertainment in facilitating exchange relationships and that time moderates such effects. These hypotheses were tested on survey data collected from a sample of Chinese sales managers.FindingsEmpirical results indicate that the effectiveness of client entertainment in facilitating exchange relationships is associated with its social behavioral features that could reinforce social relational governance, including intensity (i.e. value and frequency) and format (i.e. intimacy and observability) of entertainment activities, and the time factor plays a moderating role.Practical implicationsThis study can potentially help policymakers to regulate client entertainment, and business practitioners to manage entertainment spending, more effectively and efficiently without causing legal and ethical problems.Originality/valueThis is the first study that takes an economic transaction governance perspective to directly explore how the social practice of client entertainment plays a constructive role in China’s economic life and what factors affect its effectiveness in playing such a role. It offers guidelines for policymakers, business managers and future research to manage and study this practice.

Journal

Journal of Asia Business StudiesEmerald Publishing

Published: Dec 10, 2018

There are no references for this article.

You’re reading a free preview. Subscribe to read the entire article.


DeepDyve is your
personal research library

It’s your single place to instantly
discover and read the research
that matters to you.

Enjoy affordable access to
over 18 million articles from more than
15,000 peer-reviewed journals.

All for just $49/month

Explore the DeepDyve Library

Search

Query the DeepDyve database, plus search all of PubMed and Google Scholar seamlessly

Organize

Save any article or search result from DeepDyve, PubMed, and Google Scholar... all in one place.

Access

Get unlimited, online access to over 18 million full-text articles from more than 15,000 scientific journals.

Your journals are on DeepDyve

Read from thousands of the leading scholarly journals from SpringerNature, Elsevier, Wiley-Blackwell, Oxford University Press and more.

All the latest content is available, no embargo periods.

See the journals in your area

DeepDyve

Freelancer

DeepDyve

Pro

Price

FREE

$49/month
$360/year

Save searches from
Google Scholar,
PubMed

Create folders to
organize your research

Export folders, citations

Read DeepDyve articles

Abstract access only

Unlimited access to over
18 million full-text articles

Print

20 pages / month

PDF Discount

20% off