It seldom happens that new firms, new industries, and new business systems need to be developed simultaneously. This, however, is the situation in transition economies such as China. Irrespective of product and technology used, incentives and governance structures need to be formulated that give business endeavours an organisational form. The survivability of firms depends further on the ability to start and maintain long-term business relations between contracting parties, while only a broad consensus within the community of entrepreneurs and firms on the procedures that co-ordinate business relations and sanctions transgression promises a decline in transaction costs sufficiently enough to trigger off the quick expansion of markets.

Additional Metadata
Keywords China, business networking, economic development, government, transition
Publisher Erasmus Research Institute of Management (ERIM)
Persistent URL hdl.handle.net/1765/150
Citation
Krug, B., & Belschak, F.D.. (2001). Combining Commerce and Culture (No. ERS-2001-84-ORG). Erasmus Research Institute of Management (ERIM). Retrieved from http://hdl.handle.net/1765/150