Abstract It is of the key importance to develop market-based functions in terms of innovation and marketing but not excessively rely on personal relations or emotions, if a new venture pursues a sustainable development. The negative effects of managerial ties and the requirements of China’s transition into market mechanism demand an increasing role of market-based functions. There are usually two pathways to develop market-based assets, i.e., external ties (business and political) and internal investment (R&D and marketing intensity). The results illustrate a substitute not complementary relationship of the two strategies. Furthermore, managerial discretion can promote their complementarity. The results also illustrate an inverted U curvilinear relationship between ties and market-based assets.
2016, Vol. 13 
