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| The Transformation of External Ties into Market-Based Functions in New Ventures |
| ZHANG Feng，HUANG Jiuli，DU Yunzhou |
| 1. Nankai University, Tianjin, China；2. Anhui University of Finance & Economics, Bengbu, Anhui, China |
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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.
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Received: 15 June 2015
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2016, Vol. 13 
