Relationship Network, Bank Credit And New Venture Performance

As the gradual development of Chinese entrepreneurial economy,and also the implementation of the strategy of innovation and entrepreneurship,the increasingly active entrepreneurial activities has become an important endogenous forces of economic and social development.In the entrepreneurial process entrepreneurs promote economic and social development through discovering and exploiting market opportunities,and integrating entrepreneurial resources creatively,thus enhancing the technological level and production efficiency as well creating large numbers of employment and wealth.However from the practical view of enterprises and entrepreneurs comparatively,new ventures are facing serious financial constraints while they have an enormous social and economic benefits,especially the private SMEs have a certain liability when they confront to formal financing whose majority is bank credit. Based upon the Chinese cultural context and the background of transitional economy, this paper attempts to interpret the relationship, interaction and mechanism among relationship network, bank credit and new venture performance.This article has six chapters:First chapter is introduction, this chapter provides the research background and importance, on the basis of which we induce the main content and framework of this article.The second chapter is literature review. Rearch Model and Hypothesis are argued in the third chapter. According to the previous literatures, we try to explore the relationship among the type of Guanxi of entrepreneurs in China, the attributes of bank credit and the performance of new ventures. Rooted on the research goal, we provide our research model and hypothesis of this article.The fourth chapter of this paper is research design and the method of measurement of the three variables. The fifth chapter is results of hypothesis test. This chapter first analyzes the structure and reliability and validity of our questionnaire to make sure it reliable and validate, then our research hypothesis are tested by this questionnaire. Finnaly, we get our conclusions.That is, through an empirical study to 195 effective sample enterprises, this paper conclude::(1)Market-based and nonmarket-based networking both positively and significantly effect the four characteristics of banking finiancing. (2)Compared with nonmarket-based relationship, market-based relationship is more influentical on acquisitiveness of banking financing, but less on expeditiousness, cheapness and sufficiency-timeness. (3) The four characteristics of banking finiancing significantly and positively influence on innovation performance and short-term performance. Futhermore, cheapness shows more influence on innovation performance and for short-term and long-term performance, acquisition is more influencial.(4)In contrast with nonmarket-based relationship, market-based relationship shows greater influence on the performance of new ventures. Cheapness and acquisitiveness mediate the relationship between markt-based relationship and the performance of new ventures.There are three ways among market-based relationship,bank credit and new venture performance.One is market-based relationship--cheapness of a banking financing--innovation performance; One is market-based relationship--acquisitiveness of banking financing-- short-term performance; Another is market-based relationship--acquisitiveness of banking financing--long-term performance..