Guanxi Redundancy,Organizational Legitimacy And New Venture Performance

Entrepreneurial activities in China have breakthrough growth and all types of start-ups have sprung up since the advance of �widespread entrepreneurship and innovation� in recent years.But entrepreneurial activity is considered to be the lowest successful activity and global entrepreneurship failure rate as high as 70% according to statistics.China's small and medium-sized enterprises have a lack of innovation potential,narrow growth space and short life which is far below the international level generally.Enterprise obtains various resources through firm's network so as to improve survival and growth space.China is a representative relationship society.GUANXI redundancy is inevitably generated by the relationship between diversity and repeatability among organizations and GUANXI redundancy shows a paradox.On the one hand,new ventures have more uncertainty.GUANXI redundancy helps to buffer network risk,raises business survival rate,and improves enterprise performance further.On the other hand,the construction of network relationship needs cost and the redundant tasks waste resources.Both of them do against efficiency principle.Based on this,the article studies the impact of GUANXI redundancy on entrepreneurial performance from the perspective of firm's network.This paper argues that enterprises need to obtain organizational legitimacy through the relationship network.At the same time,this article discusses the mediating role of organizational legitimacy in relationship GUANXI redundancy and firm performance via introducing the organizational legitimacy variable.Firstly,this paper defines the related concepts of GUANXI redundancy,reviewed the research status of GUANXI redundancy,organizational legitimacy and business performance,and summarizes the method of performance evaluation.What GUANXI redundancy and organizational legitimacy are important to Enterprise is proposed from the Chinese context.A theoretical model of the relationship among GUANXI redundancy,organizational legitimacy and performance of new ventures is constructed based on the analysis of social network theory and institutional theory.Then the enterprise in the high tech zone of Taiyuan,Shanxi is selected to be the sample collection.The comprehensive evaluation index system is established by questionnaire survey,export consultation,brainstorming and literature reference.Next,this paper designs questionnaire based on index system optimized and filtered,and then obtains the relevant data of questionnaire survey.Finally,the paper tests and verifies the relationship among GUANXI redundancy,organizational legitimacy and performance by using multivariate statistical regression analysis,and then draws the conclusion.The results of the study shows that there is an inverted U shaped relationship between GUANXI redundancy and new venture performance.The relationship between GUANXI redundancy and performance is positively related in a certain range.The higher the GUANXI redundancy,the worse the performance when exceed a certain range.Organizational legitimacy is positively related to corporate performance.GUANXI redundancy is positively related to organizational legitimacy.Besides,the organizational legitimacy is part of the intermediary role in the relationship between GUANXI redundancy and performance.The GUANXI redundancy not only directly influences performance but also indirectly influences performance through organizational legitimacy.Finally,this paper puts forward the limitations and prospects for further research.