Physica A 521 (2019) 9–17

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Physica A
journal homepage: www.elsevier.com/locate/physa

The impact of scholars’ guanxi networks on entrepreneurial

performance—The mediating effect of resource acquisition
∗
Wei Ju a,b , Xiaohu Zhou a , , Shuaibin Wang a
a
University of Science and Technology, Nanjing 210094, Jiangsu, China
b
Taizhou Institute of Sci. &Tech., NUST, Taizhou 225300, Jiangsu, China

highlights

• The different dimensions of guanxi play different effects on entrepreneurial performance.

• Guanxi networks have a significant positive effect on resource acquisition.
• Resource acquisition mediates the relationship between guanxi and performance.

article info a b s t r a c t

Article history: Scholars striving to start new ventures suffer from high failure rates. Most researchers
Received 22 May 2018 believe that guanxi networks motivate entrepreneurial growth, but few have paid any
Received in revised form 23 August 2018 attention to the impact of scholars’ guanxi networks on their entrepreneurial activities.
Available online 17 January 2019
We draw upon social capital theory and the resource-based view to explore the effect and
Keywords: mechanism of scholars’ guanxi networks on entrepreneurial performance in the Chinese
Guanxi networks context. Using survey data from a sample of new ventures in China, we demonstrate
Resource acquisition that the different dimensions of scholars’ guanxi networks, namely family, community,
Entrepreneurial performance and political ties are significantly related to entrepreneurial performance. We also find
Scholars that the positive relationship between guanxi networks and entrepreneurial performance
is mediated by resource acquisition (i.e., human, financial, and customer). Specifically,
family and community ties are positively related to the three resource acquisitions, while
government ties are not positively related to customer resource acquisition. Explanations
and directions for future research are discussed.
© 2019 Published by Elsevier B.V.

1. Introduction

With the acceleration of a new round of global industrial transformation, scholars engaged in innovative research at
universities play an increasingly important role in the transformation of scientific and technological achievements into
practical applications. Academic entrepreneurship plays an essential role in cultivating new growth points in the economy
and improving the quality of economic development, and is thus taken seriously by governments at all levels. It involves such
commercial activities as patent licensing, technology licensing, spin-out companies, cooperative research, and consulting
services [1,2]. Influenced by Confucianism, the Chinese emphasize the utilization of guanxi [3] and are inclined to treat
others differently, depending on their relationship with them [4]. Guanxi is regarded as a universal lubricant helping new
enterprises obtain competitive resources [5]. Studies have shown that guanxi networks, as an essential channel of resource

∗ Corresponding author.
E-mail addresses: juwei@njust.edu.cn (W. Ju), njustzxh@njust.edu.cn (X. Zhou), shuaibin_wang0517@163.com (S. Wang).

https://doi.org/10.1016/j.physa.2019.01.066
0378-4371/© 2019 Published by Elsevier B.V.
10 W. Ju, X. Zhou and S. Wang / Physica A 521 (2019) 9–17

acquisition for Chinese entrepreneurs, have a profound influence on social economy and individual business activities [6],
and the different natures of these networks lead to immensely diversified resources and functions [7]. The latest empirical
research of Burt and his colleagues analyzed entrepreneurs from China, the U.S., and Europe, adopting a unified definition
and operationalized ‘‘guanxi’’ variable. They found that in China, people relying on guanxi to start and run ventures account
for over two thirds of all entrepreneurs, while in the U.S. and Europe the proportion is only one tenth [8]. This indicates that
guanxi, deeply rooted in Chinese society and culture, is essential to the entrepreneurial activities of individuals.
Despite the increasing importance attached to Chinese guanxi and entrepreneurship, the existing studies are far from
satisfactory, which is manifest in both domestic and foreign literature. Firstly, the research subjects of the previous studies
were mostly entrepreneurs of mature enterprises, while few regarded academics in the government system as suitable
subjects, leaving much space for exploration of the success paradigm in academic entrepreneurship. Secondly, the studies
on the indirect effect of guanxi networks on entrepreneurial performance are insufficient. Although the direct effect of
social networks on resource acquisition or entrepreneurial performance has basically been recognized, the mechanism
of the guanxi effect on entrepreneurial performance via resource acquisition has seldom been researched. We focus on
three problems in this study. Firstly, do scholars’ guanxi networks affect their entrepreneurial activities? What are the
characteristics of these networks? Secondly, in a highly uncertain and competitive market, valuable resources determine
whether entrepreneurs can win business opportunities and target clients. Hence, the second problem is to study how
entrepreneurs utilize guanxi to obtain resources needed for entrepreneurship. Thirdly, entrepreneurship theories reveal that
social capital embedded in guanxi is a valuable and unique resource and facilitates the success of entrepreneurship. Therefore,
the third question is how resource acquisition affects the relationship between guanxi networks and entrepreneurial
performance. To answer the above questions, we select entrepreneurs from university science parks, incubators, and maker
spaces as research subjects to explore how guanxi networks affect entrepreneurial performance. The study aims to provide
implications for scholars starting ventures about constructing social relations more rationally and making full use of social
resources to increase their entrepreneurial success rate.

2. Literature review and hypotheses

2.1. Connotations of entrepreneurial resources

According to the resource-based view, resources refer to all useful assets in production, including tangible and intangible
resources such as finance, materials, labor, technology, and organizations [9]. Resources that are valuable, scarce, and
impossible to imitate or replace represent the competitive advantages of an organization [10]. Entrepreneurship refers
to a process, in which an entrepreneur identifies, acquires, and deploys resources to realize value [11]. Entrepreneurial
resources are not simple combinations of various types of resources, but the collection of key resources for the survival of
new enterprises. Although consensus has not been reached on the definition and classification of entrepreneurial resources,
it is commonly believed that they are the foundation of entrepreneurship and the key to success; moreover, different
resources play different roles in this process. Studies have indicated that financial, material, technical, and human resources
are important components of entrepreneurial resources [12–14]. Considering that the entrepreneurial activities of scholars
fall into the category of technological entrepreneurship, entrepreneurs and their core members usually possess technical
resources before the occurrence of their ventures. This study assumes that technical resources are necessary conditions
for technological entrepreneurship. Through further analysis of the research achievements that faithfully reveal the law
of entrepreneurial behavior, it is found that such factors as ‘‘employing the first group of core employees’’, ‘‘getting the
first order’’, and ‘‘obtaining the first external financing’’ are critical to the success of entrepreneurship. These correspond
respectively to the acquisition of key resources of employees, customers, and finance that are necessary for the survival and
development of a new venture. Only through successful accumulation of these resources, can entrepreneurs lead their new
companies into the stage of survival and development.

2.2. Guanxi networks and entrepreneurial performance

As a unique form of social capital in China, guanxi can be derived from various backgrounds shared by individuals,
including kinship, friendship, acquaintanceship, birthplace, surname, etc. [3,15]. In the context of such social characteristics
known as wu lun and ‘‘differentiated modes of association’’ in China [16], guanxi is a combination of family and non-
family, personal and non-personal, emotional and instrumental relations, characterized by familiarity, intimacy, trust, and
reciprocity [4,5,17,18]. In light of this, the center of a Chinese ‘‘guanxi circle’’ in management is family members and family-
like people. The middle layer of this circle is the long-term exchanges between friends for both expressive and instrumental
purposes. The periphery is acquaintances with whom instant return and bargaining in social exchanges are allowed [8].
Therefore, our study analyzes three dimensions of guanxi networks of scholars in China. The first is family ties, mainly
with family members and relatives. The second is community ties, connection with various intermediary agencies, groups,
and societies, considering that in China many professional institutions and academic groups have administration functions
and possess resources needed by entrepreneurs. The third is government ties, mainly with governments and officials,
who are crucial to the growth of new enterprises, offering essential resources and institutional support [19]. In summary,
for entrepreneurs in China, guanxi networks are indispensable factors that bring resources for new enterprises, such as
 W. Ju, X. Zhou and S. Wang / Physica A 521 (2019) 9–17 11

business information, trading contracts, and political resources, compensating for the inadequacies of formal institutions
and improving corporate performance. Compared to those who do not have strong guanxi ties, entrepreneurs who are rich
in guanxi networks may be more likely to succeed. We therefore propose the following hypotheses:
H1: Guanxi networks of scholars relate positively to entrepreneurial performance.
H1a: Family ties relate positively to entrepreneurial performance.
H1b: Community ties relate positively to entrepreneurial performance.
H1c: Government ties relate positively to entrepreneurial performance.

2.3. Guanxi networks and resource acquisition

Entrepreneurship is risky. Scholar-transformed entrepreneurs encounter obstacles not only in thinking mode, and role
shift, but also in lack of resources needed for ventures, such as knowledge, skills, funds, information, and contacts. Further-
more, new companies are often confronted with the crisis of legitimacy. Therefore, an inevitable choice for entrepreneurs
is to use guanxi to acquire human, financial, and customer resources to achieve business goals [20]. Both social capital
theory and resource dependence theory point out that guanxi networks are an important approach for enterprises to acquire
resources for survival and growth, and using guanxi to access critical resources has become the choice of many entrepreneurs.
Compared with social relations in a mature market economy, guanxi in Chinese is unique. This is illustrated by the fact that
during its founding and growth, a new company tends to tackle difficulties (especially resource dilemmas) by means of
guanxi rather than market approaches [21]. Providing access to lower-priced resources and even scarce resources, guanxi
networks have a profound impact on the business activities of individuals and companies. Studies have found that the initial
capital and core managers of Chinese entrepreneurs often come from family or relatives [22–24]; the product technology and
market information are often from professional institutions and scientific research groups; and the construction and use of
government ties have become a crucial factor for a venture’s growth, due to the absence and imperfection of the institution
in economic transition [25,26]. Furthermore, at the heart of guanxi networks is mutual trust, which leads to easier acquisition
of resources. Based on these arguments, we propose the following hypothesis:
H2: Guanxi networks of scholars relate positively to resource acquisition.
H2a: Family ties relate positively to resource acquisition.
H2b: Community ties relate positively to resource acquisition.
H2c: Government ties relate positively to resource acquisition.

2.4. Resource acquisition and entrepreneurial performance

For a new venture, access to resources can play a large part in emergence, growth, and competitive advantage [27,28]. The
short period of creation, small scale, and lack of legitimacy have become major survival obstacles for new companies [29,30].
In China, the two channels of resource acquisition are guanxi networks and the market. Through guanxi, entrepreneurs
acquire technical knowledge from partners and scientific research institutions; they acquire market knowledge from
customers and suppliers to establish their advantages in technology; they create products or services that match the market
demand; and finally they lay the foundation for the improvement of entrepreneurial performance. For technology-based
entrepreneurial ventures, demand for financial resources is large, especially in the early stage. Financial support from angel
investors and venture capital institutions is likely to facilitate the rapid growth of new enterprises and bring substantial
financial returns. The faster the resources are acquired by entrepreneurs, the easier it is to capture market opportunities
and gain better performance. Abundant and heterogeneous resources result in more competitive advantage and better
performance [31]. This means that more resources, especially critical resources, bring more chances for new entrepreneurs
to quickly grasp and realize the value of entrepreneurial opportunities, and thus enhance entrepreneurial performance. So,
we hypothesize the following:
H3: Resource acquisition has a positive relationship with entrepreneurial performance.
H3a: Human resource acquisition has a positive relationship with entrepreneurial performance.
H3b: Financial resource acquisition has a positive relationship with entrepreneurial performance.
H3c: Customer resource acquisition has a positive relationship with entrepreneurial performance.

2.5. Mediating role of resource acquisition

The resource dilemma of entrepreneurs restricts their entrepreneurial behavior, so they need to make full use of available
resources to create value and improve performance. Guanxi networks have a positive impact on resource acquisition, as
discussed above, and the latter enhances entrepreneurial performance. In other words, the effect of guanxi networks on
entrepreneurial performance is most likely to be realized through the mediating of resource acquisition. Based on the
discussion above, we propose the following hypotheses:
H4: Resource acquisition mediates the relationship between guanxi networks and entrepreneurial performance.
H4a: Human resource acquisition mediates the relationship between guanxi networks and entrepreneurial performance.
H4b: Financial resource acquisition mediates the relationship between guanxi networks and entrepreneurial perfor-
mance.
H4c: Customer resource acquisition mediates the relationship between guanxi networks and entrepreneurial perfor-
mance.
To conceptualize these mechanisms, we developed a mediation model (see Fig. 1).
12 W. Ju, X. Zhou and S. Wang / Physica A 521 (2019) 9–17

Fig. 1. The conceptual model.

Table 1
Demographic profile of respondents.
Variable Category N %
Gender Male 154 81.0
Female 36 19.0
Age (years) ≦30 43 22.6
31–40 26 13.7
≧41 121 63.7
Education Bachelor 9 4.7
Masters 135 71.0
Doctorate 46 24.2
Industry High-tech industry 87 45.8
Traditional manufacturing 65 34.2
Creativity and new media 31 16.3
Others 7 3.7
Founding time <1 34 17.9
(years) 1–2 86 45.4
3–6 47 24.7
Location Nanjing 85 44.7
Suzhou 56 29.5
Shanghai 49 25.8

3. Methodology

3.1. Sampling and data collection

The representative entrepreneurs are from various new enterprises in three cities surrounding the Yangtze River Delta:
Nanjing, Suzhou, and Shanghai. Some of these entrepreneurs were academics, while others work at university while
starting businesses. Previous studies have suggested that enterprises established for less than six years are defined as new
enterprises [32]. Questionnaires were distributed as a means of survey. Before the formal investigation, the questionnaires
were modified based on interviews with 18 entrepreneurs. The formal investigation lasted from March 6, 2017 to June 8,
2017. Two methods were used to collect data. First, with the help of local governments, we launched research in 15 selected
business incubators, university science parks, and maker spaces in the three cities. We surveyed 168 entrepreneurial scholars
from 106 ventures and collected 160 completed questionnaires; the effective response rate was 73%. Second, we authorized
6 academic partners from universities in the cities to invite entrepreneurs to fill in the questionnaires, and the completed
electronic versions were sent to us through e-mail. Of the 120 questionnaires received, 54 were declared ineligible because
of incomplete responses, amounting to a 55% effective response rate. The respondents selected through the two methods
amounted to 190, and their demographic profile is shown in Table 1.

3.2. Measurement

Independent variable. For entrepreneurial guanxi networks, we adapted the scales of Guo and Miller [33], Peng and
Luo [6], and Chen [34]. The guanxi network questionnaire consists of the three dimensions of family ties, community ties,
and government ties, involving 9 items. The items were measured by a five-point Likert-type scale ranging from 1 = strongly
disagree to 5 = strongly agree, with higher values indicating greater amounts.
Mediation variable. The existing literature has identified three salient indicators of resource acquisition for early
entrepreneurs, including financial, human, and customer resources. The measurement of resource acquisition followed the
method used by Pfeffer and Salancik [35] and includes 9 items. All items were measured by a five-point Likert-type scale (1
= strongly disagree to 5 = strongly agree).
 W. Ju, X. Zhou and S. Wang / Physica A 521 (2019) 9–17 13

Dependent Variable. In measuring entrepreneurial performance we adapted the scale of Ma and Tan [36]. Based on the
features of scientific and technological enterprises as well as the characteristics of academics, 3 items were designed: income
growth, sales growth, and social reputation. Again, the same five-point Likert-type scale was used for the items.
Control variables. Data were collected for three control variables: age, gender, and education. We controlled for
the respondent’s age because of its influence on career decisions. Age can increase the likelihood of people starting
their own business, however, as people age, their entrepreneurial intentions decline [37]. In this research, age was
measured using a three-point scale (1=‘‘≦30’’, 2=‘‘31–40’’, 3=‘‘≧41’’). The existing literature also identified links between
entrepreneurial performance and individuals’ educational attainments. This variable was also measured using a three-point
scale (1=bachelor, 2=masters, 3=doctorate). Entrepreneurial performance is also associated with gender [38]. Males were
found to be more adventurous in their careers than females. Here we use a dummy variable (1=male, 0=female).
Since each questionnaire came from one respondent, we sought to reduce common method bias. As recommended by
Podsakof et al. [39], we adopted corresponding control measures in research design and statistical analysis. In research
design, we promised participants that their answers would be anonymous, assured them that there are no right or wrong
answers and required that they should answer questions as honestly as possible. For statistical remedies, we applied
Harman’s single-factor test. We subjected all the key variables to a factor analysis and then determined the number of
factors accounting for the variance in the measures. From the exploratory factor analysis of all the unrotated variables,
the percentage of explained common variance of the first factor was 23.61% (Table 2), which means the common method
variance is not a serious problem to the study. In addition, we examined the reliability of the multi-item scales with
Cronbach’s alpha. As show in Table 2, all variables have reliabilities above 0.7. Meanwhile, most factor loadings were greater
than 0.7, indicating that the construct validity was met. In summary, the measure model was assessed to be valid and reliable
so the next step in the analysis could be conducted.

4. Results

We report means, standard deviations, and Pearson correlation coefficients of major variables in Table 3. The results
indicate that the correlations among the key variables in the research were significantly related to each other. These are
consistent with the relevant hypotheses mentioned above. All variance inflation factors (VIFs) were lower than 2 in our
regression models, presenting little probability of multicollinearity.
To test the mediation hypothesis, we follow the procedure recommended by Baron and Kenny [40]. First, it starts with
regressing the dependent variable on the independent variable. Second, the mediator variable is regressed against the
independent variable. Finally, the dependent variable is regressed against both the independent variable and the mediator.
If mediation effect is present, then the effect of the independent variable reduces in size, or even becomes insignificant.
Tables 4–6 show the results of hierarchical multiple regressions. We report the regression results of guanxi networks
and entrepreneurial performance in Table 4. The effects of Models 2–4 reveal that the three dimensions of guanxi networks
have a significant impact on entrepreneurial performance, respectively. Model 5 shows that when family ties, community
ties, and government ties are included at the meantime, guanxi networks still have a significant positive relationship with
entrepreneurial performance. The above results support Hypothesis 1, 1a, 1b, and 1c.
Table 5 shows the regression analysis results of guanxi networks and resource acquisition. Government ties has no
significant impact on customer resource acquisition (β=.073, p>.05). Apart from Hypothesis 2c, Hypothesis 2, 2a, and 2b
have been supported by the data. Overall, there is a significant positive effect of guanxi networks on resource acquisition.
Table 6 reveals the mediating effect of resource acquisition on the relationship between guanxi networks and en-
trepreneurial performance. Model 1 involves only control variables, and Model 2 tests the effect of various dimensions of
guanxi on entrepreneurial performance. On the basis of the two models, human, financial, and customer resource acquisition
are added respectively to the analysis. Compared with Model 2, the results of Models 3–5 indicate that, human resource
acquisition (β=.129, p<.001), financial resource acquisition (β=.087, p<.001), and customer resource acquisition (β=.261,
p<.001) have a significant positive mediating effect, respectively. Therefore Hypothesis 3 has been verified. In Model 6, when
the three types of resources above are included at the meantime, each of them has a significant effect on entrepreneurial
performance, while human resource acquisition exerts a negative effect (β= −.142, p<.001). These findings provide support
for Hypothesis 4.
To further test Hypothesis 4 (the mediation of resource acquisition), following the advice of Mackinnon et al. [41],
we performed the bootstrap test. We used the bootstrapping method combined with macros recommended by Preacher
et al. [42] We bootstrapped 5000 samples to obtain a 95% bias-corrected confidence interval for the mediation effect. The
results in Table 7 show that the indirect effect of guanxi networks on entrepreneurial performance via resource acquisition
was significantly positive (ab = 0.126, 95% CI = [0.019, 0.185]). The results again support Hypothesis 4.
We apply social capital theory and the resource-based view to explore the effect and mechanism of academics’ guanxi
networks on entrepreneurial performance in the Chinese context. The findings are stated as follows: Firstly, relatives, friends,
various professional groups, and government agencies may all become channels for entrepreneurs to obtain resources.
The characteristics of guanxi affect the types and levels of acquired resources. The three types of key resources needed
by entrepreneurs are significantly related to their family ties, which proves once again that Chinese guanxi networks are
characterized by acquaintance, kinship, and friends. Community ties also have a positive effect on human, customer, and
financial resource acquisition, revealing the potential of various academic societies and research institutions to bring value
14 W. Ju, X. Zhou and S. Wang / Physica A 521 (2019) 9–17

Table 2
Results of reliability and validity test.
Variable Item Factor
1 2 3 4 5 6 7
1 Family ties The support from Family members and relatives 0.75
motivated me to start my own business.
I received helpful advice about entrepreneurship 0.69
from my family and relatives.
I received financial support from family and 0.86
relatives at the early stage of my business.
2 Community ties I actively participate in various processional 0.90
research institutions (guilds and associations).
I can acquire useful product and technology 0.83
information from professional institutions.
I have many friends who share the same 0.70
professional ideals.
3 Government ties I know many people in government departments 0.88
and ask them for help when necessary.
I receive venture or tax subsidies from the 0.76
government.
I meet people from government departments during 0.94
festivals.
4 Financial resource I can get the needed amount of capital from my 0.74
acquisition friends and relatives.
It is not difficult for me to get capital from venture 0.70
capital firms or banks.
I can acquire information about financial support 0.75
policies from government departments.
5 Human resource Friends and relatives often recommend talents of 0.81
acquisition various types.
I can get access to the needed talents and 0.64
information from professional institutions.
I can get access to the needed talents and 0.82
information from government departments.
6 Customer resource Friends and relatives often recommend customer 0.91
acquisition resources.
I can get access to customer resources and 0.78
information from various research institutions,
organizations and many other channels.
I can get access to information about customer 0.86
resource or market demand from the government.
7 Entrepreneurial I have obtained stable orders and realize stable 0.78
performance increase of operating income.
I have achieved the goal set at the beginning of my 0.81
venture.
Peers and friends are highly complimentary about 0.83
my entrepreneurship.
Cronbach alpha 0.72 0.84 0.90 0.88 0.93 0.89 0.77
Total of the accounted variance (%) 23.61 32.78 40.20 48.10 55.69 67.95 74.23

Table 3
Descriptive statistics and correlations.
Mean SD 1 2 3 4 5 6 7 8 9 10
1 Gender 1.18 0.46 1
2 Diploma 0.74 0.31 −.013* 1
3 Industry 3.25 0.79 .017* .021* 1
4 Family ties 2.67 1.28 .026* −.087* .109* 1
5 Community ties 3.02 1.37 .057* .428** .423** .349** 1
6 Government ties 2.90 1.01 .034* .306** −.105* .402** .260 1
7 Human resource acquisition 3.81 1.36 .024 .394** .079 .238** .336** .328** 1
8 Financial resource acquisition 3.16 1.43 .160* .271** .115 .36** .405** .246** .270 1
9 Customer resource acquisition 3.48 1.52 .019* .216** .017 .286* .320** .112** .015 .178 1
10 Entrepreneurial Performance 3.68 1.67 .204** .322** .269* .340** .142** .386** .237** .352** .240** 1

***p < 0.001; N=190.

*p < 0.05.
**p < 0.01.
 W. Ju, X. Zhou and S. Wang / Physica A 521 (2019) 9–17 15

Table 4
Regression results of Guanxi networks on entrepreneurial performance.
Variable Entrepreneurial Performance
Model 1 Model 2 Model 3 Model 4 Model 5
Gender .086** .078** .057** .012** .064**
Diploma .142 .184 .160 .086 .097*
Industry −.072 −.064 −.058 −.0102 −.078
Family ties .412*** .344***
Community ties .406*** .428***
Government ties .368** .510**
R2 .405 .426 .423 .419 .432
Adjusted R2 .382 .412 .394 .412 .397
∆R2 — .021 .018 .014 .027
F 6.732*** 12.015*** 14.042*** 9.556*** 10.257***

*p < 0.05.
**p < 0.01.
***p < 0.001; N=190.

Table 5
Regression results of Guanxi networks on resource acquisition.
Variable Human resource acquisition Financial resource acquisition Customer resource acquisition
Model 1 Model 2 Model 3 Model 4 Model 5 Model 6
Gender .069 .042 .037 .028 .016 .102
Diploma .125 .094 .076 .052 .064 .077
Industry −.016 .015 −.025 .061 −.156 .120
Family ties −.314*** .430*** .294**
Community ties .408*** .410** .326***
Government ties .225** .336** .073
R2 .266 .324 .168 .272 .224 .231
Adjusted R2 .225 .297 .146 .233 .201 .202
∆R 2
— .058 — .104 — .007
F 8.744*** 12.366*** 6.005*** 15.306*** 4.061*** 9.140***

*p < 0.05.
**p < 0.01.
***p < 0.001; N=190.

Table 6
Mediation analysis of resource acquisition.
Variable Entrepreneurial performance
Model 1 Model 2 Model 3 Model 4 Model 5 Model 6
Gender .086 .064** .134 .097 .085 .0216
Diploma .142 .097* .065 .0126 .095 .0131
Industry −.072 −.078 −.080 −.178 −.074 −.165
Family ties .344*** .214** .149** .162** .209**
Community ties .428*** .135** .068** .073** .057*
Government ties .510** .097** .215* .113** .194**
Human resource acquisition .129*** −.142***
Financial resource acquisition .087*** .226***
Customer resource acquisition .261*** .203***
R2 .405 .432 .469 .484 .473 .482
Adjusted R2 .382 .397 .356 .403 .391 .411
∆R2 — .027 .037 .052 .041 .050
F 6.732*** 10.257*** 16.322*** 13.566*** 9.022*** 8.30***

*p < 0.05.
**p < 0.01.
***p < 0.001; N=190.

and advantages to scholars. The effect of political ties on customer resource acquisition is not remarkable, which may be
due to the reform measures adopted after the 18th National Congress of the Communist Party of China, such as ‘‘power
must be carried out openly and transparently’’ and ‘‘the market should be allowed to play the decisive role in allocating
resources’’, and on the other hand may be due to the scale of the enterprises interviewed. Secondly, the study shows
that the effect of each dimension of guanxi networks on entrepreneurial performance has distinct characteristics due to
the mediation of resource acquisition. Specifically, financial and customer resources have significant positive relationships
with entrepreneurial performance, while human resources are negatively related to it, which may result from the excessive
16 W. Ju, X. Zhou and S. Wang / Physica A 521 (2019) 9–17

Table 7
Bootstrapped indirect effect results of the mediation of resource acquisition.
Model Boot indirect effect Boot SE LL95%CI UL95%CI Boot z Boot p
Guanxi network (via resource .126 .052 .019 .185 2.640 .005
acquisition) on
entrepreneurial performance

CI=confidence interval; LL=lower limit; UL=upper limit; *p<0.05; **p<0.01; N=190.

embedding of family relationships that affects the operation of business and inhibits entrepreneurship performance. It means
that entrepreneurs should be selective in building social relations, thereby enhancing the quality of resource acquisition.

5. Conclusions and future work

This study contributes to the implementation of innovation and entrepreneurship policies and government reforms.
Firstly, to encourage scholars engaging in entrepreneurship, it is important to optimize policy implementation. At present,
a large number of scientific and technological outcomes are lying idle due to the lack of reform in systems and mechanisms.
In the future, it is necessary to further promote reform in public institutions, improve the effectiveness of policy imple-
mentation, release the entrepreneurial vitality of knowledge innovators, and facilitate the transfer and transformation of
technological achievements. Secondly, it is necessary to streamline administration and delegate power, create a healthy
ecological environment for entrepreneurship, allow the market to allocate resources, prevent guanxi from being a link
of interest transference, and build a new type of government–business interaction characterized by ‘‘intimacy’’ and
‘‘transparency’’. Thirdly, for scholars interested in starting ventures, it is essential to establish a ‘‘core circle of contacts’’.
Social relations play a vital role in promoting the growth of entrepreneurship. Acquainting various contacts with a clear
purpose not only helps to cultivate entrepreneurial awareness and entrepreneurship, but also facilitates the learning of
necessary business skills and the accumulation of knowledge and resources for entrepreneurship.
While this study provides several contributions to the existing literature, its limitations should be noted. First, we have
not explored the effect of the different nature of guanxi networks on entrepreneurial performance. In the context of China,
‘‘intra-system’’ relationships and ‘‘out-of-system’’ relationships have different effects on the formation of scholars’ distinct
cognition of entrepreneurship. ‘‘Intra-system’’ refers to organizations or groups that benefit from being representatives of
government power or relying on state-owned assets, including the typical groups [43], such as colleges and universities.
The use of ‘‘Intra-system’’ relationships for entrepreneurship often brings cross-sector resources and benefits [44] and
contributes to the success of entrepreneurs. In the future, further analysis can be conducted on the effect of resource
acquisition imposed by scholars’ guanxi networks of different natures and by different dimensions of the networks, as well
as their respective impact on entrepreneurial performance. Second, the research samples are from Jiangsu and Shanghai.
Compared with the northeast and western China, these are regions where China’s reform and opening up policy started
quickly and have less government intervention. Thus, entrepreneurs from more regions can be included to expand the
sample scale and further study interrelation between the above variables. Third, this study did not consider the impact of
other factors such as institutional environment, while existing studies have indicated that institutional environment affects
resource acquisition and entrepreneurial outcomes. With these factors taken into account, more valuable findings may be
realized.

Acknowledgments

We wish to thank the Policy Guidance Program of Science and Technology Department of Jiangsu Province of China
"Study on the Impact of Scientific and Technological Talent Policy Practice on the Choice of Scholars’ Entrepreneurial
Path" (No.BR2018026), Philosophy and Social Science Fund Project of Jiangsu Provincial Education Department of China
(No.2018SJA2096), National Natural Science Foundation of China (No.71672084). We also wish to acknowledge the valuable
contributions of the numerous companies and individuals who participated in the interviews and surveys.

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