Social networks, institutional development, and entrepreneurship in China

Bibliographic Data

ID24225670
AuthorsJing Cai (0000-0001-6889-0685, Southwestern University of Finance and Economics), Jun Du (0000-0002-7164-4159, Aston University), G Wood (0000-0001-9709-1823, Western University, Canada), Dayong Zhang (0000-0001-8722-176X, Southwestern University of Finance and Economics)
Year2026
Publication date2026-10-14
Open AccessYes
TypeARTICLE
VenueSociology (JOURNAL)
Journal identifiersISSN: 0038-0385 • E-ISSN: 1469-8684
PublisherSAGE Publications (PUBLISHER • US)
DOI10.1177/00380385261481653
OpenAlexW7221830506
LanguageEN
References cited25

This paper explores how social network building, in functioning as an informal institutional mechanism, plays an important role in settings where rule-based formal institutions are incomplete or uneven in their coverage. Taking gift-giving as a proxy for social network investment, this study draws on a nationally representative household survey in China to examine its linkages with entrepreneurship. The results reveal a positive association between investing in social networks and both entrepreneurial participation and success. This relationship is statistically significant and robust against a battery of tests. By including regional institutional development in the empirical model, the interactions between different institutional layers are evaluated. Overall, this research indicates that stronger institutional development defines the boundary conditions of social network building in China.

China · entrepreneurial success · Entrepreneurship · Gift giving · informal institutions · institutional development · Social networks · China's Socioeconomic Reforms and Governance · Entrepreneurship Studies and Influences · Social Capital and Networks