Publication

This paper investigates the role of personal relationships for doing business in the Greater Pearl River Delta, China. First, it discusses the interplay of formal and informal institutions from the point of view of institutional economics. Second, it describes the institutional environment for doing business in China. Third, it uses data obtained from a survey among executives of Hong Kong electronics SMEs to gain insights into their perceptions on the importance of using personal relationships for business and on the impact of personal relationships on strategic decisions. The results confirm the importance of personal relationships for doing business in the PRD.