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1、AdministrativeScienceQuarterly2017,Vol.62(1)67–104TheDynamicsÓTheAuthor(s)2016Reprintsandpermissions:ofPoliticalsagepub.com/journalsPermissions.navEmbeddednessDOI:10.1177/0001839216657311journals.sagepub.com/home/asq*inChina123HeatherA.Haveman,NanJia,JingSh
2、i,2andYongxiangWangAbstractEconomictransitionsincountriesthatmovefromstateplanningandredistribu-tiontomarketexchangecreatebusinessopportunitiesbutalsouncertainty,becausemanyinterdependentfactors—modesofexchange,typesofproducts,andformsoforganizations—areinf
3、lux.Uncertaintyisevengreaterwhenthecountry’spoliticalinstitutionsremainauthoritarianbecausetheruleoflawisweakandstatebureaucratsretainpowerovertheeconomy.ThisstudyoflistedfirmsinChina,whichhasrecentlyseeneconomictransitionbutpersis-tentauthoritarianism,show
4、sthatinsuchcontexts,firmscanreduceuncer-taintybydevelopingrelationshipswithstatebureaucrats,whichhelpfirmslearnhowstatebureaucraciesoperateandengendertrustbetweenfirmsandbureaucrats.Together,knowledgeandtruststabilizeoperationsandhelpper-suadebureaucratstol
5、ightenregulatoryburdens,grantfirmsaccesstostate-controlledresources,andimprovegovernmentoversight.Ourresultsshowthataseconomictransitionsproceedanduncertaintyincreases,business–statetiesincreasinglyimprovefirmperformance.Wealsoinvestigatetwolikelycon-tingen
6、cies,industryandfirmsize,andtwoimportantcausalmechanisms,accesstobankloansandprotectionfromrelated-partyloans,andshowthatthevalueofbusiness–staterelationsvariesovertime,dependingonthetrajec-toryofbotheconomicandpoliticalinstitutions.Keywords:firmperformance
7、,corporategovernance,topmanagement,socialnetworks,economictransition,China,politicalembeddedness,marketdevelopmentEconomictransitionsfromstateplanningandredistributiontomarketexchangecantakemanypaths(StarkandBruszt,1998;Whitley,1999;Przeworskietal.,*Theauth
8、orsarelistedinalphabeticalorder.1HaasSchoolofBusiness,UniversityofCalifornia,Berkeley2MarshallSchoolofBusiness,UniversityofSouthernCalifornia3SchoolofEconomics,FinanceandMarketing,RMITUniversity,andInt
