Responses to alliance partners’ misbehavior and firm performance in China: the moderating roles of Guanxi orientation

How can firms respond when their partners conduct misbehaviors? This study identifies two types of strategy: identity- and event-based, which can reduce either identity or efficiency uncertainty and take effect within different social contexts. Based on 457 events of misbehavior from Chinese equity-based alliance 2001–2013, we find that identity accommodation positively while event defense negatively affects firm performance. In regions with...