All relationships are not created equal: the effects of inter-organizational relationships on subsidiary’s value at the onset of corporate crises

Jiuchang Wei; Zhi Li; Alexander H. Ziegler; Haipeng (Allan) Chen

doi:10.1007/s10490-025-10060-2

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All relationships are not created equal: the effects of inter-organizational relationships on subsidiary’s value at the onset of corporate crises

Journal article

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All relationships are not created equal: the effects of inter-organizational relationships on subsidiary’s value at the onset of corporate crises

Jiuchang Wei, Zhi Li, Alexander H. Ziegler and Haipeng (Allan) Chen

Asia Pacific journal of management

12/16/2025

DOI: 10.1007/s10490-025-10060-2

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Abstract

Drawing upon the resource dependence theory, we investigate how subsidiaries can leverage their relationships with a parent company and its resources to protect firm value at the onset of a corporate crisis. Analyzing 153 corporate crises befalling publicly listed mixed-ownership enterprises in China from 2008 to 2018, we discover that a formal (e.g., ownership) relationship is a burden, while an informal relationship (e.g., guanxi) serves as buffer, in affecting a listed firm’s market value immediately after a crisis. Additionally, we find the burdening effect of a formal relationship is attenuated. In contrast, the buffering effect of an informal relationship is exacerbated by a parent company’s political ties to the central government. We discuss our contributions to resource dependence theory and practice.

Corporate crisis

Firm value

Guanxi

Ownership

Political ties

Subsidiary

Details

Title: Subtitle: All relationships are not created equal: the effects of inter-organizational relationships on subsidiary’s value at the onset of corporate crises
Creators: Jiuchang Wei - University of Science and Technology of China
Zhi Li - Nanjing Normal University
Alexander H. Ziegler - Wichita State University
Haipeng (Allan) Chen - Tippie College of Business, University of Iowa, Iowa City, IA, United States
Resource Type: Journal article
Publication Details: Asia Pacific journal of management
DOI: 10.1007/s10490-025-10060-2
ISSN: 0217-4561
eISSN: 1572-9958
Publisher: Springer Nature
Grant note: National Natural Science Foundation of China: 72025402, 72504138, 72293573
This research was funded by the National Natural Science Foundation of China grants #72025402, #72504138 and #72293573.
Language: English
Electronic publication date: 12/16/2025
Academic Unit: Marketing
Record Identifier: 9985096043602771

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