Search results

1 – 10 of over 2000
Click here to view access options
Article
Publication date: 9 May 2016

Steven Tam

This article reveals a managerial issue that multinational corporations (MNCs) in China are at a strategic crossroad where their employees are competing with the same…

Abstract

Purpose

This article reveals a managerial issue that multinational corporations (MNCs) in China are at a strategic crossroad where their employees are competing with the same sources of guanxi networks for different business deals simultaneously.

Design/methodology/approach

Triggered by a real company case in China and guided by a literature review on business guanxi, the author bridged them into a specific inquiry, as little was known and should be further examined.

Findings

The author identified a paradoxical/applied scenario in MNCs between the use of guanxi and overall firm performance damaged by overusing it.

Research limitations/implications

Empirical studies are deemed necessary to seek more understanding between the role of guanxi and MNCs in China.

Practical implications

Guanxi is not a straightforward guarantee of business achievements in China. Management should note the influence of its actors – own employees – who can potentially diminish the positive returns of guanxi on overall firm’s achievements because of non-obvious interplays among employees and “contacts” on the overlapping guanxi networks. The larger the organisation, the higher the risk is.

Originality/value

This article proposes a new line of thoughts for practitioners about the effect of business guanxi on overall firm performance and serves as a starting point for academics to explore empirical research. The concept of overlapping guanxi networks is institutionalised and discussed. A three-step rule is also suggested for MNCs as a basic solution.

Details

Journal of Chinese Human Resource Management, vol. 7 no. 1
Type: Research Article
ISSN: 2040-8005

Keywords

Click here to view access options
Article
Publication date: 14 December 2021

Liang-Hung Lin and Yu-Ling Ho

By distinguishing opportunism-based and bounded rationality-based transaction costs, the study examines how firms use equity/relational governance and boundary spanners'

Abstract

Purpose

By distinguishing opportunism-based and bounded rationality-based transaction costs, the study examines how firms use equity/relational governance and boundary spanners' guanxi to govern their exploration alliances in a transaction cost economizing way.

Design/methodology/approach

This study used a survey methodology for data collection, and the sample consists of 150 exploration alliances formed by large Taiwanese information and electronic firms.

Findings

Findings of this study show that exploration alliances incur considerable transaction costs and require high-level equity control and relational governance. The positive exploration of alliance-equity ownership relationship will be weakened by boundary spanners' guanxi when guanxi serves to harmonize conflicts and mitigate opportunism-based transaction costs, thereby reducing the need for using costly equity ownership to govern exploration alliances. In contrast, the positive exploration alliance-relational governance relationship will be amplified when guanxi becomes a source of legitimacy in the Chinese guanxi institution. This relation-augmenting effect will drive more relational governance because guanxi and relational governance together allow alliance managers to obtain sufficient legitimacy in the formation of a common dominant frame, thereby mitigating bounded rationality-based transaction costs.

Originality/value

By distinguishing various moderating effects of boundary spanners' guanxi and separating transaction costs into two forms, this study contributes to the existing literature as well as advances our understanding of alliance governance decisions in the Chinese business environment.

Details

Cross Cultural & Strategic Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2059-5794

Keywords

Click here to view access options
Article
Publication date: 22 November 2021

Tsu-Wei Yu

This study aims to use a social exchange perspective to investigate the influence of organizational justice on organizational citizenship behavior (OCB).

Abstract

Purpose

This study aims to use a social exchange perspective to investigate the influence of organizational justice on organizational citizenship behavior (OCB).

Design/methodology/approach

Survey and interview data were collected from a sample of insurance firm sales representatives in Taiwan. Structural equation modeling was deployed to explore the relationship between organizational justice, trust, supervisor–subordinate guanxi and OCB.

Findings

The findings offer important theoretical, managerial and social implications for life insurers’ human resource managers.

Practical implications

Organizational justice is a primary influence on OCB, which is connected with the underlying mediating mechanism of trust (trust in supervisor and trust in subordinate) and supervisor–subordinate guanxi (i.e. off-the-job activities).

Social implications

Subordinates can enhance guanxi with their supervisors to create a more harmonious working environment, creating mutual trust. The results suggest that supervisor–subordinate guanxi is based on long-term social exchange. How to balance fairness and efficiency is an import question for decision-makers.

Originality/value

This study’s examination of the role of trust and supervisor–subordinate guanxi in mediating the relationship between organizational justice and OCB expands the organizational behavior literature into a different industry (life insurance) and cultural context (Taiwan).

Details

Management Research Review, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8269

Keywords

Click here to view access options
Article
Publication date: 1 November 2021

Muhammad Bilal, Umair Akram, Hassan Rasool, Xiaoyan Yang and Yasir Tanveer

In the recent decade, social media popularity and growth have boosted the development of social commerce (SC). This study aims to explore the significant impact of guanxi

Abstract

Purpose

In the recent decade, social media popularity and growth have boosted the development of social commerce (SC). This study aims to explore the significant impact of guanxi (关系) elements (ganqing 感情, renqing 人情 and xinren 信任) on online purchase intentions. Furthermore, this study investigated the moderating role of social support between electronic word-of-mouth (eWOM) and online purchase intentions.

Design/methodology/approach

An online survey was conducted on 309 consumers who had online purchasing experience through WeChat, a famous social media application in China. Structural equational modeling was used to test all hypotheses.

Findings

The results indicate that guanxi elements are positively related to eWOM, affective attitude and online purchase intentions in SC. Additionally, social support has a significant moderating role between eWOM intention and online purchase intention.

Practical implications

Considering the effects of guanxi elements on eWOM affective attitude and online purchase intention in Chinese SC, online retailers are advised to carefully develop their marketing strategies to retain and attract new consumers. Furthermore, online retailers can use the findings from this study to understand the consequences when online purchase intention is strongly influenced by guanxi elements.

Originality/value

This research extends the current literature by applying the notion of guanxi components to the sense of SC and relating the notion of guanxi components and consumer decisions. The results show an understanding of the reality by which guanxi elements may affect the intention of eWOM sharing and boost online purchase intention.

Details

International Journal of Quality and Service Sciences, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1756-669X

Keywords

Click here to view access options
Article
Publication date: 27 September 2021

Wen-Kuei Wu, Hsiao-Chung Wu and Chih-Sung Lai

This study aims to explore how a buyer's perceived buyer-seller (B-S) guanxi facets (i.e. ganqing, renqing and mianzi) and guanxi positions (i.e. zi-ji-ren, shou-ren and…

Abstract

Purpose

This study aims to explore how a buyer's perceived buyer-seller (B-S) guanxi facets (i.e. ganqing, renqing and mianzi) and guanxi positions (i.e. zi-ji-ren, shou-ren and sheng-ren) affect the seller's influence effectiveness (SIE) and purchase intention (PI) in social commerce.

Design/methodology/approach

This study conducted an online survey in three cities of Taiwan and collected a total of 364 data. The structural equation modeling and cluster analysis were used to test research hypotheses.

Findings

The results indicate that (1) each guanxi facet exerts a different and positive impact on SIE, but only one guanxi facet – renqing – helps improve PI, (2) guanxi facets can be used to predict the buyer's perceived guanxi position toward the seller, (3) the effect of guanxi facets on SIE and PI varies across B-S guanxi positions and (4) the SIE positively mediates effects of guanxi facets on the PI.

Originality/value

This study demonstrates the individual effect of each guanxi facet on SIE and PI and affirms the implicit guanxi position features guanxi facets and determines the buyer's perceived SIE and PI as well. To the best of our knowledge, these findings are rarely proposed in previous research and are beneficial for understanding the guanxi mechanism in social commerce.

Details

Asia Pacific Journal of Marketing and Logistics, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1355-5855

Keywords

Click here to view access options
Book part
Publication date: 16 August 2014

Anna Kaunonen

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have…

Abstract

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have developed based on the knowledge and cultural context of the Western world. Several researchers note that national culture may have an impact on international industrial buyer-seller relationships. Including culture in the models is highly important, especially as the business environment is increasingly more global and different countries have different business cultures. The goal of this paper is to define the most suitable industrial buyer-seller relational process models for describing relationships in various contexts. The paper includes a through literature review and a single case study in order to reach this objective. A new state theory model evolved during the research. It consists of two beginning states: searching and starting; four purely middles states: constant/static, decline, growth, and troubled; and a purely end state: termination. The state of dormant/inert is both a middle state and an end state, that is, when the relational actors are not in contact does not mean that the relationship has ended, but instead, for example, new legislation may have been implemented, which requires the actors to evaluate their relationship and its future. A relationship goes through the two beginning states in the order mentioned above, but after that, any state may occur.

Details

Advances in Business Marketing & Purchasing
Type: Book
ISBN: 978-1-78190-858-7

Keywords

Click here to view access options
Book part
Publication date: 1 October 2015

Yuedong Li, Anna M. Rose, Jacob M. Rose and Fengchun Tang

This study examines the effects of incentive compensation and guanxi, a type of informal personal relationship between people, on the objectivity of Chinese internal…

Abstract

Purpose

This study examines the effects of incentive compensation and guanxi, a type of informal personal relationship between people, on the objectivity of Chinese internal auditors. Given that the objectivity of internal auditors is essential for promoting financial reporting quality, it is important to investigate the effectiveness of internal audit functions, especially in emerging markets where the corporate governance mechanisms designed to promote objectivity are less mature.

Methodology/Approach

The research employs a 2 × 2 between participants experiment with 116 graduate accounting student participants.

Findings

After controlling for internal auditors’ ethicality, we find that close-guanxi between management and internal auditors and incentive compensation in the form of bonuses based upon meeting earnings targets both have the capacity to impair the objectivity of Chinese internal auditors. Participants were more tolerant of management’s attempts to manage earnings when there was close guanxi or bonus compensation. Further, compensation structure only influenced internal auditors’ support of management when guanxi was distant, but when there was close guanxi between internal auditors and management, internal auditors were unlikely to challenge management regardless of the compensation structure.

Details

Advances in Accounting Behavioral Research
Type: Book
ISBN: 978-1-78441-635-5

Keywords

Click here to view access options
Book part
Publication date: 14 July 2014

Yanjie Bian and Lei Zhang

We conceptualize corporate social capital within the context of Chinese guanxi culture. We assert that the formation and mobilization of corporate social capital are…

Abstract

We conceptualize corporate social capital within the context of Chinese guanxi culture. We assert that the formation and mobilization of corporate social capital are culturally and institutionally contextualized. Building upon a relational approach to corporate performance, we examine culture-sensitive properties of Chinese guanxi and compare guanxi social capital with non-guanxi social capital. We then explain why guanxi-based corporate social capital is of growing significance to the Chinese transitional economy in an era of increasing market competition and institutional uncertainty. We conclude by proposing a research agenda about the roles that guanxi-based corporate social capital plays for boosting corporate performance.

Details

Contemporary Perspectives on Organizational Social Networks
Type: Book
ISBN: 978-1-78350-751-1

Keywords

Click here to view access options
Article
Publication date: 14 June 2021

Dong Liu, Yongchuan Bao and Guocai Wang

The purpose of this study is to examine how formal contracts affect alliance innovation performance. To understand the mechanism underlying the impact, this study tests…

Abstract

Purpose

The purpose of this study is to examine how formal contracts affect alliance innovation performance. To understand the mechanism underlying the impact, this study tests whether relationship learning mediates the impact of formal contracts on alliance innovation performance and how guanxi moderates the mediating effect.

Design/methodology/approach

This study is conducted with a sample of 225 manufacturers in China. This paper used hierarchical regression analysis to test the hypotheses and used the PROCESS method to test the mediating effect of relationship learning.

Findings

Formal contracts positively affect relationship learning, which facilitates alliance innovation performance. Guanxi positively moderates the effect of formal contracts on alliance innovation performance. Relationship learning mediates the relationship between formal contracts and alliance innovation performance. Moreover, guanxi positively moderates the mediating effect.

Research limitations/implications

Future research could investigate factors moderating the effect of guanxi on alliance innovation performance and moderating the effect of relationship learning on alliance innovation performance. Future research can also use secondary data to measure alliance innovation performance. Future researchers can examine how guanxi as a relational mechanism governance affects relationship learning.

Practical implications

Managers should conduct relationship learning in the process of alliance innovation and realize that reducing opportunism does not mean improving innovation performance. Moreover, managers should know that guanxi could contribute to alliance innovation performance with the help of formal contracts.

Originality/value

Prior studies have mainly focused on the fundamental requirement of governing knowledge exchange in alliances. Little is known about the mediating effect of relationship learning on the relationship between formal contracts and outcomes of innovation alliances. This study contributes to the literature by filling the gap.

Details

Journal of Business & Industrial Marketing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0885-8624

Keywords

Click here to view access options
Article
Publication date: 13 July 2021

Hongquan Chen, Shuhua Zhang, Bingjia Shao, Wei Gao and Yujin Xu

The purpose of this paper is to investigate the impact of buyer-seller interpersonal interactions on the purchase intention of buyers, incorporating swift guanxi as a mediator.

Downloads
1201

Abstract

Purpose

The purpose of this paper is to investigate the impact of buyer-seller interpersonal interactions on the purchase intention of buyers, incorporating swift guanxi as a mediator.

Design/methodology/approach

Based on survey data obtained from 336 Taobao Live users, PLS techniques were used to test hypotheses.

Findings

Swift guanxi exists in buyer-seller interactions and matters, as it drives buyers' purchase intention in live stream shopping. Perceived expertise, perceived similarity and perceived likeability are found to be the three essential interpersonal interaction factors promoting the formation of swift guanxi. Perceived familiarity is also found to be significant but to a lesser extent. In addition, all these interpersonal interaction factors are found to significantly affect purchase intention through the mediation of swift guanxi.

Originality/value

Swift guanxi has been less explored in live stream shopping. This study takes the lead in empirically examining the mediating role of swift guanxi in the relationship between interpersonal interaction factors and purchase intention and offers a description of key buyer-seller interpersonal interaction factors (perceived expertise, perceived similarity and perceived likeability), thereby helping to extend the swift guanxi literature in social commerce.

1 – 10 of over 2000