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Article
Publication date: 20 December 2022

Lilei Wang, Yumei Dang, Shufeng (Simon) Xiao and Xing'an Xu

By adopting learning theory and a guanxi perspective, this study aims to investigate the effects of interpersonal guanxi (interpersonal networks or connections) and relationship…

Abstract

Purpose

By adopting learning theory and a guanxi perspective, this study aims to investigate the effects of interpersonal guanxi (interpersonal networks or connections) and relationship learning on companies’ business performance when operating in a large emerging market.

Design/methodology/approach

Using a sample of 294 sales managers and salespeople in the Chinese hotel sector, the authors empirically test the authors' arguments through a structural equation modeling (SEM) approach.

Findings

The authors' findings indicate that strong interpersonal guanxi tends to generate more positive business performance. Furthermore, the authors find that relationship learning plays a mediating role in the association between interpersonal guanxi and hotel companies’ business performance in a Chinese context. Finally, the authors empirically explore the moderating effect of inter-firm dependence on the contribution of interpersonal guanxi to relationship learning. Findings demonstrate that this effect varies significantly based on inter-firm dependence, with interpersonal guanxi exhibiting a greater positive impact if such dependence is high.

Originality/value

This study enriches our understanding of interpersonal guanxi and of how companies can enhance the companies' business performance in an emerging market context.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 30 December 2020

Weidong Rong, Mark J. Arnold and Brad D. Carlson

Guanxi is the foundation of business success in Chinese and other Eastern cultures, but little is known about the extent to which guanxi influences brand outcomes in channel…

Abstract

Purpose

Guanxi is the foundation of business success in Chinese and other Eastern cultures, but little is known about the extent to which guanxi influences brand outcomes in channel relationships. The purpose of this study is to propose a novel theoretical framework of interpersonal and interorganizational guanxi relationships in a sales channel context and how these relationships influence brand outcomes.

Design/methodology/approach

The authors conceptualize, develop and validate new scales measuring interpersonal and interorganizational guanxi and test the proposed model with a field study to validate the effects of guanxi on brand loyalty. The causal relationships between interpersonal guanxi and brand attitudes and affect are confirmed in a separate field experiment.

Findings

Findings show that interpersonal guanxi is antecedent to interorganizational guanxi, and these two constructs have significant and differential direct and indirect effects on brand attitudes, brand affect and brand loyalty.

Originality/value

New multidimensional scales measuring both interpersonal and interorganizational guanxi were developed. Both interpersonal and interorganizational guanxi are conceptualized as second-order reflective constructs measured by the reflective first-order guanxi elements of personal and firm trust, personal and firm long-term orientation, xinyong (integrity), reciprocity, interaction and face.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

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.

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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.

Article
Publication date: 27 September 2011

Ren Lu and Jing Ma

The emergence of “interorganizational marketing” as a hot topic leads to one key question: can interorganizational governance mechanisms (socialization, incentives, and…

Abstract

Purpose

The emergence of “interorganizational marketing” as a hot topic leads to one key question: can interorganizational governance mechanisms (socialization, incentives, and monitoring) offered by marketing theory be applied to China, an emerging economy characterized by the Chinese guanxi relationship? The purpose of this paper is to seek to answer this question by introducing the importance of guanxi roles and by illustrating how to apply proper governance mechanisms to roles activation in Chinese business practice. The paper finds that the answer is “yes” and develops a theoretical model to show such interactions.

Design/methodology/approach

The paper applies interorganizational strategies to interpersonal relationships. Guanxi was categorized into three categories – family members, helpers and business partners – which meet each of the three governance mechanisms (in addition to favoring exchange as a special and typical Chinese governance mechanism) in the model.

Findings

Through ex post role activation, the paper argues that guanxi is a dynamic balance and the ways in which various governance mechanisms can set roles will lead to the roles either changing (reinforcement or dilution) or switching (helper to business partner, and vice versa). It seems futile to implement external governance mechanisms on family ties (the main category of guanxi) that have been firmly rooted in Chinese culture. On the other hand, applying the four mentioned governance mechanisms could reinforce, maintain, or dilute helper and business partner roles, or even make it possible to switch from one to another.

Originality/value

The paper proposes a new concept regarding relationship marketing, namely the application of governance mechanisms to interpersonal relationships, which provides people doing business in China with a new perspective for reference.

Details

Asia-Pacific Journal of Business Administration, vol. 3 no. 2
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 7 June 2019

Liang Zhao and Tsvi Vinig

This paper aims to examine different hypotheses concerning the effects of guanxi on the reward-based crowdfunding project fundraising. Specifically, this study provides new…

Abstract

Purpose

This paper aims to examine different hypotheses concerning the effects of guanxi on the reward-based crowdfunding project fundraising. Specifically, this study provides new insights into how guanxi and guanxi intensity may affect reward-based crowdfunding success and project performance in the Chinese context.

Design/methodology/approach

The research data including 989 crowdfunding projects were collected from zhongchou.com which is the largest reward-based crowdfunding platform in a one-year period (2014.1-2014.12). The hypotheses are tested by using robust OLS regressions and robust logistic regressions. Robustness check was also conducted to test the validation of the results.

Findings

This paper found that project developers’ guanxi-establishing behavior conducted before launching their own projects such as being fans of other projects and supporting other projects are positively related to project success. In addition, the intensity of guanxi-establishing behavior positively influences project performance in a significant way. Besides, the establishment and maintenance of project developers’ guanxi with funders during the fundraising process are also positively associated with project success and fundraising performance.

Originality/value

Based on the theory of trust, this paper offers an interesting and novel perspective to investigate reward-based crowdfunding success in the Chinese context by taking guanxi and guanxi intensity into consideration.

Details

Chinese Management Studies, vol. 14 no. 2
Type: Research Article
ISSN: 1750-614X

Keywords

Article
Publication date: 30 May 2023

Wei-Shen Hui, Houn-Gee Chen, Yi-Te Chiu and Matevz (Matt) Raskovic

Relationships are a critical success factor for business operations across markets with dominant Chinese culture, like Taiwan. The intersection of a high-quality institutional…

Abstract

Purpose

Relationships are a critical success factor for business operations across markets with dominant Chinese culture, like Taiwan. The intersection of a high-quality institutional environment and a traditional Chinese cultural background in Taiwan provides a unique setting for exploring different types of relational mechanisms and ensuing renqing practices (i.e. reciprocal exchange of favors with empathy). The purpose of this paper is to examine when, where and how Taiwanese high-performance organizations manage and deploy interorganizational renqing across their business relationship portfolios. Answering these questions can help build a theory of interorganizational renqing and advance interorganizational reciprocity theorization more generally.

Design/methodology/approach

This research is motivated by two key research questions. First is related to how renqing givers understand renqing in the context of their organizations and their interorganizational business relationship portfolios. Second, whether organizations prefer a neutral renqing balance, a renqing debt or a renqing surplus is another point of interest. The study is based on interviews with upper echelon elite informants at six high-performing Taiwanese organizations with business relationship portfolios worldwide.

Findings

It is found that interorganizational renqing is deployed as a hybrid resource, taking on the functions of both an investment and a type of insurance against risk. Two notable differences between interorganizational and interpersonal renqing are also noted. First, the social exchange norm aspect of renqing points to salient social exchange norms also in interorganizational exchanges. This confirms the importance of understanding not only the regulative and normative dimensions of business relationships, as a type of institution, but also the cognitive dimensions and underlying institutional logics. Second, this study shows that unlike at the interpersonal level, the notion of renqing debt is not common at the interorganizational level – at least not within high-performance organizations with market leader positions.

Originality/value

This study explores interorganizational renqing practices and their strategic deployment through the use of “accessing” and “embedding” relational mechanisms. The study also adds to the poorly understood nature of interorganizational reciprocity and provides support for developing a theory of interorganizational renqing, as a form of interorganizational reciprocity within a Chinese cultural context.

Article
Publication date: 15 February 2022

Zhigang Shou, Yu Gong and Qiyuan Zhang

Interorganizational dependence is considered as a liability for each firm and needs to be managed properly. Rather than exploring the opportunistic outcome of dependence, the…

Abstract

Purpose

Interorganizational dependence is considered as a liability for each firm and needs to be managed properly. Rather than exploring the opportunistic outcome of dependence, the authors focus on the moderating role of supply chain boundary spanners' guanxi. This study tends to uncover the way and the conditions under which boundary spanners' guanxi influences dependence-opportunism relationships.

Design/methodology/approach

Using a survey of 380 buyer–supplier exchanges in China, this study first examines the relationship between dependence and opportunism, then assesses the contingent role of boundary spanners' guanxi and further tests how unfairness perception and legal inefficiency alter the role of guanxi in managing dependence.

Findings

This study finds that buyer dependence increases supplier opportunism while supplier dependence lowers supplier opportunism. Boundary spanners' guanxi weakens the opportunism-facilitating impact of buyer dependence and mitigates the opportunism-restricting effect of supplier dependence. However, unfairness perception would attenuate the value of guanxi in restricting depended sides' opportunism but strengthen the value of guanxi in motivating depending sides' opportunism; legal inefficiency would amplify the value of guanxi in facilitating depending suppliers' opportunism.

Originality/value

First, the study enriches supply chain dependence studies by incorporating interpersonal guanxi into the investigation of dependence-opportunism relationships. Second, the study adds to the supply chain management literature by uncovering a contrasting role of guanxi in influencing the dependence-opportunism relationship. Third, the study incorporates an agency view to uncover two boundary conditions under which guanxi is mobilized for personal interest seeking or for organizational purposes.

Details

International Journal of Operations & Production Management, vol. 42 no. 3
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 April 2014

Shih Yung Chou, Bo Han and Xiaohu Zhang

– This study aims to investigate a subordinate's perception of supervisor-subordinate guanxi and its impact on the subordinate's work-related outcomes.

Abstract

Purpose

This study aims to investigate a subordinate's perception of supervisor-subordinate guanxi and its impact on the subordinate's work-related outcomes.

Design/methodology/approach

This study draws upon relevant literature and develops a theoretical framework that investigates the relationships among a subordinate's perceived supervisor-subordinate guanxi, loyalty to supervisor, challenge-oriented organizational citizenship behaviour (OCB), affiliation-oriented OCB, job security perception, and task performance.

Findings

This study suggests first, subordinate-supervisor guanxi will have a positive impact on a subordinate's loyalty to supervisor. Second, subordinate-supervisor guanxi will negatively affect a subordinate's challenge-oriented OCB, but will positively affect a subordinate's affiliation-oriented OCB. Third, a subordinate's loyalty to supervisor will negatively influence his or her challenge-oriented OCB, but will positively influence his or her affiliation-oriented OCB. Fourth, challenge-oriented OCB will negatively affect job security perception, whereas affiliation-oriented OCB will positively affect job security perception. Finally, job security perception will positively influence task performance.

Research limitations/implications

This study has several limitations. First, it does not consider the role of personality traits in determining work-related behaviours. Second, it only considers a one-to-one guanxi relationship. Thus, the results of this study could be different when a supervisor has one-to-many guanxi relationships.

Practical implications

This study suggests that a supervisor should take how to create quality informal relationships with subordinates into account when attempting to motivate Chinese subordinates' task and extra-role performance. Moreover, managers should manage effective informal social networks with subordinates proactively.

Originality/value

This study is one of the few studies that examine the impact of subordinate-supervisor guanxi on both extra-role and in-role performance from the perspective of singular view of subordinate-supervisor guanxi.

Details

Asia-Pacific Journal of Business Administration, vol. 6 no. 1
Type: Research Article
ISSN: 1757-4323

Keywords

Article
Publication date: 7 September 2023

Chi Zhang, Mani Venkatesh and Marc Ohana

Drawing on institutional theory, this study investigates the role of individual cultural values on the adoption of socially sustainable supply chain management (socially SSCM) for…

Abstract

Purpose

Drawing on institutional theory, this study investigates the role of individual cultural values on the adoption of socially sustainable supply chain management (socially SSCM) for Chinese suppliers facing the normative institutional pressures of guanxi (interpersonal relationships).

Design/methodology/approach

Using empirical data collected in three waves from 205 Chinese manufacturers supplying international markets, the proposed theoretical model is tested through partial least squares structural equation modeling (PLS-SEM).

Findings

The results indicate that guanxi has a positive impact on socially SSCM, and this positive effect is strengthened when the individual cultural values of the supplier's representative embody high collectivism and low uncertainty avoidance.

Research limitations/implications

This study highlights the leading role of guanxi in improving socially SSCM practices due to its normative institutional force. In addition, the findings suggest that future studies should consider individual differences in supply chain partners, which may lead to distinct reactions when facing normative institutional pressures.

Practical implications

This study suggests international buyers should adopt guanxi management with their Chinese suppliers to encourage them to adopt socially SSCM. In addition, managers should note that the guanxi strategy is more effective when the supplier's representative collectivism is high and uncertainty avoidance is low.

Originality/value

This study contributes to socially SSCM research in emerging economies by unveiling the role of guanxi as a key driver of socially SSCM in the Chinese market and providing empirical evidence of the moderating effect of individual culture on the guanxi normative institutionalization process.

Details

International Journal of Operations & Production Management, vol. 44 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

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' guanxi to…

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. 29 no. 2
Type: Research Article
ISSN: 2059-5794

Keywords

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