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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: 7 April 2021

Xun Zhang, Biao Xu and Jun Wu

This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context.

Abstract

Purpose

This study aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese business-to-business (B2B) context.

Design/methodology/approach

Renqing in China has played an important role in business relationships and has been receiving increased attention in both practice and theory. However, little is known about whether it can influence purchase intentions in a rational B2B condition. This research aims to examine the relationship between renqing and purchase intentions and the mechanism of its impact in the Chinese B2B context. Based on a survey of 1,010 industry buyers from 468 Chinese downstream buyer companies, the empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of long-term orientation (LTO) for increasing purchase intentions. In addition, this study also finds that product involvement (PI) has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions. The results highlight several implications for B2B companies that sell products to Chinese enterprises.

Findings

The empirical findings indicate a positive relationship between renqing and purchase intentions and the mediating role of LTO for increasing purchase intentions. In addition, this study also finds that PI has a negative moderating effect on the relationship between renqing and purchase intentions, which means that renqing has a big positive effect on purchase intentions in low PI conditions.

Originality/value

First of all, by answering the research question, this study shows that renqing has a positive effect on purchase intentions in Chinese B2B context. Second, this study elucidates the influence mechanism of renqing on purchase intention and identifies the mediating effect of LTO and the moderating effect of PI.

Details

Journal of Business & Industrial Marketing, vol. 37 no. 1
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 1 October 2019

Birce Dobrucalı

This paper aims to provide a comprehensive and systematic review of the extant empirical body of knowledge regarding the impact of Guanxi on international Business-to-Business…

1546

Abstract

Purpose

This paper aims to provide a comprehensive and systematic review of the extant empirical body of knowledge regarding the impact of Guanxi on international Business-to-Business (B-to-B) relationships.

Design/methodology/approach

After the collection and refinement of studies that appeared in marketing, business and management literature during 1995-2018 period, a systematic review was conducted to discover the current situation and future research directions on the subject.

Findings

Theoretically, vast majority of the reviewed studies lacked a theoretical foundation, with the remainder anchored primarily on the resource-based view, social network theory and social exchange theory. Methodologically, Ganqing, Xinren and Mianzi are the most frequently investigated dimensions, whereas Renqing is the least investigated dimension. Data are mostly obtained from both Chinese and Western counterparts through survey and analyzed through univariate and multivariate data analysis techniques. Empirically, extant research focused on many diverse outcomes including trust, financial performance, cooperation, satisfaction, time orientation, opportunism and liability of foreignness, while under-examining the drives of Guanxi.

Research limitations/implications

This study provides a synthesis of extant line of research on the subject that are published in peer-reviewed international journals, which publish research in English. A meta-analysis may be conducted for providing a further detailed framework.

Originality/value

This study contributes to international marketing literature by providing an in-depth and synthesized inventory of knowledge to scholars; deriving a comprehensive analysis of theoretical foundations, methodological approaches and findings addressed by scholars in the field; noticing theoretical, methodological and empirical gaps to be examined; and providing future research directions.

Details

Journal of Business & Industrial Marketing, vol. 35 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 30 July 2019

Ron Berger, Ram Herstein, Daniel McCarthy and Sheila Puffer

The purpose of this paper is to analyze the role of Wasta, a culturally based system of social networks of exchange among in-group members in the Arab world, as exemplified by…

1133

Abstract

Purpose

The purpose of this paper is to analyze the role of Wasta, a culturally based system of social networks of exchange among in-group members in the Arab world, as exemplified by three groups of Arabs in the Palestinian Authority, and then compares it to Guanxi (China), Sviazi (Russia) and JaanPechaan (India). The use of social networks is a common business model around the world to accomplish business objectives and is especially relied upon in emerging economies where formal institutions are weak. It is important to understand the commonalities and differences in the use of reciprocity in various cultural contexts in order to conduct business effectively. The aim of the paper is to illustrate the structure of Wasta and how it is perceived and constructed among three Arab social groups, and then compare and contrast it with social business models in three other high context cultures.

Design/methodology/approach

Qualitative approach based on interviews to better understand the relationships involved.

Findings

The findings provide the foundation for a number of critical insights for non-Arab managers seeking to do business in the Arab world. For international managers to conduct business successfully, it is essential to understand how Wasta works, and establish relationships with members of influential social networks by building trust over time such that they create Wasta for themselves and indirectly for their firms. Using Wasta in the Arab world, as noted above, is similar to doing business successfully in other emerging economies such as using Sviazi in Russia (McCarthy and Puffer, 2008; Berger et al., 2017), Guanxi in China (Yen et al., 2011) and Jaan–Pechaan in India (Bhattacharjee and Zhang, 2011). The authors feel more confident in stating this view after comparing Wasta with these other three concepts, and noting that all four are built upon the same fundamental constructs.

Research limitations/implications

The authors recognize that the study is limited in terms of the geographical sample since it does not include any non-Palestinians, although the managers the authors sampled came from various regions in the Palestinian authority. Additionally, Palestinian managers are highly educated and mobile, and can be found in many other Arab countries working in managerial positions (Zineldin, 2002), thus potentially broadening the generalizability of the findings. Nonetheless, the samples would be called ones of convenience rather than randomly drawn from the three groups, since the latter would be extremely difficult to execute not only in the Palestinian Authority but in most of the Arab world due to the culturally based reluctance to provide sensitive information to those outside one’s network. Despite the difficulties that might be involved in exploring such culturally sensitive issues as the authors did in this study, the benefits in knowledge gained can be of significant importance to the study of international business in emerging and transition economies.

Originality/value

Little research has focused on the use of Wasta in the Arab world, a gap which this paper addresses. The authors do so by analyzing the views of Wasta held by three important groups – leaders, business people and students. While each type of reciprocity has its own unique characteristics, the authors focus on three interrelated constructs that have been found to underlie the use of reciprocity in various cultures. In the Arab world, these are Hamola, which incorporates reciprocity; Somah, that incorporates trust; and Mojamala, which incorporates empathy through social business networks.

Details

International Journal of Emerging Markets, vol. 14 no. 5
Type: Research Article
ISSN: 1746-8809

Keywords

Article
Publication date: 11 January 2013

Sonia Manjeshwar, Brenda Sternquist and Linda K. Good

Buying decisions are often viewed as random and therefore not generalizable. Additionally, retail buying is typically conducted by individuals and is impacted by cultural…

2410

Abstract

Purpose

Buying decisions are often viewed as random and therefore not generalizable. Additionally, retail buying is typically conducted by individuals and is impacted by cultural considerations. The aim of this paper is to identify critical incidents from China and India, and use theoretical concepts from buyer‐supplier literature to explain the outcome success or failure.

Design/methodology/approach

The paper uses the critical incident technique to capture retail buying decisions that resulted in either successful or unsuccessful outcomes. The authors analyze and match each critical incident with theoretical evidence to explain the result.

Findings

A total of ten critical incidents were described by ten senior retail‐buying executives in China and India. Critical incidents were classified under four retailing categories: assortment planning, product promotion, sourcing issues, and supply chain issues, and analyzed under four theoretical themes: opportunism, trust, long‐term orientation and power‐dependence.

Practical implications

Organized retailing is a new phenomenon in China and India. This study bears implications for the training of future retail buyers in both emerging economies, and emphasizes the integration of scientific, modern methods of decision‐making with the cultural values of the local country.

Originality/value

This study is unique because it relies on the voice of the retail buyer to explain real‐world decision making with theoretical evidence from buyer‐supplier literature. Methodologically, this paper is unique as it reports on the first study using critical incident interview techniques to study professional retail‐buying practices.

Details

Qualitative Market Research: An International Journal, vol. 16 no. 1
Type: Research Article
ISSN: 1352-2752

Keywords

Article
Publication date: 3 July 2007

Wang Qian, Mohammed Abdur Razzaque and Kau Ah Keng

The purpose of this paper is to report the results of a study undertaken to investigate the gift‐giving behavior of consumers in the People's Republic of China (PRC) during the…

15111

Abstract

Purpose

The purpose of this paper is to report the results of a study undertaken to investigate the gift‐giving behavior of consumers in the People's Republic of China (PRC) during the Chinese New Year and the influence exerted by Chinese cultural values on such behavior.

Design/methodology/approach

Using a survey among a large sample of people in the city of Tianjin, gift‐giving behavior was measured by the importance accorded to gift‐giving, the amount given, the effort spent on gift selection and brand orientation when selecting gifts. The cultural values examined were renqing (human obligations), guanxi (relationship), yuan (destiny or fate), reciprocity, family orientation and Mianzi (face). Factor analysis and structural equation modeling were used to analyze the data.

Findings

Results indicated that Chinese cultural values as a whole as well as most of its components investigated in this research had positive effects on the various gift‐giving behaviors. The “face” component was, however, found to affect only the importance attached to gift‐giving, the amount given and the choice of brand.

Research limitations/implications

Research results should be interpreted with caution as the study was limited to Tianjin – one of the several major cities in the PRC. Also the Chinese New Year may not be representative of other occasions when gifts are exchanged.

Practical implications

The results of this investigation would benefit practitioners involved in the marketing of “gift items” in the PRC by providing them with a clear understanding of the general consumption patterns of the PRC urban consumers, insights into the various antecedents of gift‐giving and linking them with various aspects of Chinese cultural values. The research findings would also benefit researchers, academics and others interested in the PRC market by making them familiar with some of the salient aspects that characterize Chinese consumers.

Originality/value

This study develops a new model describing the relationships among values (Chinese cultural value and personal value), motivation for gift‐giving and gift‐giving behavior. It also develops new scales for measuring the constructs such as Chinese cultural values, motivation for gift‐giving and gift‐giving behavior.

Details

Journal of Consumer Marketing, vol. 24 no. 4
Type: Research Article
ISSN: 0736-3761

Keywords

Article
Publication date: 7 March 2016

AMNA KHAN, Judith Zolkiewski and John Murphy

The purpose of this paper is to explore the impact and effect of renqing in Chinese business relationships. The research focused on a multinational organisation that is based in…

1143

Abstract

Purpose

The purpose of this paper is to explore the impact and effect of renqing in Chinese business relationships. The research focused on a multinational organisation that is based in China.

Design/methodology/approach

As the research was exploratory, a qualitative approach was adopted. The researcher was based in the organisation for a six-month period, and interviews were undertaken with purchasing managers.

Findings

The findings show that the Chinese concept of renqing comprises favours and opportunities.

Research limitations implications

The research is exploratory and further research is required to confirm the wider applicability of the findings.

Practical implications

The findings illustrate the importance of understanding the use of both favours and opportunities in business relationship in China. The findings also indicate the importance of being sensitive to cultural factors in business relationships.

Originality/value

This exploratory research indicates that previous conceptualisation of Renqing was limited, as the aspects it encompasses, favours and opportunities, were not identified. This research identifies the importance of opportunities in Chinese business relationships.

Details

Journal of Business & Industrial Marketing, vol. 31 no. 2
Type: Research Article
ISSN: 0885-8624

Keywords

Article
Publication date: 28 February 2023

Jiayuan Liu and Xiaoyu Xi

This study aims to theorize and empirically examine how guanxi in Chinese collectivistic culture affects entrepreneurs to leverage the structural holes they occupy when it comes…

Abstract

Purpose

This study aims to theorize and empirically examine how guanxi in Chinese collectivistic culture affects entrepreneurs to leverage the structural holes they occupy when it comes to promoting knowledge transfer.

Design/methodology/approach

To examine the hypotheses, this study used a mixed-methods research approach where quantitative questionnaires and social network analyses were used through 365 Chinese entrepreneurs, and qualitative semistructured interviews were conducted through 50 Chinese entrepreneurs.

Findings

In a Chinese entrepreneur’s guanxi network, structural holes will impede knowledge transfer among network members, but guanxi will moderate this impeding effect.

Research limitations/implications

By revealing how “structural hole controllers” become “structural hole fillers” under the moderating influence of guanxi in Chinese collectivistic culture, this study recognizes the different roles that persons who occupy a structural hole play in different situations, which advances structural hole theory. In addition, by exploring how entrepreneurs orchestrate these structural holes to create a strong guanxi network that can be infinitely extended, this study reveals a means to achieve both advantages of bonding and bridging social capital simultaneously, which generates a theoretical contribution to social capital integration.

Practical implications

This study suggests Chinese entrepreneurs to cultivate guanxi to improve their needs in decision-making by giving renqing, returning renqing, earning mianzi and giving mianzi.

Originality/value

By showing how Chinese entrepreneurs leverage their guanxi and structural holes to facilitate knowledge transfer, this study identifies the critical entrepreneurial behavior that promotes business development, thereby contributing to the literature of knowledge management, entrepreneurship and social network.

Details

Journal of Knowledge Management, vol. 27 no. 10
Type: Research Article
ISSN: 1367-3270

Keywords

Article
Publication date: 7 June 2018

Haiyan Emma Lu, Andrew Potter, Vasco Sanchez Rodrigues and Helen Walker

The implementation of sustainable supply chain management (SCM) calls for an acknowledgement of uncertainty inherent in complex environment. Confucianist society forms social…

4295

Abstract

Purpose

The implementation of sustainable supply chain management (SCM) calls for an acknowledgement of uncertainty inherent in complex environment. Confucianist society forms social networks in Confucianist society, called guanxi networks, influence economic behaviours and business practices in the workplace. The purpose of this study is to explore how these social networks influence the implementation of sustainable SCM. In doing so, this study aims to critically investigate the constructs of guanxi networks, their impact on flow of supply chain capital and how this leverages the implementation of sustainable SCM.

Design/methodology/approach

Two systematic literature reviews are conducted to understand the constructs of social networks in Confucianist culture and their impacts on the flow of supply chain capitals. The reviews also analyse evidence related to the economic, social and environmental practices to reveal the current state of the literature and research gaps. Propositions and a framework are developed to support future research in this area.

Findings

The constructs of ganqing, renqing, xinren and mianzi in guanxi networks have expanded the contexts of social networks in Western literature. Guanxi networks increase the flow of supply chain capital and generate trust between players, thus enhancing capabilities to implement sustainable SCM. Guanxi networks also create the mechanism of network governance with which to increase sustainable SCM implementation under the institutional logics of sustainability.

Research limitations/implications

The conceptual framework and justification are based on the reviews of current studies in the field. Future empirical study is encouraged to test the propositions, both in Confucianist culture and other countries with culture of social networks.

Originality/value

Social networks are socially constructed concepts. The constructs of guanxi networks revealed in this study have developed the knowledge of Western-based social network theory. Besides, arguments from a social network perspective provide an alternative answer to explain increased behavioural commitment and companies’ investment in sustainable SCM. This study helps practitioners understand the logic of this social norm and to use it to maximise their operation outputs, including sustainable SCM implementation.

Details

Supply Chain Management: An International Journal, vol. 23 no. 4
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 27 August 2019

Michelle Sitong Chen and Gabriel Eweje

The purpose of this paper is to examine empirically how managers establish ethical guanxi (interpersonal relationships) with their business partners to prevent potential ethical…

Abstract

Purpose

The purpose of this paper is to examine empirically how managers establish ethical guanxi (interpersonal relationships) with their business partners to prevent potential ethical incidences in Chinese and Western business contexts.

Design/methodology/approach

The present study is guided by a qualitative, abductive approach and draws on in-depth interviews with ten senior managers in five urban New Zealand organisations.

Findings

The results point out that guanxi (interpersonal relationships) purely working through renqing (reciprocity) is not sustainable, because it perpetuates a never-ending cycle of favours, once exchanging favours stopped or disappeared, then business relationships dwindled. To establish an ethical guanxi model, the authors found that xinyong (trust) is the foundation, and its enlargement stimulates lijie (empathy) that transfers pure business relationships to a genuine friendship which enhances ethical decision-making. They also posit that once managers are embodied with lijie, then they will have the virtue of ren to behave like junzi (ideal Confucian ethical person) whose business actions tend to be intrinsically guided by a sense of obligation to do something right that will work for diverse stakeholders’ interests, for the prosperity of organisations and society.

Practical implications

This study suggests that managers should take Confucian virtues of xinyong (trust) and lijie (empathy), because they will trigger ren (humanity) as an intrinsic value. In this way, it is more likely for them to become junzi (ideal Confucian ethical person) whose business actions are intrinsically guided by a sense of obligation to do something right that benefits various stakeholders, organisations and society.

Originality/value

This study contributes to the extant literature on preventing ethical incidents of guanxi (interpersonal relationships) by drawing a framework of ethical guanxi, which is built on Confucian virtues of xinyong (trust), lijie (empathy) and ren (humanity). Further, this paper strongly suggests that companies should educate their staff to become more humane to make moral decisions in daily management practice.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

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