Abstract
ABSTRACTRelationships are widely recognized as key to business success in the form of both informal interpersonal networks and formal organizational relationships. While Chinese personal networks (guanxi) have attracted scholars’ interest, the concept has not been fully investigated or understood in other contexts, especially the Middle East, where personal networks fulfill some of the same roles. The underlying socio-cultural formulae of the distinctive cultural dimensions that influence relationship formation in the Middle East also remain under-explored. This research therefore investigates the dimensions ofguanxi-type relationships in the Middle East and introduces a new model integrating these relationships into the existing relationship marketing framework, enabling firms to harness personal networks for organizational gain, in turn generating customer satisfaction and retention. Using empirical data from a survey of 637 hotel guests in 17 countries – drawn from a unique target population of guests introduced to Middle Eastern hotels via personal relationships – we show howguanxi-type relationships influence organizational relationships and improve satisfaction and retention. Our significant contributions to theory and practice include extending a holistic understanding ofguanxi, enhancing knowledge of its dimensions in the Middle East, and providing managers with clear evidence for a hybrid system ofguanxi-type and organizational relationships.
Highlights
It is widely accepted globally that establishing, developing, and maintaining quality relationships with customers is important when conducting business, especially in complex and highly competitive markets (Ndubisi & Wah, 2005; Weir, Sultan, &Van De Bunt, 2016)
Since our aim was to analyze the effects of guanxi-type relationships and organizational relationships on guest retention in the Middle East, 17 countries across the region were selected, and 300 suitable hotels were identified in capitals or other major cities, located in areas that represented important destinations for guests
We calculated Cronbach’s alpha reliability coefficient and items-to-total correlation. This analysis led to the deletion of two items from the guanxi-type relationships construct and one from the organizational relationships construct
Summary
It is widely accepted globally that establishing, developing, and maintaining quality relationships with customers is important when conducting business, especially in complex and highly competitive markets (Ndubisi & Wah, 2005; Weir, Sultan, &Van De Bunt, 2016). The similarities between network-based relationships in China and those in the Arab world prompted Hutchings and Weir (2006a, 2006b) to call for research addressing networks in the Arab world generally and guanxi-type relationships given the lack of adequate research. Answering this call, Shaalan, Weir, Reast, Johnson, and Tourky (2014) found that similar relationships to those found in Chinese guanxi existed in the Middle East, and agreed with Weir and Hutchings (2005) that life in the Arab world was wholly reliant on networks of interpersonal connections. This study uses the term ‘guanxi-type relationships’ to refer to the networks of interpersonal ties found in the Middle East
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