Guanxi and intra-organizational conflicts: evidence from Chinese logistics industry

Abstract

PurposeThe purpose of this paper is to understand conflicts that develop between managers and their respective firms when a personal relationship is present between managers of buying and supplying firms in the Chinese logistics industry.Design/methodology/approachThis research uses a case study methodology to allow for an assessment of the conflicts that emerge between managers and their respective firms when a personal relationship is present between them.FindingsThe findings reveal conflicts between managers and their respective firms as a result of personal relationship between managers buying and selling logistics services in China.Research limitations/implicationsThis study uses semi-structured interviews with Chinese senior managers to explore intra-organizational conflicts, which develop as a result of personal relationships embedded within buyer–supplier relationships. The generalizability of the findings will have to be empirically examined in future research.Practical implicationsChinese firms can use the findings to understand conflicts, which arise between managers and their respective firms when a personal relationship is present between managers engaged in the process of buying and selling logistics services.Originality/valueA notable gap in buyer–supplier relationship literature, specifically in Chinese business culture, is an unfulfilled need for research examining intra-organizational conflicts, when a personal relationship is present between managers of buying and supplying firms in the logistics industry. This paper addresses this gap.