Abstract
Guanxi is an important channel for small and medium-sized enterprises（SMEs）to obtain external resources, but literatures did not pay much attention on the impact of Guanxi on the mechanism of enterprise innovation. This paper examines the mediating effect of the relationship on co-production in the process of new product development by examining the sample data of 275 small and medium enterprises from the Yangtze river delta and the pearl river delta in China, and further examines the moderating effect of dynamic environment. It is found that the relationship can directly improve the performance of new products of SMEs, and can also play an indirect role through co-production. Dynamic environments enhance the relationship between co-production and new product performance.
Highlights
Guanxi has long been regarded as an advantage of Shandong people and attaches great importance
The purpose of this study is to explore the influence of Chinese-style relationship on innovation of SMEs and its mechanism by constructing a moderated mediating effect model and using questionnaire data from 275 technology-based SMEs for hypothesis testing
It is found that the three dimensions of Chinese-style relationship can directly improve the new product performance of SMEs, and indirectly promote the new product performance of SMEs through the intermediary effect created by customers
Summary
Guanxi has long been regarded as an advantage of Shandong people and attaches great importance. In recent years it has been regarded by some as an obstacle to innovation and economic development, which is obviously counterintuitive. There are different concepts related to it in English literature and different expressions in other language contexts. The definition of "Guanxi" in different contexts is not completely consistent with the translation. In the Chinese business environment, relationships are defined as interpersonal relationships between individuals that imply reciprocal obligations and mutual assistance. It occurs at the individual level, but it can benefit the whole organization
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