Investigating the impacts of guanxi and relationship marketing in port logistics: two cases

Abstract

This study explores the differential impacts of guanxi and relationship marketing, both at the interpersonal and interorganisational level, within the port logistics industry. We compare the effects of these two marketing approaches on outcome variables to elucidate managerial implications for logistics firms conducting cross-cultural business. The PLS-SEM method is used to analyse data from a survey of logistics companies in Taiwan and Panama. In both countries, interpersonal relationships engender significant effects on interorganisational relationships, and firm performance has significant effects on firm loyalty. As regards the determinants of supply-chain effectiveness and firm performance, we show that interpersonal relationships play a more important role in Taiwan, while interorganisational relationships have more weight in Panama. In other words, Asian companies focus on guanxi marketing at the personal level, while Latin American ones focus on relationship marketing at the interorganisational level. These findings and consequent knowledge can help companies conducting business in Asia and Latin America to adapt to counterpart’s cultural business practices.