Abstract
This study attempts to empirically investigate how the concepts of relationship marketing affect market performance in Chinese vegetable sector. We interviewed 167 vegetable farmers and 84 processing and exporting companies to test our conceptual relationship model. Results demonstrate that personal relationships (called guanxi in China) significantly improve interpersonal trust and transaction-specific investments, which eventually show a significant impact on market performance. Results imply that the impact of guanxi networks differ on farmers and on companies. The study also reveals that transaction-related attributes (such as risk, channel requirements, and transaction conditions) influence trust, investment behavior, and market performance together with guanxi networks. The article ends with several managerial implications regarding the development of relationship marketing in China.
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