Impact Of Guanxi Research Articles

Guanxi, Co-Production and New Product Performance: a Moderated Mediating Effect Model

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.

The role of Guanxi on international business-to-business relationships: a systematic review and future directions

PurposeThis paper aims to provide a comprehensive and systematic review of the extant empirical body of knowledge regarding the impact of Guanxi on international Business-to-Business (B-to-B) relationships.Design/methodology/approachAfter the collection and refinement of studies that appeared in marketing, business and management literature during 1995-2018 period, a systematic review was conducted to discover the current situation and future research directions on the subject.FindingsTheoretically, vast majority of the reviewed studies lacked a theoretical foundation, with the remainder anchored primarily on the resource-based view, social network theory and social exchange theory. Methodologically, Ganqing, Xinren and Mianzi are the most frequently investigated dimensions, whereas Renqing is the least investigated dimension. Data are mostly obtained from both Chinese and Western counterparts through survey and analyzed through univariate and multivariate data analysis techniques. Empirically, extant research focused on many diverse outcomes including trust, financial performance, cooperation, satisfaction, time orientation, opportunism and liability of foreignness, while under-examining the drives of Guanxi.Research limitations/implicationsThis study provides a synthesis of extant line of research on the subject that are published in peer-reviewed international journals, which publish research in English. A meta-analysis may be conducted for providing a further detailed framework.Originality/valueThis study contributes to international marketing literature by providing an in-depth and synthesized inventory of knowledge to scholars; deriving a comprehensive analysis of theoretical foundations, methodological approaches and findings addressed by scholars in the field; noticing theoretical, methodological and empirical gaps to be examined; and providing future research directions.

Interpersonal knowledge exchange in China: The impact of guanxi and social media

The employees of professional service firms regularly engage in various knowledge-related activities, including the seeking and sharing of knowledge with other people; we refer to this process as interpersonal knowledge exchange (IKE). Two prominent drivers of IKE in China are the socio-cultural concept of guanxi and social media. We conduct an interpretive investigation into IKE, collecting qualitative data from employees in three Chinese organizations. We explore how guanxi lubricates the social media-based communication practices that are central to IKE in China. We report and generalise our findings into theoretical propositions, discuss the practical implications, and identify opportunities for future research.

Positive Effect or Negative Effect? Judging the Social Impact of Guanxi in the Perspective of Traditional China Culture

Positive Effect or Negative Effect? Judging the Social Impact of Guanxi in the Perspective of Traditional China Culture

An Empirical Study on the Impact of Guanxi and Trust on External Financing Efficiency in Clusters

Financing is a critical bottleneck problem in the development process of SMEs. SMEs’ business activities are more closely embedded in the network, because the geographical location closeness facilitates the exchange of information and the diffusion of knowledge. We try to explore how the cluster network relations affect the efficiency of SMEs external financing efficiency. This paper takes a close look at firm financing patterns and factors that influence external financing performance of SMEs in clusters. However, our results suggest that financing from bank is the main financing pattern. We also find inter-firm trust is positively related with external financing efficiency and this positive relationship is moderated by the level of Guanxi. Theoretical and managerial implications are discussed.

The evolution of Chinese business ethics

Purpose– This article aims to present a historical overview of the evolution of business ethics in China and highlights the ways in which its ethical structure lags behind its rapid economic expansion. Understanding Guanxi, the Chinese social network of reciprocal business relations common in Confucian cultures, has long been recognized as one of the major success factors when doing business in China (Hwanget al., 2009). Recognizing the significant impact of Guanxi and its influence on everyday dealings in China is, thus, crucial for Western firms. Whereas considerable research has dealt with the growth of Chinese industries in recent years, the key relationship between changes in its economy and shifts in Chinese business ethics has been neglected although it impacts the ways Westerners, in particular, both clinch deals and judge Chinese firms. The implications of this disparity for global business are discussed.Design/methodology/approach– The discussion draws on the academic literature and the researchers’ experience in how business and business ethics are conducted between Western and Chinese firms. This paper presents a content analysis of theoretical articles and compares them to conceptual and empirical approaches, with an emphasis on a pragmatic approach to fostering a better understanding of the evolution of Chinese business ethics and its implications on business practices.Findings– Maps the evolution of business ethics in China and need to adapt to an ever changing business environment.Originality/value– This study offers a new insight to the evolution of Chinese business ethics and highlights its importance in business interactions. It illustrates the co-evolution of business ethics in parallel with the advancement of the Chinese economy. This paper is the first paper that addresses the issue of the evolution and formation of Chinese business ethics and links it to economic progress and opening up to the West.

The changing role of guanxi in influencing the development of entrepreneurial companies: a case study of the emergence of pharmaceutical companies in China

“Guanxi” is a term in Chinese referring to the reciprocal nature of interpersonal relationships. Its attributes, which are specific to Chinese culture, have been the focus of recent literature. Whereas the impact of guanxi seems to be quite similar to that of general relationships, ties or connections, it is characterized by a number of different dimensions. In this paper, we studied 44 entrepreneurial companies in the pharmaceutical industry in China to examine these attributes in greater detail. We use a system dynamics model to simulate the influence of various guanxi variables – the strength, scale and structure of guanxi – on the development of entrepreneurial companies.

The Impact of Guanxi on Ethical Perceptions: The Case of Taiwanese Salespeople

Purpose: Extant empirical work demonstrates that guanxi can foster favoritism or preferential treatment toward certain customers, which could lead to unethical business behavior. However, scholars have not investigated the potential effect of guanxi on ethical perceptions in a crucial extra-organizational context: the buyer–seller dyad. This article seeks to address the lacuna and examines the impact that guanxi has on Taiwanese salespeople's ethical perceptions. Methodology/approach: A survey of salespeople was used to test the proposed hypotheses. A sample consisting of Taiwanese salespeople from firms in the finance, insurance, information technology, direct selling, food and beverage, fashion, tourism, health care, and agriculture (all B2B) industries was used. Findings: Results indicate that expressive tie sales personnel tended to have lower ethical concern than their instrumental tie counterparts. Relative to instrumental tie sales personnel, mixed tie salespeople manifested less ethical concern in the scenario that was considered to be the most ethically nettlesome. Practical implications: Because guanxi affects sales personnel's ethical perceptions—thus indicating that they may compromise their organization for the good of their customer—it is important for companies to regulate guanxi building in terms of what can and cannot be done, with a range of flexibility and corresponding rewards and punishments. Ethical practices should be incorporated into salespeople's job responsibilities to encourage appropriate ethical decision making. Top management also needs to reinforce codes of ethics and demonstrate the importance of practicing ethical behavior. In addition, training programs should demonstrate how ethical conduct can be valuable for the salesperson, customer, and company even in the presence of guanxi. Clear guidance is important to both firms and salespeople. It could help salespeople become keenly alert about ethically problematic situations and make appropriate judgments about them. The end result could create an ethically healthier environment for business transactions and further avoid preference, fraud, and abuse.

The Impact of Guanxi on Logistics Service Value

Under the context of relationship, the concept of guanxi is an ambiguous term that embeds Chinese philosophy of social structure and interactions. The purpose of this study is to examine the relationship between logistics service value, relationship quality, guanxi and the financial performance of Thai shippers. To do so, this study uses a structural equation model (SEM), as it is the most appropriate multivariate analytical technique to estimate multiple and interrelated dependent relationships. The method embraces unobserved con- cepts that are termed constructs, latent variables and factors, thus allowing the researcher to handle a large number of endogenous and exogenous variables (Hair et al., 2010). The study results show that guanxi had a significant positive effect on logistics service value and financial performance. Logistics service value, however, did not have a significant effect on financial performance, nor did guanxi on relationship quality. The results provide a better understanding of the role relationships play in the context of logistics service value and how it can affect financial performance. They also can be used as a guideline in making strategic business decisions with Asian businesses.

The impact of guanxi, xinyong and buyer collaboration on the loyalty and financial performance of vegetable farmers in China

Purpose – The purpose of this paper is to examine the impact of two Chinese cultural constructs, guanxi (networks) and xinyong (interpersonal trust) in the burgeoning vegetable supply chains. Design/methodology/approach – Data were collected using a validated survey instrument and 520 usable responses were obtained from vegetable farmers in three main vegetable producing provinces of China. Findings – The findings revealed that farmers' guanxi promotes xinyong and collaboration of buyers. It was also determined that xinyong is the key mediator between guanxi and the two outcomes, loyalty and financial performance of farmers. Additionally, xinyong influences collaboration of the buyer. Research limitations/implications – This paper offers strategic insights into both academicians and practitioners associated with the vegetable industry regarding enhancement of inter-organisational relationships (loyalty) and financial performance of farmers in China through the embedded concepts of guanxi and xinyong. Originality/value – Despite its potential importance, relatively little is known about these two concepts especially with respect to supply chains of fresh produce.

An institutional analysis of Chinese business relationships

Understanding Chinese business practices and relationships has become increasingly important for international firms. One of the common threads for international firms is the importance of a special relational aspect of Chinese markets, called guanxi. The impact of guanxi on value chain management is under-researched but increasingly gaining attention. This paper takes a more novel approach by reviewing guanxi in terms of its institutional rather than simply its often-cited cultural implications. It adopts and adapts the ecocultural framework of John Berry and incorporates Robert Trivers theory of reciprocal altruism in an attempt to shed light on the practice of guanxi in eight Chinese related polities. The eight polities are investigated using a qualitative methodology. The design of the study incorporates two phases with focus groups and an online survey. The study acknowledges that the institution of guanxi has important implications for all polities researched but it remains an essential and powerful force in the mainland Chinese polities of Shanghai and Beijing. Subsequently, the relational dynamic of guanxi remains an essential element in value chain management in Chinese contexts, particularly for chains operating on the mainland. As the paper also contends, this has important implications for both Chinese and Western firms.

The impact of Guanxi on Chinese managers' transactional decisions: A study of Taiwanese SMEs

Guanxi is an important source of competitive advantage; managers in Chinese enterprises have especially placed enormous emphasis on it. The purpose of this study is to investigate the relationship between managers' initiative toward a Guanxi formation and their transactional decisions within the network. Findings of this study suggest that managers' initiative in setting up a Guanxi network has important impact on their perceptions toward members in the network; and in turn, the perception has an impact on their transactional decisions within the Guanxi network. More specifically, managers would employ relational mark-down and compensatory mark-up to differentiate Guanxi members from non-Guanxi members in making transactional decisions.

The Impact of Guanxi on Export Performance

Summary Broadly defined as interpersonal relationship in Chinese society, guanxi embodies several intricate and unique Chinese cultural values. Although more and more western business people are becoming increasingly aware of the importance of guanxi in doing business in China, its potential impacts on the performance of business are still not well understood by western business people. This paper uses path analysis to assess the impacts of guanxi on export performance of a sample of New Zealand firms exporting to China. The results show that guanxi variables significantly facilitate trade partnering, business negotiating, and problem solving and generally contributes positively to the overall export performance of firms.

The Impact of Guanxi on the Ethical Decision-Making Process of Auditors – An Exploratory Study on Chinese CPAs in Hong Kong

Using professional accountants as respondents in Hong Kong, this study strives to develop a model to depict the effect of ethical reasoning on the relationships between guanxi and auditors; behaviour in an audit conflict situation. The results of the study found that (1) there is a significant relationship between an auditor's ethical judgement and one's moral cognitive development; (2) there is a relationship between an auditor's ethical judgement and the existence of guanxi; and (3) the impact of guanxi on an auditor's judgement is depending on the level of ethical reasoning.