Is guanxi important in a buyer-supplier relationship? Case of Chinese logistics industry
Purpose: The purpose of this paper is to unveil negative outcomes associated with an absence of guanxi in a buyer–supplier relationship in Chinese logistics industry. Design/methodology/approach: This study uses a case study methodology using 16 semi-structured interviews with managers engaged in the process of buying and selling logistics services in China. Findings: Based on the qualitative interviews, managers experience lack of trust, lack of communication flow and reduced business volume when guanxi is absent in a buyer–supplier relationship in the Chinese logistics industry. Research limitations/implications: This study has some limitations. First, the results of this study are not generalizable to a broader population. Second, this study explores behavioral patterns with respect to Chinese business culture only. Practical implications: Firms can use the findings from this study to understand the consequence they can face when guanxi is absent in a buyer–supplier relationship. Originality/value: This study attempts to offer a balanced perspective on the role of guanxi in a buyer–supplier relationship, particularly in the Chinese logistics industry, by considering how an absence of guanxi generates negative outcomes for firms.
Year of publication: |
2020
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Authors: | Butt, Atif Saleem ; Shah, Syed Hamad Hassan ; Sheikh, Abdullah Zafar |
Published in: |
Journal of Asia Business Studies. - Emerald, ISSN 1558-7894, ZDB-ID 2589599-0. - Vol. 14.2020, 1 (06.01.), p. 1-14
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Publisher: |
Emerald |
Saved in:
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