Online citations, reference lists, and bibliographies.

Guanxi And Organizational Dynamics: Organizational Networking In Chinese Firms

Seung Ho Park, Yadong Luo
Published 2001 · Business
Cite This
Download PDF
Analyze on Scholarcy
Share
This paper focuses on the utilization of guanxi, which is an important cultural and social element in China, and the impact of guanxi on firm performance. Although guanxi is embedded in every aspect of Chinese social life, companies demonstrate different needs and capacity for guanxi cultivation. Chinese firms develop guanxi as a strategic mechanism to overcome competitive and resource disadvantages by cooperating and exchanging favors with competitive forces and government authorities. We develop an integrative framework theorizing guanxi utilization according to institutional, strategic, and organizational factors, and we explore the impact of guanxi on firm performance, primarily sales growth and net profit growth. Our findings, based on a survey of 128 firms in central China, provide strong support that institutional, strategic, and organizational factors are critical determinants of guanxi with competitive forces. However, only institutional and strategic factors are significant for guanxi utilization with government authorities. In general, guanxi leads to higher firm performance, but is limited to increased sales growth, and has little impact on profit growth. Guanxi benefits market expansion and competitive positioning of firms, but does not enhance internal operations. Copyright © 2001 John Wiley & Sons, Ltd.



This paper is referenced by
10.4337/9781783470426.00027
Knowledge management in China’s organisations
Amit Mitra (2014)
La capacité d'absorption des PMEs intégrées dans des réseaux d'innovation collaboratifs : évaluation à travers une grille de maturité
Lamiae Benhayoun Sadafiyine (2017)
Identity Constructions of Sales Managers: The Chinese Guanxi Milieu.
Juanjuan Ou (2011)
Relationships between Entrepreneurial Factors and the Technical Efficiency of Eastern and Non-eastern Private Manufacturing SMEs in China
Leqi Zhao (2019)
10.14793/acct_etd.7
How do institutions affect auditor reporting behavior? empirical evidence from China
Yang An (2007)
Achieving superiority in product and customer performance through marketing and innovation resource-capability combinations
Phyra Sok (2012)
10.1016/j.jbusvent.2013.04.001
Entrepreneurial orientation, market orientation, network ties, and performance: Study of entrepreneurial firms in a developing economy
Nathaniel Boso (2013)
Control dynamics in a Chinese-German joint venture
Narisa Tianjing Dai (2010)
Social Media-Enabled Individual Dynamic Capabilities: The Boundary Spanning Perspective
Wei He (2019)
10.1080/00036846.2014.887196
The impact of social identity on trust in China: experimental evidence from cross-group comparisons
Weiwei Weng (2014)
10.1016/j.ibusrev.2020.101689
How do local and foreign firms compete? Competitive actions in an emerging economy
Wei Yang (2020)
10.1080/17538963.2010.562043
On the role of personal relationships for doing business in the Greater Pearl River Delta, China
Frank Bickenbach (2010)
10.1108/02635571011077834
Managerial networks and strategic flexibility: a QM perspective
Leopoldo J. Gutierrez Gutierrez (2010)
10.1177/2393957519891041
How Does the Man-Know-Man Network Culture Influence Transnational Entrepreneurship?
Kingsley C. Njoku (2020)
Effects of relational embeddedness on knowledge acquisition: An empirical study in China
Guannan Xu (2013)
10.1016/J.JBUSRES.2016.12.025
The dyadic structure of exchange partners' governing-agency social capital and opportunism in buyer–supplier relationships
Fue Zeng (2017)
10.2991/assehr.k.200306.164
The Effects of Destructive Behaviors on Channel Cooperation and Guanxi
Guangyang Yin (2020)
10.1111/TESG.12226
Knowledge Search Pattern and Product Innovation of Firms in Low and High‐Technology Industrial Clusters: A Knowledge Relatedness Perspective
Aiqi Wu (2017)
10.1177/0149206310372413
Multilevel Challenges and Opportunities in Social Capital Research
G. Tyge Payne (2011)
10.1080/13602381.2016.1161889
Guanxi, political connections and resource acquisition in Chinese publicly listed private sector firms
Han Yu (2017)
A Network Perspective of Value Co-Creation in Cross-Border Relationships: Changing from 'One of Them' to 'One of Us'
Ruoyi Sun (2013)
Etude des aspects stratégiques du processus de formation d'accords de collaboration chez les grands constructeurs informatiques
Olivier Mortehan (2003)
10.1080/08974430903372815
Guanxi Networks, Buyer-Seller Relationships, and Farmers' Participation in Modern Vegetable Markets in China
Hua-liang Lu (2010)
10.1016/J.JOM.2016.07.004
Contract ineffectiveness in emerging markets: An institutional theory perspective⋆
Zhigang Shou (2016)
10.1177/0149206314548226
Examining the Complementary Effect of Political Networking Capability With Absorptive Capacity on the Innovative Performance of Emerging-Market Firms
Masaaki Kotabe (2017)
10.1080/09585192.2014.908316
The effect of leadership style on talent retention during Merger and Acquisition integration: evidence from China
Jiali Zhang (2015)
10.1108/NBRI-03-2014-0014
The mediating roles of renqing and ganqing in Chinese relationship marketing
Xinhua Zhou (2015)
10.1177/1069397115609560
Understanding Cross-National Differences in Risk Through a Localized Cultural Perspective
Junsu Park (2016)
10.1016/J.INTMAN.2015.10.003
Strategic guanxi orientation: How to manage distribution channels in China?
Janet Y. Murray (2016)
10.2139/ssrn.1837578
The Adolescence of Family Firm Research: Taking Stock and Planning for the Future
Eric Gedajlovic (2011)
10.1007/S10490-017-9549-5
An institutional response model to economic liberalization: Japanese MNEs’ ownership choices in China
Megan Min Zhang (2019)
10.1016/J.EMJ.2016.03.002
Decision making and paradox: Why study China?
Mariya Eranova (2016)
See more
Semantic Scholar Logo Some data provided by SemanticScholar