The role of Guanxi in supply management practices

Ka Chun Lee, Paul K. Humphreys

Research output: Journal article publicationJournal articleAcademic researchpeer-review

75 Citations (Scopus)

Abstract

Guanxi has been identified as having an important influence on business behavior. This paper investigates the influence of guanxi on three elements of supply chain management: strategic purchasing, outsourcing, and supplier development. Survey data was collected from 175 companies in the electronics sector of Hong Kong. The results indicate that guanxi has a significant influence on these three supply management constructs. The managerial implications are examined from a relationship perspective and in terms of transaction cost economic theory. The failure to appropriately assess the impact of guanxi-based supply management practices can have a detrimental effect on organizations attempting to enter the Chinese market.
Original languageEnglish
Pages (from-to)450-467
Number of pages18
JournalInternational Journal of Production Economics
Volume106
Issue number2
DOIs
Publication statusPublished - 1 Apr 2007

Keywords

  • Guanxi
  • Outsourcing
  • Strategic Purchasing
  • Supplier Development.
  • Supply Management

ASJC Scopus subject areas

  • Business, Management and Accounting(all)
  • Economics and Econometrics
  • Management Science and Operations Research
  • Industrial and Manufacturing Engineering

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