Is guanxi important in a buyer-supplier relationship? case of Chinese logistics industry
Faculty / School
Faculty of Business Administration (FBA)
Department of Management
Was this content written or created while at IBA?
Journal of Asia Business Studies
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.
HJRS - X Category, Scopus, Web of Science - Emerging Sources Citation Index (ESCI)
Butt, A. S., Shah, S. H., & Sheikh, A. Z. (2020). Is guanxi important in a buyer-supplier relationship? case of Chinese logistics industry. Journal of Asia Business Studies, 14 (1), 1-14. Retrieved from https://ir.iba.edu.pk/faculty-research-articles/135