Is guanxi important in a buyer-supplier relationship? Case of Chinese logistics industry. Issue 1 (19th December 2019)

• Record Type: Journal Article
• Authors: Butt, Atif Saleem; Shah, Syed Hamad Hassan; Sheikh, Abdullah Zafar
• Is Part Of: Journal of Asia business studies. Volume 14:Issue 1(2020)
• Page Start: 1
• Page End: 14
• Publication Date: 2019-12-19
• Subjects: Buyer–supplier relationships -- Guanxi -- Logistics industry -- China -- Case study -- Logistics -- Buyer–supplier exchange; Asia -- Commerce -- Periodicals; Asia -- Economic conditions -- 21st century -- Periodicals; China -- Commerce -- Periodicals; Asia -- Foreign economic relations -- Periodicals; 338.95005
• DOI: 10.1108/JABS-04-2019-0127
• Languages: English
• ISSNs: 1558-7894

Abstract

Abstract : 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.