Guanxi orientation, value creation and value capture in buyer-supplier relationships: a dyadic perspective

Purpose This paper aims to investigate the importance and prevalence of Guanxi in business interactions in network-based societies such as China, few studies have the phenomenon from a dyadic view. In a business dyad, one partner may not value Guanxi and take it as a template for actions as the othe...

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Bibliographic Details
Published in:Chinese management studies 2021-03, Vol.15 (1), p.44-67
Main Authors: Lee, Lucy Sojung, Zhong, Weiguo
Format: Article
Language:English
Subjects:
Hypotheses
Investigations
Orientation
Pies
Socialization
Suppliers
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Summary:Purpose This paper aims to investigate the importance and prevalence of Guanxi in business interactions in network-based societies such as China, few studies have the phenomenon from a dyadic view. In a business dyad, one partner may not value Guanxi and take it as a template for actions as the other does. Design/methodology/approach The authors propose that such collective and asymmetric Guanxi orientation influence both the creation and distribution of relational rent in a Guanxi dyad. Furthermore, relationship-specific investments (RSIs) moderate the relationship between dyadic Guanxi orientation and relational rent creation and distribution. Findings Based on a matched sample of supplier-buyer dyads in China, the authors find that joint Guanxi orientation is positively related to joint pie creation, whereas Guanxi orientation imbalance has a positive effect on the pie distribution imbalance. Originality/value These results contribute to the literature by revealing how dyadic Guanxi dynamics and practices affect dyadic performance and providing managers with meaningful implications for dyadic Guanxi management.
ISSN:1750-614X
1750-6158
DOI:10.1108/CMS-08-2019-0285