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Article: When does Guanxi matter? Issues of capitalization and its dark sides

TitleWhen does Guanxi matter? Issues of capitalization and its dark sides
Authors
KeywordsChina Market
Guanxi
Personal Connections
Social Capital Theory
Transitional Economy
Issue Date2008
PublisherAmerican Marketing Association. The Journal's web site is located at http://www.marketingpower.com
Citation
Journal Of Marketing, 2008, v. 72 n. 4, p. 12-28 How to Cite?
AbstractGuanxi refers to the durable social connections and networks a firm uses to exchange favors for organizational purposes. This study examines how and when guanxi operates as a governance mechanism that influences firm marketing competence and performance in the transitional economy of China. Drawing on social capital theory, the authors propose an integrative framework that unbundles the benefits and risks of guanxi and delineates the organizational processes to internalize guanxi as a corporate core competence. The authors surveyed senior executives in 282 firms in China's consumer products industries. The findings confirm guanxi's direct effects on market performance and its indirect effects mediated through channel capability and responsive capability. The authors also confirm that technological turbulence and competition intensity can be effective structure-loosening forces, thus reducing the governance effects of guanxi. The findings suggest that firms can improve market access and growth through guanxi networks, but managers need to capitalize on them from the personal to the corporate level. In addition, managers should be aware of guanxi's dark sides, which include reciprocal obligations and collective blindness. This study shows that personal networks are popular universally, but in China, they have unique, distinct ways of operation. © 2008, American Marketing Association.
Persistent Identifierhttp://hdl.handle.net/10722/178009
ISSN
2015 Impact Factor: 3.885
2015 SCImago Journal Rankings: 6.612
ISI Accession Number ID
References

 

DC FieldValueLanguage
dc.contributor.authorGu, FFen_US
dc.contributor.authorHung, Ken_US
dc.contributor.authorTse, DKen_US
dc.date.accessioned2012-12-19T09:41:15Z-
dc.date.available2012-12-19T09:41:15Z-
dc.date.issued2008en_US
dc.identifier.citationJournal Of Marketing, 2008, v. 72 n. 4, p. 12-28en_US
dc.identifier.issn0022-2429en_US
dc.identifier.urihttp://hdl.handle.net/10722/178009-
dc.description.abstractGuanxi refers to the durable social connections and networks a firm uses to exchange favors for organizational purposes. This study examines how and when guanxi operates as a governance mechanism that influences firm marketing competence and performance in the transitional economy of China. Drawing on social capital theory, the authors propose an integrative framework that unbundles the benefits and risks of guanxi and delineates the organizational processes to internalize guanxi as a corporate core competence. The authors surveyed senior executives in 282 firms in China's consumer products industries. The findings confirm guanxi's direct effects on market performance and its indirect effects mediated through channel capability and responsive capability. The authors also confirm that technological turbulence and competition intensity can be effective structure-loosening forces, thus reducing the governance effects of guanxi. The findings suggest that firms can improve market access and growth through guanxi networks, but managers need to capitalize on them from the personal to the corporate level. In addition, managers should be aware of guanxi's dark sides, which include reciprocal obligations and collective blindness. This study shows that personal networks are popular universally, but in China, they have unique, distinct ways of operation. © 2008, American Marketing Association.en_US
dc.languageengen_US
dc.publisherAmerican Marketing Association. The Journal's web site is located at http://www.marketingpower.comen_US
dc.relation.ispartofJournal of Marketingen_US
dc.subjectChina Marketen_US
dc.subjectGuanxien_US
dc.subjectPersonal Connectionsen_US
dc.subjectSocial Capital Theoryen_US
dc.subjectTransitional Economyen_US
dc.titleWhen does Guanxi matter? Issues of capitalization and its dark sidesen_US
dc.typeArticleen_US
dc.identifier.emailTse, DK: davidtse@hku.hken_US
dc.identifier.authorityTse, DK=rp01100en_US
dc.description.naturelink_to_subscribed_fulltexten_US
dc.identifier.doi10.1509/jmkg.72.4.12en_US
dc.identifier.scopuseid_2-s2.0-47849106317en_US
dc.relation.referenceshttp://www.scopus.com/mlt/select.url?eid=2-s2.0-47849106317&selection=ref&src=s&origin=recordpageen_US
dc.identifier.volume72en_US
dc.identifier.issue4en_US
dc.identifier.spage12en_US
dc.identifier.epage28en_US
dc.identifier.eissn1547-7185-
dc.identifier.isiWOS:000257335800002-
dc.publisher.placeUnited Statesen_US
dc.identifier.scopusauthoridGu, FF=8341699100en_US
dc.identifier.scopusauthoridHung, K=15769295600en_US
dc.identifier.scopusauthoridTse, DK=7101916504en_US

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