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

Abstract

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.

Citation

Lee, L.S. and Zhong, W. (2021), "Guanxi orientation, value creation and value capture in buyer-supplier relationships: a dyadic perspective", Chinese Management Studies, Vol. 15 No. 1, pp. 44-67. https://doi.org/10.1108/CMS-08-2019-0285