Development of a global management model and verification of the connotation of “Guanxi” in contemporary Chinese marketing channels

Xiaoqin Wu, Chaiyanant Panyasiri, Li Zhang

Article ID: 8382
Vol 8, Issue 15, 2024

VIEWS - 408 (Abstract)

Abstract


This study aims to explore the connotation of “Guanxi” within contemporary Chinese marketing channels and to construct and verify a global management model. The objective is to examine how instrumental and emotional dimensions of Guanxi influence enterprise operations and management processes. A hybrid research methodology combining qualitative and quantitative approaches was employed. In-depth interviews with 30 dealer executives provided qualitative insights, while a large-scale survey with 305 valid responses facilitated quantitative analysis. SPSS22.0 and LISREL8.8 were utilized for data analysis, including reliability, validity, hypothesis testing, and structural equation modeling (SEM). The findings reveal that Guanxi is multi-dimensional, comprising both instrumental and emotional components. Instrumental Guanxi includes factors such as status, prestige, credibility, and decision-making power, while emotional Guanxi encompasses trust, emotional connection, and mutual respect. Both dimensions significantly affect professionalism, shared values, contact frequency, and popularity within marketing channels. Hypothesis testing confirmed the significant relationships between these variables, except for the non-significant impact of popularity on instrumental Guanxi. The mediating effects of flexibility and supervision on the relationship between Guanxi and corporate performance were also significant, highlighting the mechanisms through which Guanxi influences organizational outcomes. Moderating effects of perceived internal incentive fairness and digital collaboration capabilities further amplify these relationships. Finaly, the study underscores the dual importance of strategic utility and emotional resonance in Guanxi, providing a robust model for understanding its impact on business management. These insights are valuable for both researchers and practitioners aiming to leverage Guanxi in enhancing organizational performance and relational strategies.


Keywords


Guanxi; Chinese marketing channels; instrumental Guanxi; emotional Guanxi; business management; relationship management; structural equation modeling

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References


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