The role of Guanxi in buyer-supplier relationships in Chinese small and medium-sized enterprises – a resource based perspective

摘要

This paper examines the role of guanxi (personal relationships or connections) in buyersupplier\udrelationships in Chinese small and medium-sized enterprises (SMEs), through exploratory\udresearch that gained access to companies actually using guanxi. The resource-based\udview (RBV) provided a systematic approach for analysing the role of guanxi in terms of its\udpotential to be a source of sustained competitive advantage.\udBusiness guanxi connections were identified as possessing the potential to be considered\udan organisational resource. This study identified several valuable attributes of guanxi at\udthe organisational level. However, the guanxi-based advantage can only be sustained under\udcertain conditions. SMEs should create an organisational environment that encourages their\udemployees to actively establish and maintain guanxi connections within the company and\udbeyond. However, companies in China need to recognise that firms that possess superior\udtechnological skills or capabilities have a stronger bargaining power, as they are able to deliver\udquality at competitive prices over the long run.