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  • Rethinking Guanxi and Performance: Managing the Dark Side of Sino–U.S. Business Relationships

    Rights statement: This is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, ??, ??, 2021 DOI: 10.1016/j.ibusrev.2020.101775

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Rethinking Guanxi and Performance: Understanding the Dark Side of Sino–U.S. Business Relationships

Research output: Contribution to Journal/MagazineJournal articlepeer-review

E-pub ahead of print
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<mark>Journal publication date</mark>9/12/2020
<mark>Journal</mark>International Business Review
Volume0
Pages (from-to)0-0
Publication StatusE-pub ahead of print
Early online date9/12/20
<mark>Original language</mark>English

Abstract

Previous studies on guanxi (關係) have focused on how guanxi contributes positively to business relationships, without addressing the pivotal role that guanxi plays in managing the dark side of business relationships. Such a role includes direct reduction of the dark side in business relationships but guanxi also plays a key mediating role providing further reduction of the dark side. Specifically, this study investigates guanxi’s influence on conflict, opportunism, and switching intention in Sino–U.S. business relationships. Drawing on data from over 270 Chinese firms, the findings reveal that whilst guanxi is undermined by relationship uncertainty and enhanced by performance, guanxi does indeed reduce the dark side of Sino-U.S. business relationships. Chinese buyers’ guanxi with U.S. suppliers significantly reduces their switching intention, opportunistic behavior, and the perceived levels of conflict in such relationships. Chinese buyers therefore employ guanxi as a tool to reduce the burden associated with the dark side of business relationships.

Bibliographic note

This is the author’s version of a work that was accepted for publication in International Business Review. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in International Business Review, ??, ??, 2021 DOI: 10.1016/j.ibusrev.2020.101775