Influencing Factors Of Interorganizational Guanxi And Firm Performance

This paper is divided into five parts,the first chapter is literature review.China is a reasonable society.The study of the "relationship" of the Chinese people has risen rapidly since the reform and opening up.Domestic and foreign scholars from a variety of angles on this theory and methodology of the discussion.This paper summarizes the previous research results.Elaborated the essence of reason society:Ask people to do things,do not completely follow the rational,logical and laws and regulations,rules and regulations,but also from the context of a specific point of view to consider.To learn to strike a balance between the two.The second chapter constructs a theoretical framework.And put forward some assumptions about relationship utilization and firm performance:non-state-owned,non-open areas,small,market-oriented strategy,enterprises are more likely to use relationships than state-owned,open areas,large,efficiency-oriented strategy enterprises.Relationships lead to improved business performance,but only to promote sales growth,and little impact on profit growth.Chapter 3 is based on the definition of relational variables.Our findings,based on a survey of 128 firms in central China,provide strong support that institutional,strategic,and organizational factors are critical determinants of guanxi with competitive forces.However,only institutional and strategic factors are significant for guanxi utilization with government authorities.In general,guanxi leads to higher firm performance,but is limited to increased sales growth,and has little impact on profit growth.Guanxi benefits market expansion and competitive positioning of firms,but does not enhance internal operations.Chapter 5 summarizes the conclusions and prospects.This paper focuses on the utilization of guanxi,which is an important cultural and social element in China,and the impact of guanxi on firm performance.Although guanxi is embedded in every aspect of Chinese social life,companies demonstrate different needs and capacity for guanxi cultivation.Chinese firms develop guanxi as a strategic mechanism to overcome competitive and resource disadvantages by cooperating and exchanging favors with competitive forces and government authorities.We develop an integrative framework theorizing guanxi utilization according to institutional,strategic,and organizational factors,and we explore the impact of guanxi on firm performance,primarily sales growth and net profit growth.