How much does interpersonalguanximatter to business performance? The mediating role of relationship learning in an emerging market context

Lilei Wang, Yumei Dang, Shufeng (Simon) Xiao and Xing'an Xu

International Journal of Emerging Markets, 2022, vol. 19, issue 10, 2946-2965

Abstract: Purpose - By adopting learning theory and aguanxiperspective, this study aims to investigate the effects of interpersonalguanxi(interpersonal networks or connections) and relationship learning on companies’ business performance when operating in a large emerging market. Design/methodology/approach - Using a sample of 294 sales managers and salespeople in the Chinese hotel sector, the authors empirically test the authors' arguments through a structural equation modeling (SEM) approach. Findings - The authors' findings indicate that strong interpersonalguanxitends to generate more positive business performance. Furthermore, the authors find that relationship learning plays a mediating role in the association between interpersonalguanxiand hotel companies’ business performance in a Chinese context. Finally, the authors empirically explore the moderating effect of inter-firm dependence on the contribution of interpersonalguanxito relationship learning. Findings demonstrate that this effect varies significantly based on inter-firm dependence, with interpersonalguanxiexhibiting a greater positive impact if such dependence is high. Originality/value - This study enriches our understanding of interpersonalguanxiand of how companies can enhance the companies' business performance in an emerging market context.

Keywords: Interpersonal guanxi; Business performance; Relationship learning; Inter-firm dependence; China (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijoemp:ijoem-01-2022-0175

DOI: 10.1108/IJOEM-01-2022-0175

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