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Localization in China: How guanxi moderates Sino–US business relationships

Dorothy Ai-wan Yen and Ibrahim Abosag

Journal of Business Research, 2016, vol. 69, issue 12, 5724-5734

Abstract: Understanding and adapting to local cultures has long been considered as an important part of successful localization, yet extant literature has not discussed how the adoption of cultural-specific construct as tools of localization facilitates successful b2b relationships with local counterparts. Whilst international companies are increasingly concerned with their business performance in China, this study believes b2b firms should engage the cultural-specific concept of guanxi (interpersonal ties) as a tool of localization when interacting with Chinese counterparts for better financial performance and long-term orientation. Using data collected from 299 Chinese buyers regarding their Sino–US business relationships, the results reveal that the relations between trust and financial performance and between uncertainty and long-term orientation are moderated by guanxi. The findings shed further light on localization literature with evidence highlighting the impact of guanxi in localizing b2b relationship activities in China.

Keywords: Business relationships; China; Guanxi; Localization; Sino–US (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (16)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:69:y:2016:i:12:p:5724-5734

DOI: 10.1016/j.jbusres.2016.05.002

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