The role of guanxi in channel development : the case of China industrial market

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The role of guanxi in channel development : the case of China industrial market

 

Author: Li, On-tak Andrew
Title: The role of guanxi in channel development : the case of China industrial market
Degree: M.B.A.
Year: 2001
Subject: Hong Kong Polytechnic University -- Dissertations
Industrial marketing
Relationship marketing
Department: Dept. of Management
Pages: 51 leaves ; 30 cm
Language: English
InnoPac Record: http://library.polyu.edu.hk/record=b1611620
URI: http://theses.lib.polyu.edu.hk/handle/200/2020
Abstract: How to cope with your distributor in China? Local adaptation of Chinese "Guanxi" theory to supplement western channel management is given in this study. This paper reviews the western channel management theory, transaction cost analysis and relational development theory as a framework, comparing it with the Chinese networking theory "guanxi" and develops a model to assist practitioners in the international market gain deeper insight and seek the way to better channel performance. Four firms entering into guanxi-type system with its supplier, their response and consequence will be explained by the relational development theory with supplement to "guanxi" system. Guanxi largely reduces the opportunistic behaviour and encourages the commitment from the Chinese counterpart and at the same time enhances the channel performance as well.

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