The role of Guanxi networks in vegetable supply chains: Empirical evidence from Jiangsu Province, P.R. China

This s tudy at tempt s to empirically inves tigate the effect of guanxinetworks on buyer - seller relationships and on firm performance invegetable indus t ry in P.R. China. We interviewed 167 vegetable producersand 84 companies to tes t our conceptual relationship mo del. Resultsdemons t rate that guanxi networks significantly improve buyer - sellerrelationships regarding interper sonal t rus t and t ransaction specificinvestment s. Buyer - seller relationships show significant impacts on chainperformance. Results imply that the effects of guanxi networks differ forproducers and companies in the chains. Study also revealed thatt ransaction related at t ributes (risk, channel requirement s and t ransactionconditions) also influence buyer - seller relationships and chainperformance jointly with guanxi networks. Paper ends with severalmanagerial implications regarding the use of guanxi networks in businesspractices.