Does guanxi influence firm performance?

Abstract

It is widely acknowledged that guanxi constitutes a key strategic factor affecting firm performance in the greater China area. However, very little empirical research on the issue has been done in the literature. In this study we explore the systematic linkage between guanxi and firm performance from a business strategy perspective. The evidence shows that guanxi-based business variables have a profound and positive impact on firm efficiency and growth. © 1997 BY JOHN WILEY & SONS (ASIA) LTD.