Abstract
This study explores the differential impacts of guanxi and relationship marketing, both at the interpersonal and interorganisational level, within the port logistics industry. We compare the effects of these two marketing approaches on outcome variables to elucidate managerial implications for logistics firms conducting cross-cultural business. The PLS-SEM method is used to analyse data from a survey of logistics companies in Taiwan and Panama. In both countries, interpersonal relationships engender significant effects on interorganisational relationships, and firm performance has significant effects on firm loyalty. As regards the determinants of supply-chain effectiveness and firm performance, we show that interpersonal relationships play a more important role in Taiwan, while interorganisational relationships have more weight in Panama. In other words, Asian companies focus on guanxi marketing at the personal level, while Latin American ones focus on relationship marketing at the interorganisational level. These findings and consequent knowledge can help companies conducting business in Asia and Latin America to adapt to counterpart’s cultural business practices.
Similar content being viewed by others
References
Ablonczy-Mihályka, L. 2009. Business communication between people with different cultural backgrounds. Proceedings of the Conference of the International Journal of Arts and Sciences 1 (19): 121–129.
Barnes, B.R., E. Yen, and L. Zhou. 2011. Investigating guanxi dimensions and relationship outcomes: Insights from Sino-Anglo business relationships. Industrial Marketing Management 40 (4): 510–521.
Benton, W.C., and L.J. Krajewski. 1990. Vendor performance and alternative manufacturing environment. Decision Sciences 21 (2): 403–415.
Bichou, K., and R. Gray. 2004. A logistics and supply chain management approach to port performance measurement. Maritime Policy & Management 31 (1): 47–67.
Bollen, K.A. 1989. Structural equations with latent variables. New York, NY: Wiley.
Chen, N.Y.F., D. Tjosvold, and P. Wu. 2008. Effects of relationship values and goal interdependence on guanxi between foreign managers and Chinese employees. Journal of Applied Social Psychology 38 (10): 2440–2468.
Deng, Y. 1997. Promoting Asia-Pacific economic cooperation: Perspectives from East Asia. Basingstoke: Macmillan.
Felício, J.A., V. Caldeirinha, and A. Dionísio. 2015. The effect of port and container terminal characteristics on terminal performance. Maritime Economics & Logistics 17 (4): 493–514.
Gaskin, J. 2012. SmartPSL Multigroup Moderation, Retrieved 10 October, 2013, from http://statwiki.kolobkreations.com.
Gu, F.F., K. Hung, and D.K. Tse. 2008. When does Guanxi matter? Issues of capitalization and its dark sides. Journal of Marketing 72 (4): 12–28.
Hair, J.F., W.C. Black, B.J. Babin, and R.E. Anderson. 2010. Multivariate data analysis: A global perspective. Upper Sadder River, NJ: Prentice Hall.
Hair, J.F., G.T.M. Hult, C.M. Ringle, and M. Sarstedt. 2014. A primer on partial least squares structural equation modeling (PLS-SEM). Thousand Oaks: Sage.
Hair, J.F., C.M. Ringle, and M. Sarstedt. 2011. PLS-SEM: Indeed a silver bullet. Journal of Marketing Theory and Practice 19 (2): 139–151.
Hammond, S.C., and L.M. Glenn. 2004. The ancient practice of Chinese social networking: Guanxi and social network theory. E:CO Special Double Issue 6(1–2): 24–31.
Hitt, M.A., R.E. Hoskisson, and D. Ireland. 2007. Management of strategy: Concepts and cases. Australia: Thomson/South Western.
Hu, Z.Y. 2013. Customer relationship management to create customer value, 2nd ed. New Taipei City, Taiwan: New Wun Ching Development Publishing.
Kotler, P., and K.L. Keller. 2007. Marketing management. Pearson education.
Kwong, K., and K. Wong. 2013. Partial least squares structural equation modeling (PLS-SEM) techniques. Marketing Bulletin 24: 1–32.
Lages, L.F., A. Lancastre, and C. Lages. 2008. The B2B-RELPERF scale and scorecard: Bringing relationship marketing theory into business-to-business practice. Industrial Marketing Management 37 (6): 686–697.
Lam, J.S.L., and W.Y. Yap. 2011. Dynamics of liner shipping network and port connectivity in supply chain systems: analysis on Esat Asia. Journal of Transport Geography 19: 1272–1281.
Lee, D.Y., and P.L. Dawes. 2005. Guanxi, trust, and long-term orientation in Chinese business markets. Journal of International Marketing 13 (2): 28–56.
Li, W., P.K. Humphreys, A.C.L. Yeung, and T.C.E. Cheng. 2012. The impact of supplier development on buyer competitive advantage: A path analytic model. International Journal of Production Economics 135 (1): 353–366.
Luk, C., O.H.M. Yau, L.Y.M. Sin, A.C.B. Tse, R.P.M. Chow, and J.S.Y. Lee. 2008. The effect of social capital and organizational innovativeness in different institutional contexts. Journal of International Business Studies 30 (2): 231–248.
Lun, Y.H.V., K.H. Lai, and T.C.E. Cheng. 2010. Shipping and logistics management. Springer.
Luo, Y., and M. Chen. 1997. Does guanxi influence firm performance? Asia Pacific Journal of Management 14 (1): 1–16.
Mavondo, F.T., and E.M. Rodrigo. 2001. The effect of relationship dimensions on interpersonal and interorganisational commitment in organizations conducting business between Australia and China. Journal of Business Research 52 (2): 111–121.
Morgan, R.M., and S.D. Hunt. 1994. The commitment-trust theory of relationship marketing. Journal of Marketing 58 (3): 20–38.
Mullen, B., and C. Johnson. 1990. The psychology of consumer behavior. Hillsdale, New Jersey: Lawrence Erlbaum Associates.
Palmatier, R.W. 2008. Relationship marketing. Marketing Science Institute: Cambridge.
Palmatier, R.W., L.K. Scheer, M.B. Houston, K.R. Evans, and S. Gopalakrishna. 2007. Use of relationship marketing programs in building customer–salesperson and customer–firm relationships: Differential influences on financial outcomes. International Journal of Research in Marketing 24 (3): 210–223.
Panayides, P.M. 2007. The impact of organizational learning on relationship orientation, logistics service effectiveness and performance. Industrial Marketing Management 36 (1): 68–80.
Panayides, P.M., and M. So. 2005. Logistics service provider–client relationships. Transportation Research Part E: Logistics and Transportation Review 41 (3): 179–200.
Park, S.H., and Y.D. Luo. 2001. Guanxi and organizational dynamics: Organizational networks in Chinese firms. Strategic Management Journal 22 (5): 455–477.
Peng, M.W., and P. Heath. 1996. The growth of the firm in planned economies in transition: Institutions, organizations, and strategic choices. Academy of Management Review 21 (2): 492–528.
Peng, M.W., D.Y.L. Wang, and Y. Jiang. 2008. An institution-based view of international strategy: A focus on emerging economies. Journal of International Business Studies 39 (5): 920–936.
Pesämaa, O., T. Pieper, dSR Vinhas, W.C. Black, and J.F. Hair Jr. 2013. Trust and reciprocity in building inter-personal and inter-organizational commitment in small business co-operatives. Journal of Co-operative and Management 1 (2): 81–92.
Pfeffer, J., and G.R. Salancik. 1978. The external control of organizations: A resource dependence perspective. New York: Harper & Row.
Poujol, J.F., B. Siadou-martin, D. Vidal, and G. Pellat. 2013. The impact of salespeople’s relational behaviors and organizational fairness on customer loyalty: An empirical study in B-to-B relationships. Journal of Retailing and Consumer Services 20 (5): 429–438.
Ramanathan, R. 2010. The moderating roles of risk and efficiency on the relationship between logistics performance and customer loyalty in e-commerce. Transportation Research Part E 46 (6): 950–962.
Ringle, C.M., S. Wende, and S. Will. 2005. SmartPLS 2.0 M3 Beta, Retrieved October 10, 2013, from www.smartpls.de.
Sarstedt, M., J. Henseler, and C.M. Ringle. 2011. Multigroup analysis in partial least squares (PLS) path modeling: Alternative Methods and Empirical Results. In Marko Sarstedt, Manfred Schwaiger, Charles R. Taylor ed. Measurement and Research Methods in International Marketing Advances in International Marketing, vol. 22, 195–218. Emerald Group Publishing Limited.
SchedNet. 2005. Kuehne & Nagel is tops in logistics: Chairman. Shipping News 7 May 2005.
Shaalan, S., J. Reast, D. Johnson, and M.E. Tourky. 2013. East meets West: Toward a theoretical model linking guanxi and relationship marketing. Journal of Business Research 66 (12): 2515–2521.
Shen, J., and G. Kee. 2017. Development and planning in seven major coastal cities in Southern and Eastern China. Berlin: Springer.
Shou, Z., J. Chen, W. Zhu, and L. Yang. 2014. Firm capability and performance in China: The moderating role of guanxi and institutional forces in domestic and foreign contexts. Journal of Business Research 67 (2): 77–82.
Van der Lught, L.M., S.B. Rodrigues, and R. van den Berg. 2014. Co-evolution of the strategic reorientation of port actors: Insights from the Port of Rotterdam and the Port of Barcelona. Journal of Transport Geography 41: 197–209.
Wang, C.L. 2007. Guanxi vs. relationship marketing: Exploring underlying differences. Industrial Marketing Management 36 (1): 81–86.
Wang, Y., L. Huang, and Y. Guo. 2013. Integrating declarative and imperative approach to model logistics service processes. Journal of Industrial Engineering and Management 6 (1): 237–248.
Wang, G., X. Wang, and Y. Zheng. 2014. Investing in guanxi: An analysis of interpersonal relation-specific investment (RSI) in China. Industrial Marketing Management 43 (4): 659–670.
Yau, O.H.M., J.S.Y. Lee, R.P.M. Chow, L.Y.M. Sin, and A.C.B. Tse. 2000. Relationship marketing the Chinese Way. Business Horizons 43 (1): 16–24.
Yen, D.A., B.R. Barnes, and C.L. Wang. 2011. The measurement of guanxi: Introducing the GRX scale. Industrial Marketing Management 40 (1): 97–108.
Yeung, K., H. Zhou, A.C.L. Yeung, and T.C.E. Cheng. 2012. The impact of third-party logistics providers’ capabilities on exports’ performance. International Journal of Production Economics 135 (2): 741–753.
Zhang, Y., and Z. Zhang. 2006. Guanxi and organizational dynamics in China: A link between individual and organizational levels. Journal of Business Ethics 67 (4): 375–392.
Author information
Authors and Affiliations
Corresponding author
Appendix
Appendix
See Table 8.
Rights and permissions
About this article
Cite this article
Chen, MC., Chang, KC., Hsu, CL. et al. Investigating the impacts of guanxi and relationship marketing in port logistics: two cases. Marit Econ Logist 20, 603–623 (2018). https://doi.org/10.1057/s41278-017-0084-6
Published:
Issue Date:
DOI: https://doi.org/10.1057/s41278-017-0084-6