Staff Publications

Staff Publications

  • external user (warningwarning)
  • Log in as
  • language uk
  • About

    'Staff publications' is the digital repository of Wageningen University & Research

    'Staff publications' contains references to publications authored by Wageningen University staff from 1976 onward.

    Publications authored by the staff of the Research Institutes are available from 1995 onwards.

    Full text documents are added when available. The database is updated daily and currently holds about 240,000 items, of which 72,000 in open access.

    We have a manual that explains all the features 

Record number 355371
Title The role of guanxi in buyer-seller relationships in China : a survey of vegetable supply chains in Jiangsu Province
Author(s) Lu Hualiang,
Source Wageningen University. Promotor(en): Onno Omta, co-promotor(en): Jacques Trienekens. - [S.l.] : S.n. - ISBN 9789085046653 - 252
Department(s) MGS
Business Management & Organisation
Publication type Dissertation, internally prepared
Publication year 2007
Keyword(s) food chains - vegetables - marketing - production - china - trade - markets - businesses - relationships - socioeconomics - supply chain management - agro-industrial chains - networks - social capital - voedselketens - groenten - marketing - productie - china - handel - markten - bedrijven - relaties - sociale economie - ketenmanagement - agro-industriële ketens - netwerken - sociaal kapitaal
Categories Production Chain Management / Vegetables
Abstract Keywords:Social capital,guanxinetworks, vegetable supply chains, buyer-seller relationships, channel performance,China

Guanxiis ubiquitous inChinaand significantly influences people's behaviour in social life and in business. Guanxi refers to personal relationships or connections and is widely recognised as a Chinese form of social capital. This book focuses on the questions, if, and if so, how small-scale producers, together with processors and exporters, can be more successfully integrated into high-value supply chains (i.e., processors, supermarkets and international markets). In particular, our focus is on how Chinese vegetable farmers can use their guanxi networks to be integrated into these modern supply chains and can improve their market performance. We study the effectiveness of both formal (contracts) and relational ( guanxi ) governance mechanisms to improve the integration of buyer-seller relationships and ultimately, to enhance chain performance. We apply various theoretical approaches, supply chain management, social capital theory and transaction cost economics, to develop propositions regarding the interrelation of support from guanxi networks (what guanxi can do for you), buyer-seller relationships (interpersonal trust, transaction specific investments and contractual governance) and market performance (compliance with delivery/quality requirements, efficiency, quality/price satisfaction, and profitability). We combine case study with survey analysis and use structural equation modelling techniques to test the propositions.

Background analysis of the Chinese vegetable sector indicates that small-scale farmers usually fail to integrate into high-value market outlets. This is because these farmers face several constraints, such as small production scale, less possibilities to implement quality standards, low negotiation power, and information asymmetry. However, empirical analysis based on three different buyer-seller relationships, including farmers, processors and exporters/supermarkets, shows that support from guanxi networks and integration of buyer-seller relationships significantly contribute to market performance (especially with downstream partners). The effects of guanxi networks differ between primary producers, processors and exporters/supermarkets, and across marketing channels. Vegetable farmers and their buyers show an idiosyncratic way to rely on their guanxi networks in doing business. Furthermore, vegetable farmers and their buyers follow different approaches to achieve market performance. Interpersonal trust and compliance with delivery requirements are important factors for all parties in supply chains to achieve superior performance. Particularly, in relationships with downstream partners, the sellers tend to rely on their guanxi networks when conducting transactions. In relationships with upstream partners, guanxi networks and contractual governance are less often used. This study shows that the combination of formal (contract) and informal ( guanxi ) governance mechanisms seems to be the best way to improve chain performance in vegetable supply chains inChina. Policy should be directed to improve farmers' capacity to participate in modern high-value markets as well as to enhance the prospects forChina's vegetables in the world.
Comments
There are no comments yet. You can post the first one!
Post a comment
 
Please log in to use this service. Login as Wageningen University & Research user or guest user in upper right hand corner of this page.