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The Effect of Guanxi on Relationship Performance between Korean Apparel Firms and Chinese Partners  

Song Yun-Ah (Dept. of Business Administration, Yonsei University)
Ko Eun-Ju (Dept. of Clothing & Textiles, Yonsei University)
Publication Information
Journal of the Korean Society of Clothing and Textiles / v.30, no.4, 2006 , pp. 519-530 More about this Journal
Abstract
The purpose of this study was to investigate whether management strategic types and entry strategy moderate the influence of Guanxi on the relationship performance between Korean apparel firms & Chinese partners. For these purposes, three hypotheses were developed and data was collected from 85 Korean apparel firms which have a business relationship with Chinese partners. Data was analyzed with SPSS methods such as frequency, factor analysis, multiple-regression, and hierarchical-regression analysis. The results were as follows: First, 'Prior to Guanxi' and 'Execution of Guanxi', which were sub-factors of Guanxi, influence positively on the relationship performance. And also the influence of 'Prior to Guanxi' was higher than 'Execution of Guanxi' on the relationship performance. Second, the influence of the 'Prior to Guanxi' on the relationship performance was stronger when Defender strategic type was used rather than other types. Third, the influence of the 'Prior to Guanxi' on the relationship performance was stronger when the entry scope of 'Both production & distribution in China' and the entry mode of 'Entry through Agent' were chosen.
Keywords
China; Guanxi; Relationship performance; Management strategic types; Entry strategy;
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