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The 'guanxi' development in the realm of supply chain management: the case of Taiwanese company in China

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  • Ya Ling Tsai
  • Tzong-Ru Lee

Abstract

This research addresses questions related to the development of guanxi between Taiwanese buyer companies and their Taiwanese and Chinese supplier companies in China. This research's theory development is suited to case study, and theory development as part of the design phase is essential, whether the ensuing case studies' purpose is to develop or test theory. That is the strategy for case study; to discover the in-depth information. This case company select more Chinese suppliers than Taiwanese suppliers and sign the contract with their suppliers in order to identify the risk sharing. The company thinks powerful affect the buyer and supplier relationship development. The main point is the company has devoted a lot of time to understanding the Chinese culture and building up long term relationships with their suppliers. The presentation of these findings is expected to be of benefit to firms who wish to invest or do business in China.

Suggested Citation

  • Ya Ling Tsai & Tzong-Ru Lee, 2011. "The 'guanxi' development in the realm of supply chain management: the case of Taiwanese company in China," International Journal of Logistics Economics and Globalisation, Inderscience Enterprises Ltd, vol. 3(1), pages 56-69.
    • Handle: RePEc:ids:injleg:v:3:y:2011:i:1:p:56-69
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