How much does interpersonalguanximatter to business performance? The mediating role of relationship learning in an emerging market context

Purpose - By adopting learning theory and aguanxiperspective, this study aims to investigate the effects of interpersonalguanxi(interpersonal networks or connections) and relationship learning on companies’ business performance when operating in a large emerging market. Design/methodology/approach - Using a sample of 294 sales managers and salespeople in the Chinese hotel sector, the authors empirically test the authors' arguments through a structural equation modeling (SEM) approach. Findings - The authors' findings indicate that strong interpersonalguanxitends to generate more positive business performance. Furthermore, the authors find that relationship learning plays a mediating role in the association between interpersonalguanxiand hotel companies’ business performance in a Chinese context. Finally, the authors empirically explore the moderating effect of inter-firm dependence on the contribution of interpersonalguanxito relationship learning. Findings demonstrate that this effect varies significantly based on inter-firm dependence, with interpersonalguanxiexhibiting a greater positive impact if such dependence is high. Originality/value - This study enriches our understanding of interpersonalguanxiand of how companies can enhance the companies' business performance in an emerging market context.