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Performance in vegetable supply chains: the role of Guanxi networks and buyer-seller relationships

Author

Listed:
  • Hualiang Lu

    (Management Studies Group, Wageningen University, Wageningen, The Netherlands)

  • Shuyi Feng

    (College of Public Administration, Nanjing Agricultural University, Nanjing, P.R. China, and Agricultural Economics and Rural Policy Group, Wageningen University, Wageningen, The Netherlands)

  • Jacques H. Trienekens

    (Management Studies Group, Wageningen University, Wageningen, The Netherlands)

  • S.W.F. (Onno) Omta

    (Management Studies Group, Wageningen University, Wageningen, The Netherlands)

Abstract

Guanxi is the lifeblood of the Chinese society. It also becomes a hot topic for achieving business success in China. The primary goal of this exploratory study is to empirically investigate the effect of guanxi networks on buyer-seller relationships and market performance for the Chinese vegetable sector. We interviewed 167 vegetable farmers (i.e., sellers) and 84 vegetable processing and exporting companies (i.e., buyers) in Jiangsu Province, P.R. China. The path analysis results reveal that guanxi networks in China directly and indirectly affect buyer-seller relationships and market performance; however, guanxi networks have different effects for vegetable sellers and buyers. Results demonstrate that vegetable sellers and buyers follow different approaches to achieve superior market performance. [EconLit citations: L100, Q130]. © 2008 Wiley Periodicals, Inc.

Suggested Citation

  • Hualiang Lu & Shuyi Feng & Jacques H. Trienekens & S.W.F. (Onno) Omta, 2008. "Performance in vegetable supply chains: the role of Guanxi networks and buyer-seller relationships," Agribusiness, John Wiley & Sons, Ltd., vol. 24(2), pages 253-274.
    • Handle: RePEc:wly:agribz:v:24:y:2008:i:2:p:253-274
    DOI: 10.1002/agr.20158
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    References listed on IDEAS

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    2. Gellynck, Xavier & Kuhne, Bianka & Weaver, Robert D., 2011. "Relationship Quality and Innovation Capacity of Chains: The Case of the Traditional Food Sector in the EU," International Journal on Food System Dynamics, International Center for Management, Communication, and Research, vol. 2(1), pages 1-22, September.
    3. Martins, Franco Müller & Trienekens, Jacques & Omta, Onno, 2021. "Impact of buyers' support on farmer performance and investments in the Brazilian pork supply chain," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 25(1), July.
    4. Lin Li & Hongdong Guo & Jos Bijman & Nico Heerink, 2018. "The influence of uncertainty on the choice of business relationships: The case of vegetable farmers in China," Agribusiness, John Wiley & Sons, Ltd., vol. 34(3), pages 597-615, June.
    5. Hualiang Lu & Shuyi Feng & Jacques H. Trienekens & S.W.F. Omta, 2012. "Network strength, transaction‐specific investments, inter‐personal trust, and relationship satisfaction in Chinese agri‐food SMEs," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 4(3), pages 363-378, August.
    6. Murray, Janet Y. & Fu, Frank Q., 2016. "Strategic guanxi orientation: How to manage distribution channels in China?," Journal of International Management, Elsevier, vol. 22(1), pages 1-16.

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