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Supply Relational Risk: What Role Does Guanxi Play?
Author(s) -
Jia Fu,
Zsidisin George A.
Publication year - 2014
Publication title -
journal of business logistics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.611
H-Index - 79
eISSN - 2158-1592
pISSN - 0735-3766
DOI - 10.1111/jbl.12050
Subject(s) - supply chain , business , circumstantial evidence , risk management , supply chain risk management , supply chain management , perspective (graphical) , industrial organization , guanxi , strategic sourcing , marketing , service management , china , finance , strategic planning , political science , artificial intelligence , computer science , law , strategic financial management
The topics of supply chain risk and global sourcing have garnered significant attention in recent years. Although there is ample circumstantial evidence of global sourcing risk, especially from the western‐firm perspective of sourcing from C hina, few published studies have investigated the root causes of this risk. In this paper, we argue that much of the risk associated with sourcing from C hina stems from the differences associated with institutional norms and philosophical orientation between western and C hinese thought and culture. Based on an in‐depth literature review and case analysis, we compare western forms of supply chain relationship management with G uanxi, the C hinese form of relationship management and propose a framework of how western firms are exposed to supply relational risk when sourcing from C hinese suppliers. The framework proposed in this article sheds light for supply chain managers with regard to the potential pitfalls facing firms when working with C hinese suppliers, and provides the groundwork for future research regarding supply chain practices and G uanxi networks.