How Guanxi Influences Word of Mouth Intentions

Abstract

This research investigates key determinants of success for executive search consultants from the perspective of job candidates. Findings from 245 respondents support the hypotheses that word of mouth intentions are driven by satisfaction, trust, and guanxi, satisfaction and trust are partial mediators. The findings successfully demonstrate the association between guanxi and relational dimensions, and indicate that the service attributes identified in the research are appropriate for evaluating the performance of executive search services as perceived by job candidates. This research contributes to the body of knowledge related to human resources management and customer relationship management. Keywords: Executive search, Headhunting, Human resources management, Hong Kong, Relationship marketing, Trust, Satisfaction, Guanxi, Word of mouth 1. Introduction Most companies select and recruit staff of the right calibre through traditional in-house human resources management (HRM) function (Fish and Macklin, 2004). However, companies using the traditional approach often find themselves flooded with large number of resumes, which puts considerable pressure on HRM administrators and causes delay in the recruitment process (Hilversum, 1999). Outsourcing HRM, which means having a third-party furnishes the administration of a HRM activity that would normally be performed in-house can provide companies with a business edge because they do not have to spend resources on processes that do not contribute to the bottom line (Laabs, 1993). Executive search is the practice of a recruitment and selection function being outsourced by recruiting firms to executive search consultants (ESCs). An executive search process involves three parties, namely, ESCs, recruiting companies and potential job candidates. A review of the literature related to the executive search industry revealed that previous work in this area focused on either executive search firms (ESFs) or recruiting companies, leaving out the potential candidates in the three-party relationship. People relationships are an important success factor in the executive search industry. As an agent, ESCs are required to match and meet the service needs of the other two parties while maintaining a good relationship with them throughout. Knowing client or user expectations and having a good understanding of how relationship marketing (RM) variables of satisfaction, trust and word of mouth intentions interact and influence one another in the search process are the first steps to business success. However, there appears to be no research that has sought to identify the attributes that job candidates desire of professional recruitment agencies, nor has there been any study on the interactive relationships among RM variables in Hong Kong's executive search industry. This research fills these gaps by studying the RM of Hong Kong ESCs as perceived by potential candidates. All previous related studies were done in the West but there are substantial differences between Chinese and Wes...

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