Relational resources for emerging markets’ non-technological innovation: insights from China and Taiwan

Abstract

Purpose This paper aims to highlight the importance of relational resources (trust and relationship effectiveness). The authors investigate how the Chinese guanxi is utilized to create and develop service exploitation and exploration activities for adopting non-technological innovations. Design/methodology/approach This study surveyed 252 Chinese and Taiwanese firms. The results were analyzed through structural equation model. Findings Relational antecedents of collaborative communication and constructive conflict positively relate to trust, as well as to relationship effectiveness. Constructive conflict positively relates to exploration and exploitation. Relationship effectiveness and trust mediate two relational antecedents to exploitation. Relationship effectiveness crucially mediates two relational antecedents to exploration. Research limitations/implications Dyadic data would be more desirable to study firm interactions. Practical implications Chinese society perceives conflict as being detrimental to relationships. Constructive conflict enhances inter-firm trust and relationship effectiveness. Relationship effectiveness, which motivates suppliers to mobilize their guanxi network, mediates the supplier–customer interaction in broadening relationships to produce new services, as well as reinforcing networks to strengthen existing ventures. Originality/value This study contributes to a relatively under-explored relationship effectiveness area. Chinese suppliers capitalize their guanxi networks to achieve competitive advantages in non-technological innovation.

How to improve new product performance through customer relationship management and product development management: evidence from China

“…Prior studies have explored various strategic issues in emerging market contexts, including the effect of branding on business relationship development (Koporcic and Ivanovagongne, 2020), the impact of different strategic orientations on firm performance (Jiang et al , 2019; Yao et al , 2019) and the importance of relationship networks for firms (Chung, 2019; Dadzie et al , 2017; Mandjak et al , 2019). A few recent studies have also addressed NPD in emerging economies (Fletcherchen et al , 2017). Based on these studies, other research has focused on the external contexts influencing these effects such as institutional and market environments (Liu et al , 2019; Wang et al , 2019; Wu et al , 2019).…”

Does Traditional Guanxi Still Matter in Social Commerce: An Empirical Study in Taiwan

“…Briefly speaking, guanxi implies personal connections and mutual obligations between parties, and it operates on personal, familial, social, business and political levels. Guanxi can be employed as a governance mechanism [17], social capital [18] and effective conduits for entrepreneurial success in the Taiwanese business context [19,20]. Over the last three decades, guanxi-related research has become more widespread, and many facets of guanxi and their impacts have been studied [21,22].…”

Do social capital and relationship quality matter to the key account management effectiveness?

“…Given the relational nature of KAM (Ojasalo, 2002), it is crucial to gain an awareness of relational aspects that can contribute to KAM effectiveness (Sengupta et al, 1997). Nevertheless, surprisingly, except for very few efforts (Ivens and Pardo, 2007;Sharma, 2006;Richards and Jones, 2009;Friend and Johnson, 2014), a little attention has been directed by previous research to the relational aspects of KAM (Sengupta et al, 1997;Gounaris and Tzempelikos, 2012;Al-Hussan et al, 2014;Fletcher-Chen et al, 2017). The lack of research on relational elements seriously limits our understanding of KAM approaches (Davies and Ryals, 2009).…”