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Building global logistics competence with Chinese OEM suppliers

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  • Li, Po-Chien
  • Lin, Bou-Wen

Abstract

In today's global economy, Chinese manufacturer networks serve as an important manufacturing base for many goods. Leading companies in those industries inevitably cooperate with Chinese manufacturers to build their global logistics capability to serve increasingly demanding customers worldwide. Many scholars have noted that guanxi (connections) relationships are a key practice of doing business with the Chinese. This paper presents a theoretical framework and empirical evidence on how to enhance global logistics competence by leveraging guanxi relationships with Chinese suppliers. Relationship development or network building between organizations is critical for corporate success in all parts of the world, not just in Chinese society. Results suggest that resource integration, manufacturing flexibility, and IT infrastructure capacities are positively associated with global logistics competence. The impacts of information sharing and asset specificity on global logistics competence are not significant. It is interesting that we found that guanxi serves as a moderating influence and it interacts with information sharing, resource integration, and manufacturing flexibility. Managerial implications are also discussed.

Suggested Citation

  • Li, Po-Chien & Lin, Bou-Wen, 2006. "Building global logistics competence with Chinese OEM suppliers," Technology in Society, Elsevier, vol. 28(3), pages 333-348.
    • Handle: RePEc:eee:teinso:v:28:y:2006:i:3:p:333-348
    DOI: 10.1016/j.techsoc.2006.06.003
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    References listed on IDEAS

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    Cited by:

    1. Shahid Yusuf & Kaoru Nabeshima, 2009. "Growth through Innovation : An Industrial Strategy for Shanghai," World Bank Publications - Reports 18613, The World Bank Group.
    2. Habib Affes & Fatma Ayadi, 2014. "The Impact of New Management Accounting Practices on Strategic Buyer–Supplier Relationship within the Supply Chain: An Empirical Analysis within the Tunisian Context," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 185-200, April.
    3. Habib Affes & Fatma Ayadi, 2014. "The Impact of Contextual Factors on Improving the Relational Intangible Capital Related to the Supply Chain: An Empirical Analysis within the Tunisian Context," International Journal of Academic Research in Accounting, Finance and Management Sciences, Human Resource Management Academic Research Society, International Journal of Academic Research in Accounting, Finance and Management Sciences, vol. 4(2), pages 201-217, April.
    4. Rana Tadvji & Azhdar Karami, 2014. "The relationship between international networking and firm performance in British SMEs," Working Papers 14002, Bangor Business School, Prifysgol Bangor University (Cymru / Wales).
    5. Veslav Kuranovič & Edgar Sokolovskij & Darius Bazaras & Aldona Jarašūnienė & Kristina Čižiūnienė, 2023. "Estimating the Intensity of Cargo Flows in Warehouses by Applying Guanxi Principles," Sustainability, MDPI, vol. 15(23), pages 1-22, November.

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