A conceptual framework proposing the impact of the Guanxi with trust and information sharing on business performance

Abstract

                In response to intensifying competition and escalating customer expectations, a majority of entrepreneurs apt to draw a special attention on social relation to gain a competitive advantage beyond rival. Relationship is one of the most essential stage for business performance that regarded as a mutually oriented interaction in between two reciprocally committed persons. In term of relationship in Asian context, many firms in China use interpersonal relationship (Guanxi) to reduce unpredictable or risks in business environment and increase business performance. Additionally, trust as well as an information sharing has been indicated as the elementary structure of Guanxi. Accordingly, the paper aims to propose a conceptual framework among the factors of Guanxi, trust, information sharing and business performance in order to providing the valuable insights in incorporating Guanxi that allows firm to gain a higher trust and to share information efficiency which lead to gain higher business performance.