Guanxi and operational performance: the mediating role of supply chain integration

Purpose - The purpose of this paper is to extend prior supply chain research by empirically exploring the relationship among guanxi, supply chain integration (SCI), and operational performance. More specifically, this study investigates the mediating role of SCI. Design/methodology/approach - Ordinary least square regression is used to analyze survey data collected from 126 automobile manufacturers in China. Findings - The results reveal a significant positive relationship between guanxi and SCI, and that SCI is significantly and positively related to operational performance. The authors' findings further suggest that guanxi indirectly affects operational performance through SCI. Practical implications - The empirical findings imply that it is vital for managers to recognize the important mediating role of dynamic SCI capabilities. Originality/value - As a fundamental Chinese cultural norm, guanxi can be critical in a supply chain context. Although previous research has identified the importance of guanxi and SCI in improving firm performance, far less attention was given to the study of the mediating effect of SCI on the guanxi-performance relationship. This study thus fulfills the research gap by providing an initial empirical examination of the mediating role of SCI in China's automotive industry.