Examines the antecedents and consequences of close business relationships (guanxi ) in China. We hypothesize that decision‐making uncertainty and perceived similarity positively affect guanxi , whereas opportunism negatively affects guanxi . We also hypothesize that guanxi positively affects business performance, mediated by relationship quality and interdependence. An empirical study of Hong Kong and mainland China business relationships generally supports the model. The managerial implications are discussed.
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Lee et al. (2001) studied this question.
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