The influence of personal relationship as an intermediate on Thai business performance: Thai shippers’ view point

Abstract

Relationship is a fashionable topic which has been gaining attention from many academics and practitioners. The Chinese concept of Guanxi broadly defined as interpersonal relationship in Chinese society refers to networks of informal, interpersonal connection and reciprocal favor. This study attempts to empirically investigate what the perspective of Thai shipper toward Guanxi as a supportive factor of Logistics performance indicator of cost, time and reliability dimension on business performance is. To do so, a statistical methodology that uses various types of models to measure relationships between variable and latent constructs to determine the extent to which theoretical model accepted by the sample data is applied. All in all, the results revealed that the indirect impact of Logistics performance indicator of cost, time and reliability through Guanxi was found to have a stronger influence than its direct impact on business performance. In contrast, Guanxi alone has no direct impact on business performance. Furthermore, this result also can be used as a guideline in making strategic decisions for Asian businesses and provide better understanding of Guanxi in emerging economies in Thailand. It is expected that this study will be useful for practitioners and academics in applying Guanxi with regard to business performance in Thailand.