EAN: 9783384211736

GLOBAL LOGISTICS THE CONNECTION EFFECT - JAMIE ...

China's economic rise is partly fueled by its strategic use of outsourcing combined with the
unique concept of guanxi. Outsourcing allows China to leverage lower production costs abroad 
while guanxi  a network of relationships built on reciprocity and trust  fosters smooth
collaboration with foreign companies and suppliers.Guanxi acts as a social lubricant 
facilitating communication  resolving issues  and ensuring reliable service beyond formal
contracts. This relational approach complements outsourcing by building trust and commitment 
leading to efficient production and a competitive edge.For instance  a Chinese company
outsourcing manufacturing might develop guanxi with the factory owner. This could involve
social gatherings  favors exchanged  and a focus on long-term benefits. This fosters a sense of
obligation and ensures the factory prioritizes quality and timely delivery.However  it's
important to note that guanxi can be a double-edged sword. Overreliance can lead to a lack of
transparency and hinder competition. As China's economy matures  the role of guanxi might
evolve  but its influence in outsourcing China's success story remains undeniable

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