AN EXPLORATORY STUDY TO INVESTIGATE GUANXI-BASED STRATEGY AS A SOURCE OF ENDURING COMPETITIVE ADVANTAGE FOR BUSINESS OPERATIONS IN CHINA.

Abstract

This research study primarily examines the relationship between Guanxi-based strategy and competitive advantage within the context of Chinese enterprises' operations. A firm is said to be operationally stable if its operations stay the same, dependable, and effective even when outside or within factors affect them. In order to do well in the Chinese business world, which is known for having complicated rules and unstable markets, the most crucial thing to think about is operational stability. The researchers used a quantitative methodology to comprehend the relationships between organisations using Guanxi-based strategy experiencing operational stability and its influence on competitive advantage. The findings show that operational stability gives a firm a competitive edge by making the organisation more efficient, lowering the risks that come with operations, and making sure that services are always supplied for the right reasons. A business that runs smoothly is better equipped to respond to changes in the market, keep its customers happy, and remain successful over a longer period of time. This study shows that operational stability is more of a strategic competency than an operational statistic. This means that it directly affects a company's ability to compete in its industry while using Guanxi-based strategy. In China's business climate, which is based on relationships and changes quickly, it is very important to have reliable procedures and good coordination in order to build a long-term competitive edge. The research found that excellent coordination is needed to get this kind of advantage. Also, it gives managers ideas they may apply to make the activities that happen across the overall company work better following Guanxi-based strategies in modern times.