Is Guanxi (relationship) a bridge to knowledge transfer?

Guanxi is the lifeblood of Chinese business communities, and frequently acts as a lubricant of business activities. In this paper we explore the role of this special relationship in knowledge management by examining the relationship between inter-firm knowledge transfer and Guanxi. Three components operationalize Guanxi: trust, relationship commitment, and communication. Using 215 Chinese enterprises located in four southern cities in China as the sample, data is analyzed using regression analysis with interaction terms. Our results show that trust and communication are the two main channels of knowledge transfer. However, the two elements both have a negative moderating effect upon the opposite channel of knowledge transfer. Several important managerial and theoretical implications are proposed.