The differences and the influential relationship between LMX and Guanxi: A comparative study between China and Vietnam.

Abstract

LMX and guanxi are leader-subordinates' behaviours that have received attention from scholars for the past decades. However, the existing studies have yet to establish how these behaviours develop or compare China and Vietnam in terms of LMX and guanxi. Therefore, the purpose of this study is to compare China and Vietnam and provide empirical evidence that shows that LMX and guanxi develop together. We surveyed 158 and 454 respondents from China and Vietnam, respectively. We analysed our data using Pearson Correlation, Regression, and Sobel tests. From our findings, China rated higher on guanxi dimensions except for affective attachment, but Vietnam rated higher on LMX. We also found that LMX has a significant differential influence on guanxi, supporting the arguments that LMX is the foundation upon which guanxi thrives. We also found that the position of subordinates mediated the association between guanxi and LMX. Findings, recommendations, and managerial implications are discussed.