Effect of Guanxi Orientation on Employee's Satisfaction: An Empirical Research in China

Extant literature focus on the effect of relationship exchange on employee satisfaction, Few research on Guanxi orientation- a special variable in the context of Chinese culture. This article: (1) through literature review and in-depth interviews with each of selected participants identified dimensions of superior-subordinate relationship quality: relationship exchange and Guanxi orientation. (2) Through pre-tests reviewed the reliability and validity of the measure scales and modify the questionnaire. (3) Collected formal data from random 86 drugstore managers and their subordinates in Tianjin pharmaceutical retail chains, and used SPSS to analyze and assess the data. Four hypothesized relationships were empirically verified, namely, Culture distance showed a positive relationship with less relationship exchange and more Guanxi-orientation (H1, H2); Both relationship exchange and Guanxi orientation demonstrated a positive relationship with employee satisfaction (H4, H5). The research suggest that both local and foreign managers should understand Guanxi-orientated culture to fit employee's satisfaction in order to improve superior-subordinate relationship management effectiveness.