Research Article

The Moderating Effect of Guanxi on the Dynamic Capacity and Competitive Advantage of Chinese International Contractors

Table 2

Measurement of variables.

ItemCronbach’s αKMO

Dependent variable
Competitive advantage(i) Compared with projects of the same type, the profit of this project margins higher0.5070.577
(ii) Compared with projects of the same type, this project meets with more technical difficulties
(iii) Compared with projects of the same type, this project wins higher social appraisal

Independent variables
Environment perception ability(i) The company can grasp the newest information of competitors0.7230.781
(ii) The company spends a lot of efforts and time in gathering biding information
(iii) The company can detect and grasp industry trends timely
(iv) The company is ignorant about the development of new technology in international market (inverse problem)
(v) The company can detect and seize market opportunity properly

Learning ability(i) The company encourages employees to acquire knowledge through various means0.6890.739
(ii) The company does not encourage sharing knowledge among employees (inverse problem)
(iii) The company can apply new knowledge to work quickly and effectively
(iv) The company cannot provide innovative services to meet the needs of owners (inverse problem)
(v) The company has taken a reform in its management

Integration and coordination(i) Each department of the company has agreement on the company’s strategic goal0.8640.852
(ii) Each department of the company cooperates frequently
(iii) The company often makes strategic alliance with other companies
(iv) The company can adapt its development to changes in international environment
(v) The company changes its strategy slower than its competitors (inverse problem)
(vi) The company can adjust its role accurately according to the environmental change in international project market

Business guanxi(i) The company has a bad relationship with owners (inverse problem)0.8310.839
(ii) The company can communicate well with owners
(iii) The company builds a good relationship with supervisors
(vi) The company can communicate well with supervisors
(v) The company has a good relationship with suppliers
(vi) The company does not communicate well with suppliers

Political guanxi(i) The company maintains a good relationship with the host country0.7530.688
(ii) The company can obtain the information in relation to the project timely
(iii) The company does not receive financial support or preferential policies from the government of the host country (inverse problem)
(iv) The staffs of the company have a good interpersonal relationship in their personal life with government officers in the host country

; ; (two-tailed).