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1
Guo, Chun, and Jane K. Miller. "Guanxi Dynamics and Entrepreneurial Firm Creation and Development in China." Management and Organization Review 6, no. 2 (2010): 267–91. http://dx.doi.org/10.1111/j.1740-8784.2010.00180.x.
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Guanxi networks are critical for achieving entrepreneurial success in China. Informed by the literatures on network-based entrepreneurship and guanxi, this study used a multiple-case method to examine the development of Chinese entrepreneurs' guanxi networks in the entrepreneurial process. Data induction based on within- and cross-case analyses of six entrepreneurial firms revealed three major findings. First, guanxi network dynamics in terms of network structure, governance mechanisms, and network content change systematically across the stages of the entrepreneurship process. Second, the usefulness of guanxi ties (such as family, business associates, or government officials) is contingent on the stage of the entrepreneurial process as well as on industrial-level factors. Third, in knowledge-intensive industries, cultivating and maintaining guanxi can be achieved through knowledge and information exchange rather than traditional gift-giving or favours. The overall conclusion is that guanxi is still of paramount importance for Chinese entrepreneurs in the midst of China's transformation from a centrally planned to a socialist market economy. We propose a stage model of guanxi network development in the entrepreneurial process and discuss implications for future research.
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Lu, Haiyan Emma, Andrew Potter, Vasco Sanchez Rodrigues, and Helen Walker. "Exploring sustainable supply chain management: a social network perspective." Supply Chain Management: An International Journal 23, no. 4 (2018): 257–77. http://dx.doi.org/10.1108/scm-11-2016-0408.
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PurposeThe implementation of sustainable supply chain management (SCM) calls for an acknowledgement of uncertainty inherent in complex environment. Confucianist society forms social networks in Confucianist society, called guanxi networks, influence economic behaviours and business practices in the workplace. The purpose of this study is to explore how these social networks influence the implementation of sustainable SCM. In doing so, this study aims to critically investigate the constructs of guanxi networks, their impact on flow of supply chain capital and how this leverages the implementation of sustainable SCM.Design/methodology/approachTwo systematic literature reviews are conducted to understand the constructs of social networks in Confucianist culture and their impacts on the flow of supply chain capitals. The reviews also analyse evidence related to the economic, social and environmental practices to reveal the current state of the literature and research gaps. Propositions and a framework are developed to support future research in this area.FindingsThe constructs of ganqing, renqing, xinren and mianzi in guanxi networks have expanded the contexts of social networks in Western literature. Guanxi networks increase the flow of supply chain capital and generate trust between players, thus enhancing capabilities to implement sustainable SCM. Guanxi networks also create the mechanism of network governance with which to increase sustainable SCM implementation under the institutional logics of sustainability.Research limitations/implicationsThe conceptual framework and justification are based on the reviews of current studies in the field. Future empirical study is encouraged to test the propositions, both in Confucianist culture and other countries with culture of social networks.Originality/valueSocial networks are socially constructed concepts. The constructs of guanxi networks revealed in this study have developed the knowledge of Western-based social network theory. Besides, arguments from a social network perspective provide an alternative answer to explain increased behavioural commitment and companies’ investment in sustainable SCM. This study helps practitioners understand the logic of this social norm and to use it to maximise their operation outputs, including sustainable SCM implementation.
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Chung, Chi-Nien. "Beyond Guanxi: Network Contingencies in Taiwanese Business Groups." Organization Studies 27, no. 4 (2005): 461–89. http://dx.doi.org/10.1177/0170840605058230.
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Business groups consisting of legally independent affiliates with institutionalized relationships with each other exist in almost every market economy. While the groups are important and pervasive, little attention has been paid to the processes by which business groups emerge and grow. Reasons for this gap include a) a deficiency of the top-down, macro perspective of many business group studies, and b) the overemphasis of Guanxi networks in the literature of business organizations in East Asia. Personal relationships ( Guanxi) are treated as the necessary and sufficient condition for the entrepreneurship and evolution of business groups. In an attempt to refine the Guanxi perspective, the author uses case studies of five major Taiwanese business groups to propose a set of contingency factors. The suggestion offered in this paper is that entrepreneurs’ attributes and contextual factors are inseparable from the functions of the Guanxi network in the entrepreneurial process. Tracing the movements of these groups over the past four decades, it appears that group diversification evolves in a path-dependent fashion as opposed to a Guanxi-driven, idiosyncratic pattern as suggested by the Guanxi perspective. The influences of Guanxi for group diversification were clear in the early stages when markets were tightly controlled and the personalistic networks became the core capabilities underlining diversification. However, as groups grew and institutions developed, the significance of political Guanxi diminished and the decision-making of diversification strategy became hinged mainly upon the resources firm accumulated overtime.
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Chang, William Li, and Peirchyi Lii. "The impact of Guanxi on Chinese managers' transactional decisions: A study of Taiwanese SMEs." Human Systems Management 24, no. 3 (2005): 215–22. http://dx.doi.org/10.3233/hsm-2005-24304.
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Guanxi is an important source of competitive advantage; managers in Chinese enterprises have especially placed enormous emphasis on it. The purpose of this study is to investigate the relationship between managers' initiative toward a Guanxi formation and their transactional decisions within the network. Findings of this study suggest that managers' initiative in setting up a Guanxi network has important impact on their perceptions toward members in the network; and in turn, the perception has an impact on their transactional decisions within the Guanxi network. More specifically, managers would employ relational mark-down and compensatory mark-up to differentiate Guanxi members from non-Guanxi members in making transactional decisions.
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Burt, Ronald S., and Katarzyna Burzynska. "Chinese Entrepreneurs, Social Networks, and Guanxi." Management and Organization Review 13, no. 2 (2017): 221–60. http://dx.doi.org/10.1017/mor.2017.6.
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ABSTRACTIntending to clear space for rigorous integrative research bridging theory and research across East and West, we highlight four conclusions from exceptional data on the networks around Chinese entrepreneurs: (1) The broker networks associated with business success in the West are also associated with success in China; (2) The trust correlates of closed networks in the West are similarly correlated in China; (3) History and trust proven in events emerge as especially important to the Chinese entrepreneurs; (4) High-quality network data on Chinese business leaders are a practical reality. We use the results to define a network perspective on guanxi ties that can be common ground for integrating results across East and West, and guide future research on the role networks play in Chinese business.
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Burt, Ronald S., and Bat Batjargal. "Comparative Network Research in China." Management and Organization Review 15, no. 1 (2019): 3–29. http://dx.doi.org/10.1017/mor.2019.8.
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ABSTRACTUsing recent substantive results on China and the West, we highlight some virtues to Mill's method of residues for comparative network research. The result is research that combines the emic-etic approaches discussed by Leung (2009) with the spirit of Whetten's (2009: 49) efforts to make ‘theory borrowing more context sensitive’. We draw on recent comparative research about the competitive advantage enjoyed by network brokers, trust facilitated by embedding a relationship in a closed network, the subset of Chinese relations that constitute guanxi, the idea of American and European guanxi, different business environments maintained by the same network mechanism, cocoon networks, small-world networks, the longer history apparent in Chinese networks, and job search via colleagues, friends, and family. We also illustrate the value of data graphs for the expository value of the method of residuals in comparative network analyses.
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Ahmed, Ishfaq, Wan Khairuzzaman Wan Ismail, and Salmiah Mohamad Amin. "Guanxi network and leader member exchange." Asia-Pacific Journal of Business Administration 6, no. 1 (2014): 64–77. http://dx.doi.org/10.1108/apjba-05-2013-0048.
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Purpose – This study investigated how leader-member relation and guanxi association create an impetus for creative work involvement (CWI) through feeling of energy (FE). The paper aims to discuss these issues. Design/methodology/approach – A total of 239 Malaysian-Chinese employees occupying various designations in 23 manufacturing organizations were questioned at two points of time. At the first instance, they responded for guanxi network (GN) and leader member exchange associations; and at the second instance, for their FE and creative involvement. Findings – Structural equation modeling analysis showed that social exchange relations (GN and leader member exchange) positively predicted employees' FE which resulted in increased level of CWI. Social implications – This study adds value to the existing literature on guanxi association and signifies that such values are not boundary restricted. Malaysian-Chinese also experience guanxi associations and its impact on their job outcomes. Originality/value – This study covers an unexplored role of GN in improving employees' level of energy and CWI; and mediation of leader-member exchange in the association of GN and energy.
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Barbalet, Jack. "Guanxi, Tie Strength, and Network Attributes." American Behavioral Scientist 59, no. 8 (2015): 1038–50. http://dx.doi.org/10.1177/0002764215580613.
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Chang, Kuang-Chi. "A Path to Understanding Guanxi in China's Transitional Economy: Variations on Network Behavior." Sociological Theory 29, no. 4 (2011): 315–39. http://dx.doi.org/10.1111/j.1467-9558.2011.01401.x.
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Current research on guanxi (Chinese social connections) suffers from conceptual confusion. This article presents a new theoretical framework for understanding guanxi in the face of China's economic and social transformations. Guanxi is viewed as a purposive network behavior that can take different “strategic” forms, such as accessing, bridging, and embedding. Pairing this conceptualization with a social-evolutionary framework, I argue that the emergence and increasing or decreasing prevalence of each form over time result from (1) a combination of factors at three analytical levels—microagency, mesonetwork, and macroinstitutional—and (2) endogenous processes of selection. By focusing on behavioral forms and their evolution, this framework is able to bridge divides in the guanxi literature, provide a foundation for comparative studies of network behavior across societies, and connect the study of guanxi with economic sociology more broadly.
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Blair, Alexander, and Andrea K. Chareunsy. "Modelling guanxi with a games network approach." Oxford Development Studies 46, no. 2 (2017): 290–303. http://dx.doi.org/10.1080/13600818.2017.1397619.
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Aaltio, Iiris, and Jiehua Huang. "The guanxi ties of managers in mainland China – a critical analysis based on gender." Gender in Management: An International Journal 33, no. 7 (2018): 577–99. http://dx.doi.org/10.1108/gm-01-2018-0006.
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Purpose Inadequate social networks are often seen as an explanation of the under-representation of women in management. Networks contain culture-specific features, as in China where the term guanxi is used, defined as a shared common identification held by two or more individuals (Jacobs, 1979). In several studies, guanxi has been found to relate positively to success at work both for the individual and the organization, but little is known about it from gender and career perspectives. Referring especially to the earlier studies by Chow and Ng (2004), the purpose of this paper is to address the meaning of guanxi networks for top women IT managers in mainland China. Design/methodology/approach The authors collected data from 21 women managers in mainland China, using a questionnaire about the composition and structure of their core guanxi networks and face-to-face interviews which allowed ample opportunity to elaborate the participants’ responses to items included in the questionnaire and their perspectives to using guanxi in general. The authors used both data in an interpretive analysis. Findings It was found that: there is a significant effect of female-to-male dyads concerning power and work-related guanxi bases, such as influence; there is a significant effect of female-to-female dyads concerning questions of private life and crisis, and women IT managers have a relatively limited guanxi base. The findings of this paper support Ibarra’s (1993) suggestion that a common strategy for women is to use and develop a functionally differentiated network. Based on findings, the authors further suggest that in building a successful managerial career, women managers in China need to reflect their gender, be gender-sensitive in building up their networks and stay incorporated at the core networks in the organization whatever gender they represent. They also suggest that because networks are dependent on culturally bound definitions (like guanxi), even the guanxi practices may vary locally in different parts of China. Research limitations/implications Women managers are important role models for younger female candidates and the possibility to close connections with them is relevant. Because networks are dependent on culturally bound definitions (like guanxi), even the guanxi practices may vary locally in different parts of China. For further studies, the authors suggest to focus on the consequences of guanxi practice limitations to women managers’ careers, especially from the perspective of private life responsibilities and the possible problematic nature of power ties between the gender(s). Originality/value Even if working life is becoming more and more global, the local and culture-based nature of networking remains. This paper contributes on the extensive research on social networking practices in China, often described in terms of guanxi, which has seldom been investigated using critical gender perspective.
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Chen, Ming-Huei, and Min Tseng. "Creative entrepreneurs' artistic creativity and entrepreneurial alertness: the guanxi network perspective." International Journal of Entrepreneurial Behavior & Research 27, no. 4 (2021): 1082–102. http://dx.doi.org/10.1108/ijebr-05-2020-0306.
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PurposeThe dichotomy of views on “arts for arts sake” and “art must meet commerce” elicits the clash about how creative entrepreneurs encounter the dilemma of fulfilling personal satisfaction and chasing entrepreneurial aspiration along the entrepreneurial process. It is argued whether or not creative entrepreneurs can integrate artistic creativity and entrepreneurial alertness to disentangle the conflict and tension between art and commerce in the guanxi embedded culture context. The complex guanxi ties of creative entrepreneurs identified as bonding ties with families, bridging ties with friends and social ties with colleagues are presumed to activate personal and social values.Design/methodology/approachThe research design consists of two stages: face-to-face interviews and empirical survey. A total of four successful local creative entrepreneurs in craft arts were interviewed and asked questions related to their source of creative inspiration, market alertness and value creation. Findings derived from interviews enrich the questionnaire development of the empirical survey. The survey was conducted to realize the social phenomenon of creative entrepreneurs' guanxi, cognitive process and satisfaction with Taiwan's creative industry context. In total, 318 creative entrepreneurs’ responses were collected and analyzed by using structural equation modeling (SEM).FindingsResults suggest that guanxi networks lead to the acquisition of various social resources that are conducive to alertness in entrepreneurial opportunities and stimulate artistic creativity, which in turn gratify creative entrepreneurs' senses of entrepreneurial satisfaction with life, work and social contribution, as well as achieve higher entrepreneurial aspiration, perceived as social recognition and meaning of work.Practical implicationsResults of this study enrich the understanding of creative entrepreneurs and their awareness of balancing opportunity alerting and artistic creativity while starting creative businesses. Diverseness and closeness of guanxi networks can fill the gap between art and market and further pave the way to winning aspiration.Originality/valueThis paper advances the existing literature on creative entrepreneurship by adopting guanxi network theory to explore entrepreneurs' cognitive process in the linkage of artistic creativity and entrepreneurial alertness and their mediating effects on perceived entrepreneurial satisfaction and aspiration.
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Qi, Xiaoying. "Social Movements in China: Augmenting Mainstream Theory with Guanxi." Sociology 51, no. 1 (2017): 111–26. http://dx.doi.org/10.1177/0038038516656993.
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An extensive literature on social movements points to the role of social networks in movement recruitment and development. It is anomalous, therefore, that treatments of Chinese social movements seldom acknowledge the importance of guanxi networks. Theories of social movements are typically constructed on the basis of US and European cases and draw upon the intellectual formations of these regions. Through an examination of social movements in contemporary China it is shown that guanxi is not only relevant to the operation of social movements but to our understanding of how social movements are formed and also how they are suppressed and undermined by the state. It will be shown that by theorising social movements in China in terms of guanxi there is scope to augment social network approaches to social movements.
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Tsai, Hsien-Tang, Tung-Ju Wu, and Shang-Pao Yeh. "A study of Chinese guanxi type in family business from the perspective of power-based and leadership behaviours." South African Journal of Economic and Management Sciences 16, no. 5 (2013): 102–14. http://dx.doi.org/10.4102/sajems.v16i5.680.
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In Chinese society, a guanxi network is based on kinship or family ties of affection. This special pattern has a historical background and is one of the important factors that have enabled many Taiwanese enterprises to continue operating through the decades. The personal links between people create a kind of social network known as guanxi, which is a unique characteristic of Chinese society. The study aims to investigate the guanxi type of managers in Taiwanese family businesses, and examines how the guanxi type may moderate the correlation between the managers’ power and the influence tactics used to handle subordinates. We surveyed 178 managers who are working in Taiwanese family business. The results of the hierarchical regression modeling showed that as managers have more position power, especially those exercising the family guanxi, they are more likely to be assertive in their treatment of their subordinates. Managers possessing the friend guanxi often play a bridging role to complement the function of those managers with the family guanxi, who may use the assertive approach too strongly. Managers of this type can provide a “lubricant effect” and keep the family business running smoothly. We recommend that family business owners should pay more attention to relationship harmony and internal communication channels in their organisations.
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Bandeira, Suzana, Arnoldo José De Hoyos Guevara, Tereza Stefani, and Janaína Rute Da Silva Dourado. "Relationship Networks and China’s Increasing Presence in Brazil – Looking at Entrepreneurship and Cooperation." Journal on Innovation and Sustainability. RISUS ISSN 2179-3565 4, no. 1 (2013): 17. http://dx.doi.org/10.24212/2179-3565.2013v4i1p17-34.
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The study of interpersonal relationship networks belongs to a long and extensive multidisciplinary academic research field. Although the subject is not a new one, there has been an increase in the interest of the role of social networks in the business world. This article discusses a kind of network very peculiar to Chinese communities’ way of life: the Guanxi. Ever more emigrating to countries of occidental culture, the Chinese bring with them their way of being and doing business to which the Guanxi is a significant cultural trait. Knowing this type of relationship increases the possibilities of success for those who intend to do business with the Chinese, both in Brazil and in China. The article encompasses a theoretical framework, exposing Chinese and Occidental theories about relationship networks, allowing a broad understanding of how Guanxi works. Interviews and the relevant analysis of their contents complement the exploratory and qualitative research.
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Zhang, Man, and Janet Hartley. "Does guanxi influence product performance and customer loyalty?" Journal of Asia Business Studies 12, no. 3 (2018): 233–52. http://dx.doi.org/10.1108/jabs-06-2016-0082.
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Purpose This paper aims to propose and test a model examining the relationship of guanxi with new product performance and customer loyalty in the context of internationalizing small- and medium-sized enterprises (SMEs) in China. Social network theory and information processing theory provide the theoretical lenses for this research. Design/methodology/approach Guanxi with suppliers, distributors and customers is measured as a second-order construct consisting of ganqing, renqing, and xinren/xinyong. Research hypotheses are tested using survey data (n = 212) gathered in Anhui and Shandong Provinces. The data are analyzed using smart partial least squares technique. Findings The findings reinforce existing studies, which show that a locally based social network can be extended to the success of early-internationalizing SMEs. Results also suggest that the relationship between guanxi and customer loyalty is stronger when technical uncertainty is low and when market uncertainty is low rather than high. Research limitations/implications The data were gathered from the point of view of the SMEs and may not accurately reflect the perspective of the foreign customer. The findings may not generalize beyond the regions surveyed. The study does not differentiate among the type of supply chain member, and the location of the supply chain member was not measured. Practical implications Although guanxi is typically viewed as being localized within a country, guanxi with suppliers, distributors and customers can provide information and resources needed for successful export products. Second, internationalizing SMEs must understand that even though guanxi has positive impact on new product performance which directly leads to customer loyalty only when uncertainty is low. Originality/value Although guanxi has been studied, there are a limited number of empirical studies of guanxi in a supply chain context and most focus on buyers’ guanxi with suppliers. The research on guanxi with customers and distributors is also limited. This research addresses this gap by focusing on guanxi with suppliers, distributors and customers.
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Shuai, Man. "Lost trust and dissolved guanxi circles: A case study of a collective resignation event at Tianyuan Tea Company." Chinese Journal of Sociology 5, no. 3 (2019): 374–406. http://dx.doi.org/10.1177/2057150x19856285.
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The mainstream explanation for employee turnover is either cause–effect factor analysis or interaction analysis. The former is effective in identifying causal relations between factors and the latter in revealing the dynamics of interpersonal relationships. Combining the benefits of both methods, this study applies guanxi circle theory to studying employee turnover. It places various turnover factors under the framework of interpersonal interactions and uses the social network structure as an analytic point from which to examine the dynamic evolution of trust within the organization. The study finds that in the case of the Tianyuan Tea Company, the collective resignation was largely caused by the collapse of trust within the guanxi circles that informally operated within the company social network centered on the management authority who had the power of hiring, firing, and promotion. Five conclusions are proposed: (a) the formal hierarchical structure of power can either coincide with or be separate from the informal guanxi circles – when the two are in accordance, resignations rarely happen, while discordance between the two is often an indicator of potential resignations; (b) organizational changes are most likely to cause guanxi circles outsiders to resign; (c) members of the inner guanxi circle in the organization do not resign because of discordant relationships with lower level managers, but rather, they get relocated with promotion; (d) the collapse of ‘bridges’ between guanxi circles can cause collective resignations; (e) those who survive organizational shakeups are members of the inner guanxi circle in the organization and the ‘bridges’ of guanxi circles. This study contributes to the research on employee turnover by introducing a new perspective of guanxi circle theory as well as drawing attention to the important function of the ‘bridge’ in coordinating between circles, and by offering theoretical understanding and practical guidance for social governance.
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Han, Ruihui. "Why Was It the Ming Dynasty that Engendered the Guanxi Motif in Fiction?" Interlitteraria 25, no. 2 (2020): 443–57. http://dx.doi.org/10.12697/il.2020.25.2.15.
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Compared to other informal social network mechanisms, guanxi is more common in China and is the most typical. Even in daily life, it is indispensable. Hence, in Chinese fiction, the guanxi motif is prevalent and important. Interestingly, before the Ming dynasty, guanxi was not a literary motif in fiction. This article suggests that three factors contributed to the rise of the guanxi motif in fiction in the Ming dynasty. The first was the boom in fiction writing, especially in the genre of realism, that occurred in this era, which expanded the scope of literary representation. The second was the degradation of public morals in the Ming dynasty, a momentous social transition that Ming fiction writers noted and portrayed. Guanxi, as a disruptive social mechanism that dismantled previous models of human connection, became a focus in their works. The third was the fact that the atmosphere of money worship promoted by guanxi, together with official corruption, facilitated widespread social inequality. Guanxi, as the crux of inequity, inspired writers to expose social turpitude. More importantly, the guanxi motif satisfied the need for plot conflict in literary works. Thus, it became a necessary motif in Ming fiction.
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Han, Ruihui. "Why Was It the Ming Dynasty that Engendered the Guanxi Motif in Fiction?" Interlitteraria 25, no. 2 (2020): 443–57. http://dx.doi.org/10.12697/il.2020.25.2.15.
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Compared to other informal social network mechanisms, guanxi is more common in China and is the most typical. Even in daily life, it is indispensable. Hence, in Chinese fiction, the guanxi motif is prevalent and important. Interestingly, before the Ming dynasty, guanxi was not a literary motif in fiction. This article suggests that three factors contributed to the rise of the guanxi motif in fiction in the Ming dynasty. The first was the boom in fiction writing, especially in the genre of realism, that occurred in this era, which expanded the scope of literary representation. The second was the degradation of public morals in the Ming dynasty, a momentous social transition that Ming fiction writers noted and portrayed. Guanxi, as a disruptive social mechanism that dismantled previous models of human connection, became a focus in their works. The third was the fact that the atmosphere of money worship promoted by guanxi, together with official corruption, facilitated widespread social inequality. Guanxi, as the crux of inequity, inspired writers to expose social turpitude. More importantly, the guanxi motif satisfied the need for plot conflict in literary works. Thus, it became a necessary motif in Ming fiction.
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Ahmed, Ishfaq, Wan Khairuzzaman Wan Ismail, Salmiah Mohamad Amin, and Muhammad Musarrat Nawaz. "A social exchange perspective of the individual guanxi network." Chinese Management Studies 7, no. 1 (2013): 127–40. http://dx.doi.org/10.1108/17506141311307640.
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Barbalet, Jack. "The structure of guanxi: Resolving problems of network assurance." Theory and Society 43, no. 1 (2013): 51–69. http://dx.doi.org/10.1007/s11186-013-9211-2.
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Karhunen, Päivi, Riitta Kosonen, Daniel J. McCarthy, and Sheila M. Puffer. "The Darker Side of Social Networks in Transforming Economies: Corrupt Exchange in Chinese Guanxi and Russian Blat/Svyazi." Management and Organization Review 14, no. 2 (2018): 395–419. http://dx.doi.org/10.1017/mor.2018.13.
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ABSTRACTThis article addresses corruption as a negative practice displaying the ‘darker side’ of social capital in Chinese guanxi and Russian blat/svyazi networks. It presents a conceptual framework integrating several research streams to establish a conceptual linkage between social network characteristics and three forms of corruption between business persons and public officials: cronyism, bribery, and extortion. We argue that the forms of corruption in a society are determined by the nature of social network ties and their underlying morality, with particularistic and general trust being key factors. Our framework depicts networks as three concentric circles representing three types of corruption resulting from their corresponding types of reciprocity: open, closed, and negative. We then apply the framework to the practice of guanxi in China and blat/svyazi in Russia. We propose that different network characteristics and different forms of corruption may help explain what we label the ‘China-Russia paradox’ of why corruption and high economic growth have co-existed in China, at least in the short term, but less so in Russia. We conclude with ethical and legal implications for doing business in those two transforming economies and offer suggestions for future research.
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Barbalet, Jack. "Guanxi as Social Exchange: Emotions, Power and Corruption." Sociology 52, no. 5 (2017): 934–49. http://dx.doi.org/10.1177/0038038517692511.
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After reviewing social exchange theory and identifying emotions as key to exchange relations the article introduces Chinese guanxi as a form of gift exchange, elsewhere treated in terms of its network attributes. The obligatory nature of exchange, noted by Mauss and extensively discussed by Blau, is explained through ‘social sentiments’ that substantiate assurance in exchange. The emotions-complexes renqing and ganqing, basic to guanxi, are outlined. Social esteem as a consequence of participation in exchange distinguishes the latter from bribery, in which coercion predominates. The article advances sociological understanding in these and associated ways by regarding exchange and guanxi as arenas of emotion practices.
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Fletcher-Chen, Chavi C. Y., Faten Baddar AL-Husan, and Fawaz Baddar ALHussan. "Relational resources for emerging markets’ non-technological innovation: insights from China and Taiwan." Journal of Business & Industrial Marketing 32, no. 6 (2017): 876–88. http://dx.doi.org/10.1108/jbim-05-2015-0092.
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Purpose This paper aims to highlight the importance of relational resources (trust and relationship effectiveness). The authors investigate how the Chinese guanxi is utilized to create and develop service exploitation and exploration activities for adopting non-technological innovations. Design/methodology/approach This study surveyed 252 Chinese and Taiwanese firms. The results were analyzed through structural equation model. Findings Relational antecedents of collaborative communication and constructive conflict positively relate to trust, as well as to relationship effectiveness. Constructive conflict positively relates to exploration and exploitation. Relationship effectiveness and trust mediate two relational antecedents to exploitation. Relationship effectiveness crucially mediates two relational antecedents to exploration. Research limitations/implications Dyadic data would be more desirable to study firm interactions. Practical implications Chinese society perceives conflict as being detrimental to relationships. Constructive conflict enhances inter-firm trust and relationship effectiveness. Relationship effectiveness, which motivates suppliers to mobilize their guanxi network, mediates the supplier–customer interaction in broadening relationships to produce new services, as well as reinforcing networks to strengthen existing ventures. Originality/value This study contributes to a relatively under-explored relationship effectiveness area. Chinese suppliers capitalize their guanxi networks to achieve competitive advantages in non-technological innovation.
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Wang, Dedong, Kaili Li, and Shaoze Fang. "ANALYZING THE FACTORS INFLUENCING TRUST IN A CONSTRUCTION PROJECT: EVIDENCE FROM A SINO-GERMAN ECO-PARK IN CHINA." Journal of Civil Engineering and Management 24, no. 4 (2018): 331–43. http://dx.doi.org/10.3846/jcem.2018.3069.
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Trust is regarded as a critical feature and a central mechanism in business transactions, especially in the Chinese guanxi network. In this context, the major objective of this research is to explore the key factors influencing trust in different stages of a construction project from the perspectives of owners and consultants involved in a Sino-German eco-park in China. The analytic network process (ANP) was employed to assess which factors are most closely related to trust and to establish four models to meet the objective of this study. According to the ANP results, trust is strongly influenced by factors that are associated with the mutual interests between owners and consultants. In addition, there are certain differences in the priority of the factors influencing initial trust between owners and consultants, but these gaps gradually decrease over time. The weight of guanxi also decreases over time, and the owners’ and consultants’ guanxi transforms from out-group to in-group focused.
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Chang, Wen-Chin. "Guanxi and Regulation in Networks: The Yunnanese Jade Trade between Burma and Thailand, 1962–88." Journal of Southeast Asian Studies 35, no. 3 (2004): 479–501. http://dx.doi.org/10.1017/s0022463404000244.
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The article investigates the operation of the jade trading networks from Burma to Thailand during the period of the Burmese socialist regime. The trade, a significant ethnic enterprise undertaken by Yunnanese migrants, has relied on transnational networks that deal with different political and economic systems beyond the jurisdiction of the state. The network approach is used to analyse the intertwining of guanxi formation and regulatory observance.
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Luo, Yadong, Ying Huang, and Stephanie Lu Wang. "Guanxi and Organizational Performance: A Meta-Analysis." Management and Organization Review 8, no. 1 (2012): 139–72. http://dx.doi.org/10.1111/j.1740-8784.2011.00273.x.
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Guanxi, a social network tie drawing on connections in business relations, has been identified as a powerful strategic tool helping organizations maintain competitive advantages and achieve superior performance. However, prior empirical studies on die gM/m-performance link provide indefinite conclusions. The purpose of this study is to systematically review and quandfy the guanxi-performance link in a meta-analytic framework by decomposing guanxi into business ties (i.e., guanxi with business partners) and government ties (i.e., guanxi with government authorities) and organizational performance into economic performance and operational performance. Based on effect sizes from fifty-three studies encompassing 20,212 organizations, we estimate that the overall effect size of the guanxi-pertormance relationship is positive and significant, thus endorsing the argument that guanxi does enhance organizational performance. Specifically, our meta-analysis results demonstrate that both business and government ties lead to both economic and operational performance. However, business ties have a bigger impact on operational performance, whereas government ties exert larger effects on economic performance. Further meta-analytic regression results suggest that ownership (state-owned vs. non-state-owned) and location (Mainland vs. overseas China) explain some of the variations of the guanxi-performance link. Both business and government ties are more important to organizations in Mainland China than to those in overseas China. Government ties are more important to state-owned than to non-state-owned organizations. Lasdy, while business ties remain a valuable strategic tool in China, the importance of government ties is time-variant and has been declining with the development of the institutional environment in China.
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Yi, Jin, Chris Ryan, and Degang Wang. "China’s Village Tourism Committees: A Social Network Analysis." Journal of Travel Research 60, no. 1 (2020): 117–32. http://dx.doi.org/10.1177/0047287519892324.
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Xi Jinping has set the goal of eliminating rural poverty in China by 2020. One critical component if this target is to be achieved is the effectiveness of village tourist committees, and the article reports findings from a study of social networks and their operation in five Shandong villages. Using both thematic and social network analysis, the networks are shown to be diffuse and dependent on familial circles and wider guanxi possessed by key actors. However, the findings indicate how these networks are being extended beyond the village into the higher echelons of provincial administration while also illustrating the importance of socio-biological ties as defined by Hamilton, Fennell, and others.
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Lin, Nan. "Advancing Network Analysis of Chinese Businesses: Commentary on Burt and Burzynska." Management and Organization Review 13, no. 2 (2017): 269–74. http://dx.doi.org/10.1017/mor.2017.19.
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Burt and Burzynska (2017) have produced a very significant and innovative study on social networks among Chinese entrepreneurs. As the authors claim, this may be an exceptional dataset with certain unique features. It is a comparative study between Chinese and American entrepreneurs. While the American data is rather limited in scope, it does provide valuable theoretical and measurement information by which to examine possible similarities and differences of the private enterprises and entrepreneurs in these two societies. Second, it examines two general network principles, namely the association between brokerage and success, and between closure and trust. In general, the study affirms comparable results in the two societies, though somewhat different measurements require cautious interpretation. Third, the authors explore two innovative notions worthy of our attention. They employ events as the frames on which social ties (contacts) were generated (Table A1). This turns out to be very fruitful. For example, the founding event provided interesting social network information, more so than current and other events. The event-name generators reveal the time-related dynamics of network stability and changes, and alert us to possible underestimation of network effects if only the current event or the present time is examined. Finally, the authors attempt possible network measures for the notion of guanxi. This exploration sets the initial stage for more rigorous measures of guanxi in future studies of entrepreneurs in China and other societies.
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Rose, Philip. "Guanxi social-network ties: Predicting graduate employment with internship host-organisations in China." Journal of Teaching and Learning for Graduate Employability 11, no. 1 (2020): 81–92. http://dx.doi.org/10.21153/jtlge2020vol11no1art927.
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Globally internships are utilized to enhance the university learning experience and improve graduate employment. The expanding application of internships in the graduate recruitment and selection process has traditionally received less attention in the literature, and whilst this trend has crossed national borders, the transferability of this practice has largely been assumed rather than empirically substantiated. Hence, this study investigates how a culturally specific form of social-networking, namely guanxi, impacts on employment outcomes from internships, for graduates within the Chinese context. This study involved the collection of longitudinal data at two time intervals from intern-supervisor dyads (N=303), in order to determine the role of guanxi in predicting the conversion of an intern into an employee with their internship host-organisation. These findings highlight the role of cultural context in shaping and potentially undermining desired graduate employment outcomes from Work-Integrated Learning initiatives such as internships.
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Lui, Tai-Lok. "Trust and Chinese Business Behaviour." Competition & Change 3, no. 3 (1998): 335–57. http://dx.doi.org/10.1177/102452949800300303.
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This paper is about trust and economic exchange. It cuts into the current debate about trust, economic organization, and inter-firm cooperation on two counts. First, in reviewing the growing literature on trust. I shall address specifically the issues brought up by Williamson in his critique of the concept of ‘calculative trust’. I shall argue that the rational-instrumentalist conception of trust will, at best, give us a static and functionalist analysis of the effects of trust in economic transaction. To get out of the current impasse, we must look at trust as an element of the repertoire of economic action. Second, drawing upon empirical research on Chinese business behaviour. I shall show that the crux of the matter in establishing guanxi networks is really about drawing the boundary of personal network and framing an economic-relations in the moral tones of trust. But once the social relation is so defined, the framework of guanxi and trust are consequential in determining the proper behaviour for conducting business. Through an examination of the social processes of classifying business relations in terms of network and trust, it is shown how we can study trust and networking in economic exchange without falling back into the impasse of a functionalist analysis of trust in economic transaction.
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Burt, Ronald S., Yanjie Bian, and Sonja Opper. "More or less guanxi: Trust is 60% network context, 10% individual difference." Social Networks 54 (July 2018): 12–25. http://dx.doi.org/10.1016/j.socnet.2017.12.001.
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Shao, Zhen, and Zhengyuan Pan. "Building Guanxi network in the mobile social platform: A social capital perspective." International Journal of Information Management 44 (February 2019): 109–20. http://dx.doi.org/10.1016/j.ijinfomgt.2018.10.002.
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Chang, Christina Ling-hsing, and Sheng Wu. "Using Online Social Networks to Globalize and Popularize Product Brands in Different Cultural Areas." Journal of Global Information Management 29, no. 6 (2021): 1–30. http://dx.doi.org/10.4018/jgim.20211101.oa38.
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The purpose of this paper is to investigate the influential factors of online social network advertising in three different cultural areas, being China, India, and the US. This study uses the Social Capital Theory (SCT), and Guanxi Theory, as two types of relation theories; then collects data from the virtual community (or online social network, VC) members of three different areas, a total of 730 valid surveys were completed for model testing. The findings show that: (1) building the relationship dimension of the SCT (trust, identification, and the norm of reciprocity) for the VC members in China and the US societies is more useful than the India society, to spread the brands through the VC; (2) good guanxi for the VC members in China's society is more useful than the Indian and the US societies to spread brands through VC. The result demonstrates that culture differentiation should be consider when researchers investigate the impact of VC advertising contact and attention, attitude towards VC advertising, and purchase intention in VC context.
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Ahmed, Ishfaq, Wan Khairuzzaman Wan Ismail, and Salmiah Mohamad Amin. "Individual guanxi network and social exchange relations: an evidence from Malaysian hotel industry." International Journal of Chinese Culture and Management 3, no. 3 (2013): 254. http://dx.doi.org/10.1504/ijccm.2013.055439.
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Zhang, Yanli, Jeffrey Hsu, Ruben Xing, and Wencang Zhou. "Conflict of Interest." International Journal of Knowledge-Based Organizations 5, no. 2 (2015): 1–18. http://dx.doi.org/10.4018/ijkbo.2015040101.
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Given the persistent prevalence of conflict of interest in our society, the authors ask the question: What exactly is conflict of interest? Based on an extensive analysis of conflict of interest cases in the popular press, the authors come up with a typology of conflict of interest: personal conflict of interest versus organizational conflict of interest. Furthermore, the authors develop a model of the causes and reactions to conflict of interest. The authors identify four antecedents to conflict of interest which include delegation of authority, guanxi and guanxi practice, law and ethics code, and moral & values. At the same time, the authors find that the characteristics of conflict of interest, which include network strength, exchange value, and transparency will influence people's reactions to the conflict of interest and perception of impaired judgment and decision making.
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Gao, Hongzhi, Monica Ren, and Qing Miao. "Toward a Yin-Yang Balancing Perspective of Relational (Guanxi) Gatekeeping in International Exchange Relationships in China." Journal of International Marketing 26, no. 2 (2018): 22–42. http://dx.doi.org/10.1509/jim.16.0131.
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China is an extremely complex and “insider-controlled” market for foreign businesses. This study offers a yin-yang balancing perspective of international exchange relationships in China. The authors investigate how “relational gatekeepers” play a key role in achieving a dynamic balance between Western companies and local partners in international exchange relationships. In-depth interviews are conducted with 41 business managers based in China, Australia, and New Zealand. Guided by the yin-yang balancing frame, the authors develop four key constructs of relational gatekeeping: the gatekeeper resources of mianzi (insider status) and renqing (insider favor) and the gatekeeper capabilities of zao shi (creating favorable momentum) and ying shi (leveraging favorable momentum). The yin-yang frame provides a process view of business relationships that accepts paradoxical conditions and embraces dynamic network momentum, resources, and capabilities. The study concludes by showing the theoretical implications for network theory and for the field of dynamic balancing and suggests the managerial implications for an international company aiming to engage relational gatekeepers to break into insider (guanxi)-controlled local business networks.
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Luo, Jar-Der. "Guanxi Revisited: An Exploratory Study of Familiar Ties in a Chinese Workplace." Management and Organization Review 7, no. 2 (2011): 329–51. http://dx.doi.org/10.1111/j.1740-8784.2011.00230.x.
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Do Chinese people restrict their complex transactions to a trusted inner circle composed of strong ties? Hwang's (1988) study points out that Chinese people often convert unfamiliar ties into familiar ties when the latter become trustworthy people. This conversion is instrumental in ensuring the fulfilment of promises in complex transactions because it contains an element of emotional attachment or moral obligation. This paper employs network data in a Chinese workplace to demonstrate the following points: first, there is indeed a type of guanxi in the Chinese workplace that can be described as ‘familiar ties’. Second, familiar ties contain as much trust as friendship ties and more than acquaintance ties. A Chinese person may search for his or her possible partners among strangers, then develop trust within this guanxi and gradually transform the relationship into familiar ties. It is through these ties that interpersonal trust can grow and enable complex transactions.
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Badi, Sulafa, Lisha Wang, and Stephen Pryke. "Relationship marketing in Guanxi networks: A social network analysis study of Chinese construction small and medium-sized enterprises." Industrial Marketing Management 60 (January 2017): 204–18. http://dx.doi.org/10.1016/j.indmarman.2016.03.014.
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Chen, Ming-Huei, Yu-Yu Chang, and Meng-Ta Chiang. "Human capital and career success of creative entrepreneurs: is guanxi network a missing link?" Journal of Small Business & Entrepreneurship 29, no. 4 (2017): 313–31. http://dx.doi.org/10.1080/08276331.2017.1300849.
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Chen, Haozhe, James E. Zemanek, Enping (Shirley) Mai, and Yu Tian. "Relationship Flexibility in a 3PL Context: Impacts of Network Embeddedness,Guanxi,and Explicit Contract." Journal of Marketing Channels 22, no. 4 (2015): 253–64. http://dx.doi.org/10.1080/1046669x.2015.1113490.
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Gao, Hongzhi, Monica Ren, and Qing Miao. "A Yin-Yang Perspective of Relational (Guanxi) Gatekeeping in Business Network Management in China." Academy of Management Proceedings 2015, no. 1 (2015): 13002. http://dx.doi.org/10.5465/ambpp.2015.13002abstract.
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Molz, Rick, and Xiaoyun Wang. "Chinese guanxi as network building: the emergence of the new institutional environment in China." Global Business and Economics Review 8, no. 1/2 (2006): 44. http://dx.doi.org/10.1504/gber.2006.008776.
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Chow, Irene Hau-Siu, and Ignace Ng. "The Characteristics of Chinese Personal Ties (Guanxi): Evidence from Hong Kong." Organization Studies 25, no. 7 (2004): 1075–93. http://dx.doi.org/10.1177/0170840604045092.
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A widely held view in management is that guanxi(or Chinese personal connections) are a key element in the success of East Asian economies. In spite of their importance, very little is known about the various characteristics of guanxi. Using data obtained from Hong Kong respondents, we found that classmates, club members, and family friends are guanxibases from which the respondents developed close relationships. Contrary to expectations, associates who work with the respondents or are distant family relatives, or both, tend to have distant relationships with the respondents. We also found that the effect of gender on the closeness of relationships is asymmetrical, with female-to-female dyads being close and male-to-male dyads being distant. Further, our study shows that there is a tendency to request ‘costly’ favors from family members instead of nonfamily members. Lastly, we provide some evidence linking the size of one’s network to one’s ‘face’ in society. Overall, the results suggest a weakening of the family unit in Chinese societies.
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Horak, Sven, Fida Afiouni, Yanjie Bian, Alena Ledeneva, Maral Muratbekova-Touron, and Carl Fey. "Management and Organization Review Special Issue ‘Social Networks ‒ The Dark and Bright Sides of Informal Networks’." Management and Organization Review 14, no. 2 (2018): 439–44. http://dx.doi.org/10.1017/mor.2018.21.
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Research on the mechanisms of organizing and managing via interpersonal relations has a rich history in the management and organization-oriented literature. So far, however, the informal dimension of managing and organizing by drawing on informal networks in an international context has received comparably less attention. Recent research has pointed out that social capital and network theories have largely been developed by Western scholars based on circumstances and social structures that are typical of Western societies. Thus, current theory takes into account to a lesser extent their character and nature and the way in which informal ties and networks are formed in other parts of the world (Ledeneva, 2018; Li, 2007b; Qi, 2013; Sato, 2010). Besides the growing body of literature concerned with informal ties and networks in emerging and transitioning countries, for example guanxi (China), blat/ svyazi (Russia), and wasta (Arab World), a trend for analyzing pervasive informal networks in advanced and industrialized economies, such as yongo (Korea), has arisen. While insights from the latter research stream indicate that informal networks persist, the results generated in both research streams will help in developing the extant informal network theories further.
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Horak, Sven, Fid Afiouni, Yanjie Bian, Alena Ledeneva, Maral Muratbekova-Touron, and Carl Fey. "Management and Organization Review Special Issue ‘Social Networks ‒ The Dark and Bright Sides of Informal Networks’." Management and Organization Review 14, no. 3 (2018): 641–46. http://dx.doi.org/10.1017/mor.2018.47.
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Research on the mechanisms of organizing and managing via interpersonal relations has a rich history in the management and organization-oriented literature. So far, however, the informal dimension of managing and organizing by drawing on informal networks in an international context has received comparably less attention. Recent research has pointed out that social capital and network theories have largely been developed by Western scholars based on circumstances and social structures that are typical of Western societies. Thus, current theory takes into account to a lesser extent their character and nature and the way in which informal ties and networks are formed in other parts of the world (Ledeneva, 2018; Li, 2007b; Qi, 2013; Sato, 2010). Besides the growing body of literature concerned with informal ties and networks in emerging and transitioning countries, for example guanxi (China), blat/svyazi (Russia), and wasta (Arab World), a trend for analyzing pervasive informal networks in advanced and industrialized economies, such as yongo (Korea), has arisen. While insights from the latter research stream indicate that informal networks persist, the results generated in both research streams will help in developing the extant informal network theories further.
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Sheehan, Brett. "Myth and Reality in Chinese Financial Cliques in 1936." Enterprise & Society 6, no. 3 (2005): 452–91. http://dx.doi.org/10.1017/s1467222700014622.
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Much of current scholarly work argues that China and Chinese communities are distinguished by a culturally specific and unique pattern of networking based on personal relations (guanxi), but there is little agreement about whether such personal relations produce discrete factions or more disbursed, weblike connections. The literature on banking networks is similarly unclear, and most discussion has focused on regional groups, such as a clique made up of natives from Zhejiang and Jiangsu provinces, or shared professional values among bankers. None of these approaches adequately describes actual connections, and this case study provides a new and empirically broad approach that applies tools of network analysis to interlocking bank directorships in 1936. This analysis shows the existence of twenty-four isolated banks; three very small, discrete, and regionally based groups; and one huge, diffuse, and weblike bank network that included virtually all Chinese bank assets and extended to most of China’s economically developed regions.
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서영식, Chunsu Lee, and 김순우. "An Exploratory Study on Guanxi Measurement of Network Theory: Focused on Hyundai Motors in China." E-Business Studies 15, no. 5 (2014): 193–209. http://dx.doi.org/10.15719/geba.15.5.201410.193.
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Bilro, Ricardo Godinho, and João Fortes da Cunha. "An exploratory study of Western firms’ failure in the Chinese market: a network theory perspective." Journal of Chinese Economic and Foreign Trade Studies 14, no. 2 (2021): 149–68. http://dx.doi.org/10.1108/jcefts-07-2020-0033.
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Purpose This paper aims to explore the external factors that lead Western firms to fail in the Chinese market, proposing to reveal the main challenges they face in this market, such as culture, guanxi or others. Based on network theory, the authors propose to group failure attributes and actions to predict business failure. Design/methodology/approach Qualitative research based on in-depth interviews is conducted, with a sample of 21 individuals, from former/current managers that did or are currently doing business in China and a person from the Chinese Government. This research resorts to inductive reasoning and to Atlas.ti software to perform the analysis. Findings The findings reveal that it is possible to cluster seven distinct categories of external factors. Additionally, Chinese culture, local partnerships and the “catching-up effect” by Chinese firms are also external factors to be considered. The role of guanxi in China is changing, taking another format, and international companies in the Chinese market must take this into account. Research limitations/implications Several limitations arise in this research, such as information availability and time constraints, sample size and the characteristics of Chinese society (i.e. type of government). This study also proposes further confirmatory research to test the seven clusters proposed. Practical implications Managers can understand patterns of business failures when targeting the Chinese market and use the seven clusters as a tool to address this market appropriately in the future. Originality/value This paper intends to shed light on Western firms’ business failure in the Chinese market. The authors argue that several external factors linked to network surroundings contribute to Western firms failing in this market and that network failure attribution is still an understudied topic.
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Zhao, Miaoxi, Yanliu Lin, and Ben Derudder. "Demonstration of public participation and communication through social media in the network society within Shanghai." Environment and Planning B: Urban Analytics and City Science 45, no. 3 (2017): 529–47. http://dx.doi.org/10.1177/2399808317690154.
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The rapid development of information and communication technology has led to the Internet and social media becoming a vital platform for public participation in China. The present research sought to understand the complexity of participation in the network society by taking the cancellation of the number 55 bus route in Shanghai as a case study. Both qualitative and quantitative research methods were used to analyze data from a leading social networking site in China. An analysis of participation patterns led to an understanding of the main characteristics of public participation in the network society, and a statistical analysis of the network revealed the features of elite participants in the planning adjustment. A qualitative approach was also used to explore the communication process, which was influenced by Chinese social capital— guanxi. The case study revealed an uneven pattern of public participation in the network society, and suggestions are provided to enhance fairness and effectiveness in this process.