Guanxi

Abstract

Guanxi, a Chinese concept, refers to drawing on connections in order to secure favors in personal relations. It differs from the western concept of networking or friendship. In this note, we explain the nature, principles, and characteristics of guanxi. We also demystify the economic rationale and the business functions of guanxi. Finally, we introduce several theoretical frameworks to explain the guanxi‐performance link and summarize some seminal empirical results on this topic.

Chinese Concepts and Relational International Politics

“…32 In fact, some have gone as far as to claim that what (Western) observers usually criticize as the corrupt side of guanxi is in fact the misunderstood 'Confucian Ethic' of Asian capitalism. 33 As the above discussion demonstrates, both the positive and negative features of guanxi reflect an idiosyncratic coalescence between tradition and modernity -or what some have referred to as the 'critical inheritance and critical transformation of Chinese thought' 34 -in the process of achieving collective goals. In particular, guanxi reflects a commitment to act in accordance with social demands and expectations.…”

“…14 Metaphorically speaking however 'inside the door [or within the boundaries set by the barriers/toll gates] you may be "one of us," but outside the door your existence is barely recognized'. 15 This inference should not be misunderstood as a suggestion of a rigidly-structured framework of exclusion. On the contrary, guanxi denotes openness to connections with other people and suggests a far more flexible and dynamic 'web of relationships that functions as the set of interlocking laces which connects people of different weis [positions/status]'.…”

“…17 Guanxi is more often than not understood to denote the establishment and maintenance of 'an intricate and pervasive relational network' engendered by the practice of unlimited exchange of favours between its members and bound by reciprocal obligation, assurance, and mutuality. 18 Yet, many have hinted that such practices reflect a far richer meaning of the term in Chinese than in its English counterpart 'relationship' -namely, 'guanxi refers to relationship in the most profound sense of the term'. 19 Owing to the dynamism of social interactions, 'the final word on guanxi can never be concluded' since the practices that it denotes are constantly evolving to adapt to the ever-changing contexts and patterns of global life.…”

“…It has been labelled as 'the lifeblood of all things Chinese -business, politics, and society'. 21 The grandee of China Studies, Lucien Pye referred to it as 'one of the most fundamental aspects of Chinese political behaviour', 22 while the political philosopher Wenshan Jia 23 claims that guanxi is one of the central philosophical concept that 'reflects the Chinese way to know about reality (ontology), the Chinese way to interpret reality (phenomenology), and the Chinese values about humanity (axiology)'. On the other hand, guanxi's significance appears to be of a very recent provenance.…”

Silence in Intercultural Collaboration: A Sino-Dutch Research Centre

“…This distinction can be recognized in the context of networking behaviour. In the West, networking is generally associated with individualism and highlights the commitment to personal tasks and projects (Luo, 1997;Ai, 2006). The individual transaction is seen as the most important unit of exchange.…”