Personal Networking in Russia and China:

Abstract

Blat and guanxi are terms describing personal networks in Russia and China respectively.They have existed and been practiced for centuries and remain highly relevant today. By employing a social network perspective, we analyze the architecture of blat and guanxi and some of the similarities between them. We also argue that personal networks in Russia and China are products of specific cultural heritages and as such have their own particular configurations and characteristics. Following a dynamic perspective, we examine how blat and guanxi have evolved over time: while they were similar in a number of dimensions during the command economy period, there are interesting signs of increasing differentiation in the post-command decade. The paper outlines important insights for Western managers and expatriates in terms of surviving in and effectively using blat and guanxi.

Changing patterns of global staffing in the multinational enterprise: Challenges to the conventional expatriate assignment and emerging alternatives

“…Some researchers have argued that IBTs do not come under the remit of alternative forms of international assignments as, they do not involve physical relocation to a different country (Welch and Worm, 2006). However, following Fenwick (2004) we include them in our discussion because the evidence suggests that they are an important alternative to the traditional expatriate assignment for MNCs (Michailova and Worm, 2003). IBTs provide the advantage of face-to-face interaction in conducting business transactions without the requirement for their physical relocation.…”

Theoretical Foundations

“…For example, although managerial networking remains an important phenomenon across emerging economies, substantial differences exist in the practices of building, maintaining, and utilizing network relationships (Batjargal, 2007;Michailova & Worm, 2003). Also the relative importance of different types of networking partners varies: whereas in Russia and China ties between managers and officials appear most important (Okhmatovskiy, 2010;Peng & Luo, 2000;Peng, Sun, & Markóczy, 2015;Puffer et al, 2013), in Africa ties with ruling party incumbents or with tribal leaders are more valuable (Acquaah, 2007).…”

Guanxi and the Organization of Chinese New Year Festivals in England

“…Guanxi is usually defined as a personal relationship in Chinese culture (King, 1991;Machailova & Worm, 2003). Guanxi is cultivated through comparatively long-term interactions and developed through the exchange of information, gifts, and economic favors based on mutual trust and assistance (Chen & Chen, 2009;Chua, Morris, & Ingram, 2009;Sum, 1999).…”

“…Although personal networks occur in every society, the style and conventions vary in different cultural settings. Here it is argued that guanxi is a uniquely Chinese sociocultural phenomenon because it is linked to traditional Confucian social theory and, in mainland China, is also related to the contemporary socioeconomic system (Chua et al, 2009;Machailova & Worm, 2003).…”

“…Thus, in guanxi, economic dependence may serve to strengthen the affective relationships between two individuals. However, in contrast, Western cultures may seek to limit or avoid economic dependence in their personal networks (Chua et al, 2009;Machailova & Worm, 2003). Third, through the mediation of guanxi, the exchange of services, gifts, and resources happens in work places regularly in Chinese society and arguably more so than in other cultures (Chua et al, 2009;Machailova & Worm, 2003).…”