The Importance of Guanxi to Multinational Companies in China

Abstract

Guanxi is an important part of Chinese business culture, and there are a large number of business people from all over the world coming to China since its opening up and reform policies. The purpose of this paper is to examine the importance of Guanxi to multinational companies in China, and discuss if its importance has declined since China's opening up and reform policies have reached an advanced stage or not. In China, Guanxi can not only assist transnational companies to obtain sources of information and resources, including business opportunities, government policies, and scarce necessities and professionals, but also be of great value to them in terms of building up corporate reputation, enlarging market share and even motivating employees, although associated with bribery and corruption. Thus, Guanxi is definitely important for international enterprises in China, and it remains significant despite of advanced opening-up and reform policies.

Green and lean sustainable development path in China: Guanxi , practices and performance

“…Thus, guanxi plays a vital role in Chinese organisations. The literature has already shown that there are direct relationships between guanxi and organisational performance (Wong, 2007;Cheng, 2011;Tsai et al, 2013;Yang, 2011), but the focus of the present research is more on examining whether guanxi plays a role to moderate the relationship between green and lean practices and organisational performance. Therefore, we use guanxi as a moderator in this study.…”

An Integrative Perspective on Guanxi: Dispelling Myths to Facilitate Business in China

“…However, other studies maintain that guanxi will remain important in China (e.g., Cochrane, ; Davies et al., ; Ritchie, ; M. M.‐H. Yang, ; F. Yang, ). Given the fact that guanxi has been strongly enshrined in Chinese society, language, and culture for thousands of years, it would be naïve to think that its importance will diminish overnight.…”

“…Lee & Ellis (2000); Luo, 2007; E. W. K. Tsang, 1998;Tsui & Farh, 1997;Wang, 2005;Yang, 1994). In particular, Davies et al (1995) and M. M.-H. Yang (2011) stressed the benefits and importance of guanxi when doing business in China. Studies on guanxi have become so numerous that review articles have been published on this subject as well (e.g., C. C. Chen, Chen, & Huang, 2013;Zhang & Pimpa, 2010).…”

Empowering Corporate Social Responsibility in Chinese Nongovernmental Organizations

“…Guanxi denoted a trustworthy long‐term relationship and may have facilitated business collaboration in an effective manner (McNally). Fang () and Yenhui () contended guanxi is a management instrument that positively influences an organization's social responsibility.…”

“…Guanxi denoted a trustworthy long-term relationship and may have facilitated business collaboration in an effective manner (McNally). Fang (2011) and Yenhui (2011) contended guanxi is a management instrument that positively influences an organization's social responsibility. Bailey (2011) rejected the view claiming that Confucian skeptics can and ought to accommodate the Western view of recognizing rights in the workplace.…”