Abstract
Guanxi (personal connection) has been identified as a necessary condition to do business successfully in China. In this paper, we seek a clear conceptual understanding of this prevalent construct and propose a three-stage model of guanxi development so as to stimulate systematic research in this area. Our conceptual and theoretical discussion of guanxi bases,guanxi objectives, and the operating principles at different stages of guanxi development will also help practitioners to use guanxi more effectively.
Similar content being viewed by others
References
J.S. Adams, "Inequity in social exchanges," in L. Berkowitz (ed.),Advances in Experimental Social Psychology, New York: Academic Press, pp. 267–300, 1965.
Jon P. Alston, "Wa Guanxi, and Inhwa: Managerial principles in Japan, China, and Korea," Business Horizons, pp. 26–31, 1989.
D. Bejou, B. Wray, and T.N. Ingram, "Determinants of relationship quality: An artificial neural network analysis," Journal of Business Research, vol. 36, pp. 137–143, 1996.
E. Berscheid, "Interpersonal attraction," in G. Lindzey and E. Aronson (eds.),Handbook of Social Psychology, vol. 2, 3rd ed. New York: Random House, 1985.
E. Berscheid, M. Snyder, and A.M. Omoto, "The Relationship closeness inventory: Assessing the closeness of interpersonal relationships," Journal of Personality and Social Psychology, vol. 57, pp. 792–807, 1989b.
Y.J. Bian, "Brining strong ties back in: indirect ties, network bridges, and job searches in China," American Sociological Review, vol. 62, pp. 366–385, 1997.
M.H. Bond and K.K. Hwang, "The social psychology of Chinese people," in M.H. Bond (ed.),The Psychology of the Chinese People. New York: Oxford University Press, pp. 213–266, 1986.
D.J. Brass, "A social network perspective on human resources management," Research in Personnel and Human Resources Management, vol. 13, pp. 39–79, 1995.
R.S. Burt,Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press, 1992.
K. Carley, "A theory of group stability," American Sociological Review, vol. 56, pp. 331–354 1991.
A.L. Chaikin and V.J. Derlega, "Liking for the norm-breaker in self-disclosure," Journal of Personality, vol. 42, pp. 112–129, 1974.
M. Chen,Asian Management Systems: Chinese, Japanese and Korean Styles of Business. London and New York: Routledge, pp. 52–66, 1995.
X.P. Chen and S.Q. Peng, "The change of guanxicloseness in Chinese organizations: An explorative study," Presented in the Inaugural Conference of the International Association for Chinese Management Research, Beijing, 2004.
J.S. Coleman,The Mathematics of Collective Action. Chicago: Aldine, 1973.
Confucius,The Ethics of Confucius. New York: Putnam, 1915.
L.A. Crosby, K.R. Evans, and D. Cowles, "Relationship quality in services selling: An interpersonal influences perspective," Journal of Marketing, vol. 54, pp. 68–81, 1990.
H. Davies, T.K.P. Leung, S.T.K. Luk, and Y.H. Wong, "The benefits of "guanxi"," Industrial Marketing Management, vol. 24, pp. 207–214, 1995.
J-L. Farh, A.S. Tsui, K.R. Xin, and B.S. Cheng, "The influence of relational demography and guanxi: The Chinese case," Organization Science, vol. 9, pp. 471–487, 1998.
X.T. Fei,From the Soil: The Foundations of Chinese Society. Berkeley: University of California Press, 1992/1947.
U.G. Foe and E.B. Foe,Societal Structures of the Mind. Charles Thomas, Springfield, IL, 1984.
M.H. Fried,Fabric of Chinese Society: A Study of Social Life of a Chinese County Seat. New York: Praeger, 1953.
F. Fukuyama,Trust: The Social Virtues and the Creation of Prosperity. New York: The Free Press, 1995.
T.B. Gold, "After comradeship: Personal relations in china since the cultural revoloution," China Quarterly, vol. 104, pp. 657–675, 1985.
A.W. Gouldner, "The norm of reciprocity: A preliminary statement," American Sociological Review, vol. 25, no. 2, pp. 161–178, 1960.
M. Granovetter, "The strength of weak ties," American Journal of Sociology, vol. 78, pp. 1360–dy1380, 1973.
W.B. Gudykunst, Y. Matsumoto, S.Ting-Toomey, T. Nishida, K.S. Linda, and S. Heyman, "The influence of cultural individualism-collectivism, self construals, and individual values on communication styles across cultures," Human Communication Research, vol.22, pp. 510–543, 1996.
E.T. Hall,Beyond Culture. Garden City, NJ: Anchor Books/Doubleday, 1976.
C. Hampden-Turner and F. Trompenaars,Mastering the Infinite Game: How East Asian Values Are Transforming Business Practices. Oxford, England: Capstone Publishing Limited, 1997.
G. Hofstede,Culture's Consequences. Beverly Hills, CA: Sage, 1980.
G. Hofstede,Cultures and Organizations: Software of the Mind. London: McGraw-Hill, 1991.
K.K. Hwang, "Face and favor: The Chinese power game," American Journal of Sociology, vol. 92, pp. 944–974, 1987.
J.B. Jacobs, "The concept of guanxiand local politics in a rural Chinese cultural setting," in S. Greenblatt, R. Wilson, and A. Wilson (eds.),Social Interaction in Chinese Society. Praeger Publisher, 1982.
A.Y. King, "Kuan-his and network building: A sociological interpretation," Daedalus, vol. 120, pp. 63–84, 1991.
S.M. Liang,The Essential Features of Chinese Culture (In Chinese). Beijing: San-Lian Bookstore, 1963.
N. Lin, "Guanxi: A conceptual analysis," in A. So, N. Lin, and D. Poston (eds.),The Chinese Triangle of Mainland, Taiwan, and Hong Kong: Comparative Institutional Analysis. Westport, CT: Greenwood, 2001.
N. Luhman,The Differentiation of Society. New York: Columbia University Press, 1982.
N. Luhman,Essays on Self-Reference. New York: Columbia University Press, 1990.
R.C. Mayer, J.H. Davis, and F.D. Schoorman, "An integrative model of organizational trust," Academy of Management Review, vol. 20, pp. 709–734, 1995.
D.J. McAllister, "Affect-and cognition-based trust as foundations for interpersonal cooperation in organizations," Academy of Management Journal, vol. 38, pp. 24–59, 1995.
V. Nee, "Organizational dynamics of market transition: Hybrid forms, property rights, and mixed economy in China," Administrative Science Quarterly, vol. 37, pp. 1–27, 1992.
S.G. Redding,The Spirit of Chinese Capitalism. New York: Walter de Gruyter, 1993.
G. Redding and G.Y.Y. Wong, "The psychology of Chinese organizational behavior," in M.H. Bond (eds.),The Psychology of the Chinese People. New York: Oxford University Press, pp. 213–266, 1986.
S.G. Redding, A. Norman, and A. Schlander, "The nature of individual attachment to the organization: A review of east asia variations," in M.D. Dunnette and L.M. Hough (eds),Handbook of Industrial and Organizational Psychology. Palo Alto, CA: Consulting Psychology Press, vol. 4, 1993, pp. 647–688.
Z. Rubin,Liking and Loving: An Invitation to Social Psychology. New York: Holt, Rinehart, & Winston, 1973.
J.B. Smith, "Buyer-seller relationships: Similarity, relationship management and quality," Psychology and Marketing, vol. 15, pp. 76–92, 1998a.
L.-K. Sun,The "Deep Structure" of the Chinese Culture. (In Chinese). Taipei: Tonsan Publishers, 1990.
J.W. Thibaut and H.H. Kelley,Interpersonal Relations: A Theory of Interdependence. Wiley, New York, 1959.
H.C. Triandis,Individualism and Collectivism. Bourlder, CO: Westview Press, 1995.
E.W.K. Tsang, "Can guanxibe a source of sustained competitive advantage for doing business in China?" Academy of Management Executive, vol. 12, no. 2, pp. 64–73, 1998.
A.S. Tsui and J.L. Farh, "Where Guanximatters: Relational demography and guanxiin the Chinese context,"Work and Occupations, vol. 24, no. 1, pp. 56–79, 1997.
M.J. Won-Doornink, "On getting to know you: The association between the stage of relationship and reciprocity of self-disclosure," Journal of Experimental Social Psychology, vol. 15, pp. 229–241, 1979.
K.R. Xin and J.L. Pearce, "Guanxi: Connections as substitutes for formal institutional support," Academy of Management Journal, vol. 39, pp. 1641–dy1658, 1996.
C.F.Yang, "Psychocultural foundations of information group: The issues of loyalty, sincerity, and trust," L. Dittmer, H. Fukui, and P.N.S. Lee (eds.),Informal Politics in East Asia. New York: Cambridge University Press, 1997.
C.F.Yang, "Acritical reviewof the conceptualization of guanxi and renqing," in C.F.Yang (eds.),The Interpersonal Relationship, Affection, and Trust of the Chinese:Froman InteractionalPerspective, Taipei: Yuan Liou Pulishing Co. (in Chinese), pp. 3–26, 2001a.
C.F. Yang, "A reconceptualization of the Chinese guanxi and renqing," in C.F. Yang (ed.),The Interpersonal Relationship, Affection, and Trust of the Chinese:Froman InteractionalPerspective, Taipei: Yuan Liou Pulishing Co. (in Chinese), pp. 337–370, 2001b.
L-S. Yang, "The concept of PAO as a basis for social relations in China," in J.K. Fairbank (ed.),Chinese Thought and Institutions. Chicago: Phoenix Books, 1967.
M.M. Yang,Gifts, Favors, and Banquets: The Art of Social Relationships in China. Ithaca, NY: Cornell University Press, pp. 109–145, 1994.
I.Y.M. Yeung and R.L. Tung, "Achieving business success in confucian societies: The importance of Guanxi(connections)," Organizational Dynamics, vol. Autumn, pp. 54–65, 1996.
Author information
Authors and Affiliations
Rights and permissions
About this article
Cite this article
Chen, XP., Chen, C.C. On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development. Asia Pacific Journal of Management 21, 305–324 (2004). https://doi.org/10.1023/B:APJM.0000036465.19102.d5
Issue Date:
DOI: https://doi.org/10.1023/B:APJM.0000036465.19102.d5