Skip to main content
Log in

On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development

  • Published:
Asia Pacific Journal of Management Aims and scope Submit manuscript

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.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

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.

    Google Scholar 

  • 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.

    Google Scholar 

  • E. Berscheid, "Interpersonal attraction," in G. Lindzey and E. Aronson (eds.),Handbook of Social Psychology, vol. 2, 3rd ed. New York: Random House, 1985.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • D.J. Brass, "A social network perspective on human resources management," Research in Personnel and Human Resources Management, vol. 13, pp. 39–79, 1995.

    Google Scholar 

  • R.S. Burt,Structural Holes: The Social Structure of Competition. Cambridge, MA: Harvard University Press, 1992.

    Google Scholar 

  • K. Carley, "A theory of group stability," American Sociological Review, vol. 56, pp. 331–354 1991.

    Google Scholar 

  • A.L. Chaikin and V.J. Derlega, "Liking for the norm-breaker in self-disclosure," Journal of Personality, vol. 42, pp. 112–129, 1974.

    Google Scholar 

  • M. Chen,Asian Management Systems: Chinese, Japanese and Korean Styles of Business. London and New York: Routledge, pp. 52–66, 1995.

    Google Scholar 

  • 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.

    Google Scholar 

  • Confucius,The Ethics of Confucius. New York: Putnam, 1915.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • X.T. Fei,From the Soil: The Foundations of Chinese Society. Berkeley: University of California Press, 1992/1947.

    Google Scholar 

  • U.G. Foe and E.B. Foe,Societal Structures of the Mind. Charles Thomas, Springfield, IL, 1984.

    Google Scholar 

  • M.H. Fried,Fabric of Chinese Society: A Study of Social Life of a Chinese County Seat. New York: Praeger, 1953.

    Google Scholar 

  • F. Fukuyama,Trust: The Social Virtues and the Creation of Prosperity. New York: The Free Press, 1995.

    Google Scholar 

  • T.B. Gold, "After comradeship: Personal relations in china since the cultural revoloution," China Quarterly, vol. 104, pp. 657–675, 1985.

    Google Scholar 

  • A.W. Gouldner, "The norm of reciprocity: A preliminary statement," American Sociological Review, vol. 25, no. 2, pp. 161–178, 1960.

    Google Scholar 

  • M. Granovetter, "The strength of weak ties," American Journal of Sociology, vol. 78, pp. 1360–dy1380, 1973.

    Google Scholar 

  • 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.

    Google Scholar 

  • E.T. Hall,Beyond Culture. Garden City, NJ: Anchor Books/Doubleday, 1976.

    Google Scholar 

  • C. Hampden-Turner and F. Trompenaars,Mastering the Infinite Game: How East Asian Values Are Transforming Business Practices. Oxford, England: Capstone Publishing Limited, 1997.

    Google Scholar 

  • G. Hofstede,Culture's Consequences. Beverly Hills, CA: Sage, 1980.

    Google Scholar 

  • G. Hofstede,Cultures and Organizations: Software of the Mind. London: McGraw-Hill, 1991.

    Google Scholar 

  • K.K. Hwang, "Face and favor: The Chinese power game," American Journal of Sociology, vol. 92, pp. 944–974, 1987.

    Google Scholar 

  • 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.

    Google Scholar 

  • S.M. Liang,The Essential Features of Chinese Culture (In Chinese). Beijing: San-Lian Bookstore, 1963.

    Google Scholar 

  • 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.

    Google Scholar 

  • N. Luhman,The Differentiation of Society. New York: Columbia University Press, 1982.

    Google Scholar 

  • N. Luhman,Essays on Self-Reference. New York: Columbia University Press, 1990.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • S.G. Redding,The Spirit of Chinese Capitalism. New York: Walter de Gruyter, 1993.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • Z. Rubin,Liking and Loving: An Invitation to Social Psychology. New York: Holt, Rinehart, & Winston, 1973.

    Google Scholar 

  • J.B. Smith, "Buyer-seller relationships: Similarity, relationship management and quality," Psychology and Marketing, vol. 15, pp. 76–92, 1998a.

    Google Scholar 

  • L.-K. Sun,The "Deep Structure" of the Chinese Culture. (In Chinese). Taipei: Tonsan Publishers, 1990.

    Google Scholar 

  • J.W. Thibaut and H.H. Kelley,Interpersonal Relations: A Theory of Interdependence. Wiley, New York, 1959.

    Google Scholar 

  • H.C. Triandis,Individualism and Collectivism. Bourlder, CO: Westview Press, 1995.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • 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.

    Google Scholar 

  • M.M. Yang,Gifts, Favors, and Banquets: The Art of Social Relationships in China. Ithaca, NY: Cornell University Press, pp. 109–145, 1994.

    Google Scholar 

  • 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.

Download references

Author information

Authors and Affiliations

Authors

Rights and permissions

Reprints 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

Download citation

  • Issue Date:

  • DOI: https://doi.org/10.1023/B:APJM.0000036465.19102.d5

Navigation