This paper extends the discussion of guanxi beyond instrumental evaluations and advances a normative assessment of guanxi. Our discussion departs from previous analyses by not merely asking, Does guanxi work? but rather Should corporations use guanxi? The analysis begins with a review of traditional guanxi definitions and the changing economic and legal environment in China, both necessary precursors to understanding the role of guanxi in Chinese business transactions. This review leads us to suggest that (...) there are distinct types of, and uses for guanxi. We identify the potentially problematic aspects of certain forms of guanxi from a normative perspective, noting among other things, the close association of particular types of guanxi with corruption and bribery. We conclude that there are many different forms of guanxi that may have distinct impacts on economic efficiency and the well-being of ordinary Chinese citizens. Consistent with Donaldson and Dunfee (1999), we advocate a particularistic analysis of the different forms of guanxi. (shrink)

"Guanxi" involves interpersonal obligations, which may conflict with other obligations people have that are based on general or abstract moral considerations. In the West, the latter have been widely accepted as the general source of obligations, which is perhaps tied to social changes associated with the rise of capitalism. Recently, Western ethicists have started to reconsider the extent to which personal relationships may form a distinct basis for obligation. In administration and management, salient bases for decision-Making include deontological, consequentialist (...) and personalist ethics. The first may be reflected in a bureaucratic approach, the second in a price system, and the third in arrangements like "guanxi". Each has positive and negative aspects, but problems arise when they lead to conflicting obligations, as may occur for an office holder who has some obligations based in deontological considerations and others based in personal relationships. This is a type of conflict of interest. Such conflicts have been considered in the West, and remedies proposed. Problems arise especially in cases where it is not clear how to prioritise different obligations, and this has been noted as a difficulty in the Chinese legal system. Questions that need to be answered include not only questions about how to deal with conflicting obligations, but also questions about what institutions to accept as giving rise to obligations. Institutions themselves may be problematic not only because of their consequences for economic productivity, but because they are internally incoherent, and this may be manifested in frequent conflicts faced by office holders. (shrink)

In China, guanxi is the basis on which Chinese exchange a lifetime of favors, resources, and business leverage. Guanxi is considered a unique construct and a product of Confucian values and the contemporary political and socioeconomic system in Chinese society. With its cultural embeddings guanxi , as the social norm of conduct, functions as complex adaptive systems that expand and interconnect to become well-knit social networks; meanwhile the functions of well-fixing and self-reinforcement of the guanxi networks (...) ( chuens ) are synergetically activated internally, externally, and interactively, which shows their extreme flexibility of adaptation. Taking as a case study an outside direct investment (ODI) Taiwanese firm in China, we address and conduct a survey to examine the effect of guanxi on management. Results of the research suggest that guanxi is not limited to interpersonal links; it is also the switch that activates social networks and that reconciles interpersonal and internetwork mismatches to influence management efficacy. (shrink)

Guanxi (literally interpersonal connections) is in essence a network of resource coalition-based stakeholders sharing resources for survival, and it plays a key role in achieving business success in China. However, the salience of guanxi stakeholders varies: not all guanxi relationships are necessary, and among the necessary guanxi participants, not all are equally important. A hierarchical stakeholder model of guanxi is developed drawing upon Mitchell et al.’s (1997) stakeholder salience theory and Anderson’s (1982) constituency theory. As (...) an application of instrumental stakeholder theory, the model dimensionalizes the notion of stakeholder salience, and distinguishes between and among internal and external guanxi, core, major, and peripheral guanxi, and primary and secondary guanxi stakeholders. Guanxi management principles are developed based on a hierarchy of guanxi priorities and management specializations. The goal of this application of instrumental stakeholder theory is to construct, for Western business firms in China, a means to reliably identify guanxi partners by employing the principles of effective guanxi. These principles are described in the form of testable propositions that advance social scientific research in this area of international business ethics. (shrink)

. This paper explores the relationship between gift giving, guanxi and corruption through a study of the relationships between UK manufacturing companies in China and their local component suppliers. The analysis is based on interviews in the China-based operations of 49 UK companies. Interviews were carried out both with senior (often expatriate) staff and with local line managers who were responsible for everyday purchasing decisions and for managing relationships with suppliers. The results suggest that gift giving is perceived to (...) be a significant problem in UK-owned companies in China. However the relationship between these payments and established understanding of gift giving within guanxi-networks appears to be weak. Gift giving appears to be associated with illicit payments, corruption and the pursuit of self-interest. Firms seek to reduce the incidence of illicit transactions by changing staff roles, instituting joint responsibilities, which include the separation of different aspects of sourcing/purchasing, ineasing the involvement of senior staff in the process and through the education of employee and suppliers. (shrink)

"Guanxi" involves interpersonal obligations, which may conflict with other obligations people have that are based on general or abstract moral considerations. In the West, the latter have been widely accepted as the general source of obligations, which is perhaps tied to social changes associated with the rise of capitalism. Recently, Western ethicists have started to reconsider the extent to which personal relationships may form a distinct basis for obligation. In administration and management, salient bases for decision-Making include deontological, consequentialist (...) and personalist ethics. The first may be reflected in a bureaucratic approach, the second in a price system, and the third in arrangements like "guanxi". Each has positive and negative aspects, but problems arise when they lead to conflicting obligations, as may occur for an office holder who has some obligations based in deontological considerations and others based in personal relationships. This is a type of conflict of interest. Such conflicts have been considered in the West, and remedies proposed. Problems arise especially in cases where it is not clear how to prioritise different obligations, and this has been noted as a difficulty in the Chinese legal system. Questions that need to be answered include not only questions about how to deal with conflicting obligations, but also questions about what institutions to accept as giving rise to obligations. Institutions themselves may be problematic not only because of their consequences for economic productivity, but because they are internally incoherent, and this may be manifested in frequent conflicts faced by office holders. (shrink)

Building on research that analyzes how social relations and networks shape the Chinese market, this article asks a less-studied question: How is the market changing guanxi? The authors trace the transformation of guanxi from communal, kin-based ties to a cultural metaphor with which diverse individuals build flexible social relationships in late-socialist China. As a “generalized particularism,” this cultural metaphor provides something analogous to the culture of civility in Western societies. The authors discuss the political potential of guanxi (...) in terms of its dual tendency toward the “publicization” and “privatization” of power. The development of guanxi civility suggests the diverse cultural origins of civility and serves as a reminder of the particularistic roots in the universalistic assumption of Western civility. (shrink)

Guanxi, or social networks common in Confucian cultures, has long been recognized as one of the major factors for success when doing business in China. However, insider networks in business are certainly not confined to Asian cultures, nor is the attendant possibility for corruption. This study obtained original data to investigate current Taiwanese perceptions of (1) how guanxi is established and cultivated; (2) how guanxi actually is practiced now and people’s acceptance of it; and (3) the effects (...) of guanxi on business operations, employment/promotion, and social justice and fairness. The researchers also hope to (4) verify some arguments made by pioneering researchers. The authors speculate on how these attitudes may affect behavior in business transactions in hopes of making readers more aware of differing cultural values that may create unexpected ethical dilemmas. They suggest that professional ethical codes should provide guidance on the practice of guanxi in a Confucian society and that special emphasis or training in interpreting those codes may be required. (shrink)

Guanxi as one of the key factors leading to business success in China (PRC) has ironically been synonymous with bribery. This raises some serious questions: should Western foreign firms do business in China? How should they do business with Chinese firms? This study investigated the relationship between guanxi orientation and cognitive moral development in an attempt to determine whether the level of guanxi orientation of Chinese business people affects their ethical reasoning. Based on a classification of Chinese (...) enterprises (Nee, 1992), it was found that Chinese enterprises rely on guanxi for business to different extents. However, their levels of cognitive moral development are not significantly different, suggesting that guanxi orientation has very little to do with ethical reasoning (as captured through an established measure of cognitive moral development). Furthermore, time in profession was found to positively affect guanxi orientation; however, age failed to predict guanxi orientation and education turned out to be a negative predictor of guanxi orientation. (shrink)

Guanxi is essential to doing business in China. Even those who are minimally familiar with business in the People’s Republic seem to know this. How should Western business organizations look at guanxi? Further, if guanxi is seen as essential, what is the responsible approach to guanxi building? These questions may have different answers depending on one’s perspectives. First, what is guanxi?

Guanxi is essential to doing business in China. Even those who are minimally familiar with business in the People’s Republic seem to know this. How should Western business organizations look at guanxi? Further, if guanxi is seen as essential, what is the responsible approach to guanxi building? These questions may have different answers depending on one’s perspectives. First, what is guanxi?

Guanxi in China is a very ancient concept embedded in the Confucian concept of life and one that is a ‚hot' topic in that it is currently attracting increasing attention from both Western and Chinese scholars. One aspect of Guanxi which has been the subject of most of the research of late is the influence of Guanxi on firm performance. However, relatively few studies have examined how Guanxi at the individual level is transferred into a firm (...) to influence its financial performance. This study first reclassifies Guanxi into obligatory, reciprocal, and utilitarian types at the individual level as a means to clarifying the confusion brought above from previous studies. It then provides a conceptual framework in which to systematically characterize the link between Guanxi at the individual level and organizational dynamics: that is, how is Guanxi at the individual level shifted to a firm and how does it affect organizational dynamics of that firm at the organizational level. Finally, it provides a deeper understanding of the financial implications of Guanxi to business firms in China. (shrink)

Guanxi is a complex construct of Chinese social interaction. Previous studies have focused on implications of guanxi for business outcomes; few have examined guanxi development, which is the purpose of this study. Two theoretical modes of dynamic guanxi processes in the workplace are proposed: working guanxi and backdoor guanxi . The two modes differ in frequency of interaction, frequency of exchange of favors, and how clear the parties are on what each stands to gain (...) from a particular interaction. Although face is expected to play a role in the development of each, the type of face that is most important differs. For working guanxi , lian (personal character) is most important. For backdoor guanxi , mianzi (status) is most important. Backdoor guanxi is the mode most likely to be associated with corruption, bribery, and client–patron relations. The psychological and social processes underlying development of these two modes of guanxi are explored and a basic model proposed as a basis for future research on guanxi , face, and ethics. (shrink)

This paper represents an effort to distinguish between two types of guanxi prevalent in mainland China: favor-seeking guanxi that is culturally rooted and rent-seeking guanxi that is institutionally defined. Different rules of maneuvering the two types of guanxi are identified in light of Chinese cultural and business ethics. Strategies for entering guanxi in mainland China are also suggested.

A consensus holds that guanxi, understood as dyadic connections consolidated affectively and mobilized to achieve the purposes of members, exists in three forms (family guanxi, friendship guanxi, and acquaintance guanxi) distinguished by the strength of felt obligation between participants. It is also held that through practices of fictive kinship friendship guanxi may merge with family guanxi. This article challenges these propositions and the assumptions underlying them. Obligations of kinship and guanxi obligations are fundamentally (...) dissimilar and the term “family guanxi” is redundant. Pseudo-family ties do not provide access to kin relations and their resources but instead affirm the distinction between family- and friendship-ties. Finally, because guanxi is cultivated by its participants, friendship guanxi and acquaintance guanxi are not distinct forms but rather are different possible stages of guanxi formation. The article goes on to consider the sources of these confusions, namely, common-language terms employed in sociological analysis, certain assumptions concerning Chinese culture, and finally methodological commitments that privilege latent structures of strong ties. The strength of guanxi ties, on the other hand, volitionally cultivated and indifferent to structural determination, fluctuates through agentic practices. (shrink)

This study empirically examines how Chinese executives perceive the role of guanxi and ethics played in their business operations. By factor-analyzing 850 valid replies collected from a comprehensive survey, the present study identifies three distinct ethics-related attitudes and two distinct guanxi-related attitudes for Chinese executives. The cluster analysis of the composite scores of these five attitudinal factors further indicates the existence of three distinct groups of Chinese executives that vary in their ethics and guanxi orientations. The three (...) groups are unethical profit seeker (UPS), anti-governance, guanxi-cultivator (AGGC), and apathetic executive (AE). The three groups are also found to be significantly different in such demographic characteristics as age and the ownership structure of the serving organization. Specifically, the inter-group comparison suggests that younger Chinese executives, and those working for privately-owned firms and joint ventures are more inclined to engage in unethical activities for profits. These findings provide useful insights for international investors to formulate their human resource and negotiation strategies in China. (shrink)

Using professional accountants as respondents in Hong Kong, this study strives to develop a model to depict the effect of ethical reasoning on the relationships between guanxi and auditors; behaviour in an audit conflict situation. The results of the study found that (1) there is a significant relationship between an auditor's ethical judgement and one's moral cognitive development; (2) there is a relationship between an auditor's ethical judgement and the existence of guanxi; and (3) the impact of (...) class='Hi'>guanxi on an auditor's judgement is depending on the level of ethical reasoning. (shrink)

This study aims to explore the role of informal leader–member interactions in managing counterproductive work behavior in a non-Western context. We propose that under the Chinese background, guanxi with supervisor increases employees’ job satisfaction, which further reduces their CWB. Partial least square structural equation modeling with a sample of 272 Chinese employees confirms this mediating effect of job satisfaction. However, we also find that job satisfaction passes the effect of guanxi with supervisor on to CWB targeting people, but (...) not to CWB targeting the organization. Implications for research on CWB and guanxi with supervisor are discussed. (shrink)

Two types of guanxi have a close association with auditor independence in China: firm-level connections derived from state ownership and personal connections developed through management affiliations with external auditors. This article examines the effects of these two types of connection and their joint effect on audit quality. We find that state ownership and management affiliations with the external auditor both increase the probability of receiving a clean audit opinion in China. Furthermore, the probability increment brought by management affiliations for (...) non-state-owned enterprises (NSOEs) is greater than that for state-owned enterprises (SOEs). These results suggest that state ownership and management affiliations are two important types of connection that impair auditor independence, and that management affiliations are of greater importance to private-sector firms than to SOEs. (shrink)

In this study, we attempt to explain the divergent results found in the relationships between supervisor–subordinate guanxi and employee work outcomes. Specifically, we propose that the relationships between supervisor–subordinate guanxi and participatory management, turnover intentions, and organizational commitment are mediated by job satisfaction. Based on the data collected from a sample of 196 employees of three local manufacturing firms in Zhejiang Province, China, we found that job satisfaction fully mediated the effects of supervisor–subordinate guanxi on participatory management (...) and intentions to leave, but partially mediated the relationship between supervisor–subordinate guanxi and organizational commitment. Theoretical and practical implications are discussed. (shrink)

Research on guanxi is conducted principally within the disciplines of anthropology, business studies and sociology. It typically takes the form of empirical case studies, applications of extrinsic theory and literature reviews cum trend reports. The present paper, on the other hand, provides an analysis of guanxi in consideration of its elemental relations, components and properties. Discussion indicates the limitations of treatments of guanxi in terms of trust, guanxi bases, tie-strength and the conveyance of influence and information. (...) Having established the characteristic features of guanxi discussion then turns to how it may be an option or choice of commitment for persons and groups in contemporary China, its form and role in marketized exchanges, and how the efficiency of guanxi may be characterized. (shrink)

Despite the growing number of studies on the topic of guanxi in a work context, there is a paucity of research on supervisor-subordinate guanxi in the field of organisation and management. This article critically reviews the extant literature on guanxi in human resource management and organisational behaviour and applies an inductive approach to explore the perception of guanxi from both superior and subordinate perspectives in the People's Republic of China. The study reports positive and ethical features (...) of guanxi as well as unethical and negative practices in the Chinese workplace. On the positive side, guanxi comprises reciprocal exchange and perceived positive attributes, whereas its darker aspects include perceived unfairness and supervisor-targeted impression management. Managerial and research implications are discussed. (shrink)

Despite the prevalent role of guanxi in conducting business in Chinese, it is unclear whether interpersonal guanxi fosters interfirm trust. Taking a contingency approach, this study examines how institutional (government–market relationship and Buddhism influence) and individual (relative role performance and the span of partner control) factors moderate the association between interpersonal guanxi and interfirm trust. Based on a paired survey between salespersons and sales managers and two secondary datasets, this study finds that interpersonal guanxi is positively (...) associated with interfirm trust. Moreover, this positive effect is stronger when firms operate in regions with strong government–market relationships and strong Buddhism influence. In addition, the positive relationship is weaker when guanxi resides in boundary spanners who have relatively high role performance, but becomes stronger when boundary spanners have a broad span of partner control. These findings highlight the situations in which guanxi at an interpersonal level is more or less likely to foster interfirm trust. (shrink)

Despite the prevalent role of guanxi in conducting business in Chinese, it is unclear whether interpersonal guanxi fosters interfirm trust. Taking a contingency approach, this study examines how institutional and individual factors moderate the association between interpersonal guanxi and interfirm trust. Based on a paired survey between salespersons and sales managers and two secondary datasets, this study finds that interpersonal guanxi is positively associated with interfirm trust. Moreover, this positive effect is stronger when firms operate in (...) regions with strong government–market relationships and strong Buddhism influence. In addition, the positive relationship is weaker when guanxi resides in boundary spanners who have relatively high role performance, but becomes stronger when boundary spanners have a broad span of partner control. These findings highlight the situations in which guanxi at an interpersonal level is more or less likely to foster interfirm trust. (shrink)

We present two studies that examine the effects of guanxi on multiple social groups from the perspective of Chinese business people. Study 1 (N = 203) tests the difference in perceived effects of six guanxi contextualizations. Study 2 (N = 195) examines the duality of guanxi as either helpful or harmful to social groups, depending on the contextualization. Findings suggest guanxi may result in positive as well as negative outcomes for focal actors and the aggregate.

PurposeThe purpose of this paper is to reveal the underlying mechanisms that drive young adults’ participation in micro-charity.Design/methodology/approachA case study, which formed a large online ethnographic project, was conducted in which the twin methods of participatory observation and in-depth interviews were used to access the experience of a selected group (n= 60) of college students.FindingsThe present paper identifies that young adults’ participation in micro-charity is mainly driven by three underlying mechanisms: the formation of a powerful environment for the distribution of (...) awareness of obligation, creation of trust towards others in distant or weak ties and symbolic construction of collective identity with a shared commitment.Originality/valueThis paper is an exploratory work which sheds new light on charity or other social entrepreneurship development in the social media era. Specifically, the connectivity of social media and the pre-existing relationships may work well together and lead to many positive outputs, including distributing awareness of social obligation, instilling social trust and strengthening social coherence. (shrink)

Studies of human resource and crosscultural management are gaining greater attention in international markets. In response to this trend, for multinational enterprises, understanding of the culture and values of other countries as well as their organizational citizenship behavior (OCB), which focuses on members' positive interactions for better achievements in organization, has gained importance. This study aims to explore the effects of national culture and guanxi on the OCB in Chinese society including mainland China and Taiwan. The results reveal that (...) national culture and guanxi have significant impacts on the OCB, and people in mainland China and Taiwan have different cultures and OCB of their own. (shrink)

This paper examines dispositional sources of workplace guanxi and the mediating role of workplace guanxi on the affectivity and job satisfaction relationship. Data were collected from 808 respondents in multiple industries in a city in China’s northeast. The study found that both positive affectivity and negative affectivity have an effect on supervisor–subordinate guanxi and co-worker guanxi, which supports the proposition that workplace guanxi has a dispositional source. Supervisor–subordinate guanxi has a positive relationship with job (...) satisfaction, although co-worker guanxi is not significantly related to job satisfaction. The research also found a mediating role of supervisor–subordinate guanxi on the affectivity and job satisfaction relationship, which suggests that supervisor–subordinate guanxi can extend the influence of affectivity to job satisfaction. Taken together, these results suggest that in a high power distance country such as China, supervisor–subordinate guanxi plays a more important role than co-worker guanxi in influencing job satisfaction. Theoretically, this study suggests the as yet unexplored possibility of dispositional antecedents of workplace guanxi and the role of workplace guanxi on the relationship between dispositions and workplace attitudes such as job satisfaction. (shrink)

WeChat is not only a mobile application with many innovative features but is also representative of China’s electronic revolution. It is compatible with more than 90% of smart phones and has become an indispensable tool for daily use. People are captivated by various types of WeChat voting and canvassing activities, but little research has investigated whether such voting is based on guanxi or justice. Are people truly willing to vote on WeChat? Is WeChat voting an effective means of acquaintance (...) marketing? In this research, three studies were conducted. First, 656 respondents were surveyed, and the results showed that more than 90% of WeChat users have participated in WeChat voting and that their voting behaviour is based on guanxi. Second, an online questionnaire was administered to 731 subjects, and the results were statistically analysed to determine whether voting behaviour is motivated by guanxi or by justice. The results showed that people’s behaviour deviates from their intention. Third, 676 subjects were investigated, and logistic regression was used to model and analyse the characteristics of voting participants. The many interesting findings reveal that men show more ‘empathy’ than women and that men are more likely to vote on WeChat based on reciprocity and intimacy. In addition, older people emphasize emotion, whereas students are more interested in fostering connections for the future. Inappropriate WeChat voting behaviour does not facilitate promotional marketing, damages the reputation of the company and reduces customer loyalty. These findings provide theoretical, methodological, and practical contributions to strategies for effective acquaintance marketing. (shrink)

Despite the growing number of studies on the topic of guanxi in a work context, there is a paucity of research on supervisor-subordinate guanxi in the field of organisation and management. This article critically reviews the extant literature on guanxi in human resource management and organisational behaviour and applies an inductive approach to explore the perception of guanxi from both superior and subordinate perspectives in the People's Republic of China. The study reports positive and ethical features (...) of guanxi as well as unethical and negative practices in the Chinese workplace. On the positive side, guanxi comprises reciprocal exchange and perceived positive attributes, whereas its darker aspects include perceived unfairness and supervisor-targeted impression management. Managerial and research implications are discussed. (shrink)

We examine the use of Confucian relational morality as an alternative reference point to that of modernist morality in judging workplace ethical conduct. A semi-structured interview based study involving 46 ethnic Chinese managers and 30 non-Chinese expatriate managers in Singapore, provided evidence of the use of traditional guanxi-linked morality as a moral resource by some of the former group in judging workplace ethical dilemmas. While such morality played only a minor role in moral reasoning, and was largely overshadowed by (...) modernist morality, the research nonetheless demonstrates that moral reasoning reflects wider cultural heritage, and is not merely a function of corporate culture and individual moral development. (shrink)

One of the hot research topics today is relationship marketing. However, little research has been carried out in understanding the complex concepts of Guanxi (relationship) in a Chinese society. This research describes a study to operate the constructs of guanxi and explores the importance of guanxi in relationship development in order to present a new Guanxi framework. A study of both Western and Chinese literature provides foundations of the Guanxi perspectives. The constructs of adaptation, trust, (...) opportunism and favour are identified. Adaptation and trust are found to be positively correlated with sales stability and quality. Whilst, adaptation is negatively correlated with relationship termination costs. Both theoretical framework (a new perceptual map) and managerial implications are given. In addition, recommendations for future research are made. (shrink)

The leader–member relationship has been identified as a key determinant of successful working relationships and business outcomes in China. A high-quality leader–member relationship helps managers and employees to meet the demands they face and gives them the opportunity to develop socially, emotionally and morally. Such relationships form the basis of the overall well-being and success of the organisation. This article contributes to relationally oriented leadership theories and more specifically to the leader–member exchange theory by examining the theory in the context (...) of Western expatriate managers and Chinese employees in China. The first aim of the study is to analyse the similarities and differences between the LMX theory, which owes its origins to Western corporate experience, and the social and moral norms of guanxi, a crucial element in the Chinese value system. Since Westerners and Chinese people can give different interpretations to guanxi, the second aim of the article is to discuss the ethical challenges to the Western manager arising from guanxi. The findings of this study have implications not only for China, but also for other Chinese communities where guanxi is endorsed and practised. (shrink)

A cross sectional study of a sample of Australian accounting students during 2011 is used to test whether the relationship concept of guanxi is accepted as a social networking concept across cultures. While favour-seeking guanxi appears to be equally important across cultural groups (as a universal set of values), its negative variant, rent-seeking guanxi continues to be sanctioned to a greater extent by students holding temporary visas from Mainland China. Contrary to the findings of Fan, Woodbine, and (...) Scully (2012) involving Chinese auditors, this study of Australian and Chinese students did not identify favour-seeking guanxi as a factor influencing ethical judgment, whereas rent-seeking guanxi was strongly significant as a predictor of judgment making for Australian students. Major concerns are expressed about the need to sensitize Chinese students to make them more aware of unethical practices prevalent in their home country. These findings have significant implications for educators delivering ethics courses to cohorts that include international students as well as the professional bodies involved in designing development programs. (shrink)

A cross sectional study of a sample of Australian accounting students during 2011 is used to test whether the relationship concept of guanxi is accepted as a social networking concept across cultures. While favour-seeking guanxi appears to be equally important across cultural groups (as a universal set of values), its negative variant, rent-seeking guanxi continues to be sanctioned to a greater extent by students holding temporary visas from Mainland China. Contrary to the findings of Fan, Woodbine, and (...) Scully (2012) involving Chinese auditors, this study of Australian and Chinese students did not identify favour-seeking guanxi as a factor influencing ethical judgment, whereas rent-seeking guanxi was strongly significant as a predictor of judgment making for Australian students. Major concerns are expressed about the need to sensitize Chinese students to make them more aware of unethical practices prevalent in their home country. These findings have significant implications for educators delivering ethics courses to cohorts that include international students as well as the professional bodies involved in designing development programs. (shrink)

The importance of personal connections and relationships, or guanxi when doing business with the Chinese is widely acknowledged amongst Western academics and business managers alike. However, aspects of guanxi-rehted behaviours in the workplace are often misunderstood by Westerners with some going so far as to equate guanxi with forms of corruption. This study extends earlier study of Tan and Snell: 2002, Journal of Business Ethics 41 (December), 361-384) in its investigation of the underlying modes of moral reasoning (...) in ethical decisions relating to aspects of guanxi, amongst Hong Kong managers. Managers' ethical judgements and underlying moral reasoning relating to a series of guanxi related behaviours were recorded. Content analysis yielded categories that correspond with categories of moral reasoning described in Kohlberg's (1969, Handbook of Socialization Theory and Research, Rand McNally, Chicago, pp. 347-480) model. As hypothesised, it was found that harsher ethical evaluations of guanxi-vehted behaviours were positively correlated with the stage of moral reasoning. The most common types of reasoning were those corresponding to Kohlberg's stages four and five which relate to moral reasoning based on law and order, and on reason rather than emotion. Stage 6, concerned with more universalistic approaches to moral reasoning, was utilised considerably less, consistent with popularly held beliefs of the relativistic nature of Chinese ethics. (shrink)

In the People’s Republic of China (PRC), we investigated the relationships between supervisor–subordinate guanxi and trust in supervisor in firms with different types of ownership from both supervisor and subordinate’s sides. Utilising a qualitative approach, the findings of this study showed there was a direct relationship of superior–subordinate guanxi on trust in supervisor. The findings were discussed in the theoretical context of—social exchange theory, social identity theory and the theory of reasoned action as the theoretical foundations on the (...) relationships between superior–subordinate guanxi and trust in supervisor. (shrink)

Prior research on citizenship behavior has mainly focused on its voluntary side—organizational citizenship behavior. Unfortunately, although compulsory behavior is a global organizational phenomenon, the involuntary side of CB—compulsory citizenship behavior, defined as employees’ involuntary engagement in extra-role work activities that are beneficial to the organization : 77–93, 2006)—has long been neglected and very little is known about its potential negative consequences. Particularly, research on CCB–counterproductive work behavior association is still in its nascent stage. Therefore, drawing on moral disengagement theory and (...) social exchange theory, we firstly attempt to systematically investigate how and when CCB leads to CWB. Specifically, we see employee silence as a critical form of passive CWB and propose a moderated mediation model. In the model, CCB predicts silence through MD—a set of cognitive mechanisms that deactivate moral self-regulatory processes, with the Chinese culture-specific concept of supervisor–subordinate guanxi, which captures the supervisor–subordinate non-work-related personal ties, acting as the contextual condition. Two-wave data collected from a sample of 293 employees in 17 manufacturing firms in China supported our hypotheses. The results revealed that the more employees experienced compulsory feelings caused by CCB, the more they morally disengaged and, in turn, resorted to avoidant or passive responses as a coping strategy. Further, s–s guanxi serves as a reverse moderator in that high s–s guanxi mitigates the destructive impact of CCB, makes employees less inclined to morally disengage, and thereby largely prevents them from practicing workplace silence behavior. Implications for theory and intervention strategies for practice are discussed. We also propose several promising avenues for future research. (shrink)

Guanxi is perceived as a major determinant for successful business in China. This research paper investigates the importance of Guanxi from the Hong Kong Businessmen's viewpoint. It confirms previous findings in this area and adds on new dimensions. Therefore, practitioners and academics may further refine their knowledge in this subject.

Research in school success in contemporary China has argued that market reforms have reproduced the advantages for children from the cadre and the professional families while simultaneously creating new opportunities for children of the new arising economic elites. However, it has performed less for traditional peasant families. This book places a special emphasis on how rural parents from different social backgrounds use _guanxi_ to maintain the interconnectedness between their families and schools to create advantages for their children in school success. (...) It investigates, by an ethnographic study in a rural county in middle China, how families from different social backgrounds within rural society get involved in the schooling of their children and how this contributes to different patterns of school success. The book argues that schools provide few formal and routine channels for rural parents to become involved in their children’s schooling. This raises the importance of family strategic initiatives to employ _guanxi_ in the creation of advantages for their children’s school success. It concludes with discussions about _guanxi_ as an important mechanism for social exclusion in post-socialist China. Chapters include: Family Strategies, Parental Involvement, and School Success The Roles of Parents: Voices of Parents in Zong Regarding School Involvement Policy Discourses: Missing the Link between Family and School Peasants: Family and Kinship The Blurring Division between Home and School This concise and comprehensive book is a qualitative study that will appeal to researchers and advance students in Chinese education and society. (shrink)

This study constructs a mechanism of the influence of Guanxi between boundary spanners on opportunistic behaviors in collaborative innovation projects based on the theory of reasoned action model. The study conducts a survey in the automobile industry in Changchun, Jilin Province, China, and analyzes the research data using the structural equation model. The findings show that Guanxi has a negative an significant influence on opportunistic behavior attitudes and subjective norms., Guanxi has the greater influence on subjective norms (...) than attitudes. Then, opportunistic behavior attitudes and subjective norms positively influence intentions. The influence of subjective norms is stronger. The attitudes and subjective norms of opportunistic behaviors also play mediation roles. Furthermore, opportunistic behavior intentions have a positive and significant influence on behaviors. In short, the study’s findings reveal a mechanism of Guanxi between boundary spanners influencing opportunistic behaviors of boundary spanners. It also provides a reference for corporate managers to govern opportunistic behaviors of collaborator while inhabiting opportunistic behaviors of their own boundary spanners. (shrink)

Despite the opening of the market and partial privatization of state‐owned companies in China, the state still represents the controlling shareholder in larger companies. By analyzing the weaknesses of Chinese corporate governance we illustrate the framework for harmful corruption. China is characterized by a weak legal system and strong influences of traditions such as guanxi. In this article we analyze the influence of guanxi on the Chinese corporate governance system. We find that guanxi is in general a (...) double‐edged sword, but business‐to‐government guanxi in particular can harm the weak Chinese corporate governance system and hamper its further economic development and growth. (shrink)

This research explores the harmful effects of negative workplace gossip (NWG) on targets and organizations, including its impacts on helping behavior and knowledge hiding. The mediating role of guanxi closeness and the moderating role of need for affiliation are also examined. The study, based on conservation of resources theory, collected data from 526 employees in the hospitality industry in China, using a three-wave survey design. Hierarchical multiple regression analysis was employed to test the hypotheses. The empirical results showed that (...) NWG was a strong predictor of reduced helping behavior and increased knowledge hiding; and that guanxi closeness mediated both the negative relationship between NWG and helping behavior, and the positive relationship between NWG and knowledge hiding. Additionally, need for affiliation was shown to act as a moderator between NWG and guanxi closeness: high need for affiliation amplified the negative impact of NWG on guanxi closeness, and then further affected employees’ helping behavior and knowledge hiding. This study therefore offers an important new perspective for interpreting the detrimental effects of negative gossip in organizations, providing not just theoretical advances but practical ways in which managers can proactively reduce these impacts. (shrink)

Philosophers, on the theoretical level, as well as foreign investors and business executives, on the practical level, can no longer avoid dealing with the moral reasoning and ethical dilemmas associated with guanxi. Accordingly, this paper attempts to discuss guanxi as one of the most challenging ethical issues facing foreign firms in China today. While guanxi is a cultural value acceptable in the Chinese market, its abuse can lead to unethical practices,such as dishonesty, bribery, and big-time corruption. Based (...) on the methodology of applying critical reviews and meta-analysis of selected Asian studies published between 1999 and 2005, the author’s intent is to clarify issues surrounding guanxi using its potential abuse and ethico-moral consequences as points of departure in pursuing a discussion on global ethics. (shrink)

This paper explores expatriates’ ethical evaluations of and responses to guanxi in China through the lens of integrative social contracts theory. We conducted in-depth interviews with 14 expatriate managers who had spent, on average, 6.5 years working and living in China. Based on the content analysis of these interviews, we identified two different uses of guanxi: defensive and competitive. In general, the respondents found defensive guanxi moral in the Chinese context, while they considered competitive guanxi immoral. (...) Based on our findings, we identified fair competition as the substantive hypernorm that governed most respondents’ ethical evaluations of guanxi. The study has implications for all scholars who seek to utilize integrative social contracts theory to study the relationship between informal networks and corruption in developing countries. (shrink)