Guanxiand its role in business

Abstract

Abstract Purpose – Guanxi is believed to be a striking feature that helps to enter a profitable and growing Chinese market. Though many have guanxi well‐defined and classified, the core value undermined within the Confucianism that constructs guanxi networks, the mechanism of how guanxi works, and the factors that make them sustainable and durable in Chinese societies have rarely been discussed thoroughly. From the socio‐cultural view, this study seeks to examine guanxi and its role in business. Design/methodology/approach – The paper used a combination of qualitative research approaches, namely interviews, and questionnaire for survey. The quantitative research approaches was also chosen to test and discuss for the results consistency. Findings – The result suggests guanxi, the unique cultural character of Chinese, does not simply connect the social networks; it also plays the role in setting the rules in doing business in Chinese society. Research limitations/implications – This paper provides an inner view which offers insights that should prove helpful to academics in management and related disciplines as well as to practitioners engaged in Chinese business. Originality/value – Monitoring the mechanism of Chinese social‐culture and gaining an understanding of how guanxi plays as the internal and external factors in business.

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