Chinese Guanxi: An Integrative Review and New Directions for Future Research

Abstract In this article we review research on Chinese guanxi and social networking in the past twenty years and identify the major perspectives, theories, and methodologies used in guanxi research at micro and macro levels. We summarize the main findings of over 200 journal articles on guanxi research in terms of its conceptual definitions and measurements, its antecedents and consequences, and its dynamics and processes. Furthermore, we identify the gaps between different levels of guanxi research and discuss future directions to advance our understanding of the complex and intricate guanxi phenomenon.

[1]  L. Felkins The Social Dilemmas , 2015 .

[2]  Xinchun Li,et al.  From Personal Relationship to Psychological Ownership: The Importance of Manager–Owner Relationship Closeness in Family Businesses , 2013, Management and Organization Review.

[3]  K. Shi,et al.  Favor in exchange for trust? The role of subordinates’ attribution of supervisory favors , 2013 .

[4]  M. Bond,et al.  Handbook of Chinese Organizational Behavior: Integrating Theory, Research and Practice , 2012 .

[5]  Chao C. Chen,et al.  Chinese Guanxi: The Good, the Bad and the Controversial , 2012 .

[6]  Yadong Luo,et al.  Guanxi and Organizational Performance: A Meta-Analysis , 2012, Management and Organization Review.

[7]  L. Jia,et al.  Chinese Context and Theoretical Contributions to Management and Organization Research: A Three-decade Review , 2012, Management and Organization Review.

[8]  Fei Song,et al.  Trust, Reciprocity, and Guanxi in China: An Experimental Investigation , 2007, Management and Organization Review.

[9]  R. Friedman,et al.  Examining the positive and negative effects of guanxi practices: A multi-level analysis of guanxi practices and procedural justice perceptions , 2011 .

[10]  P. Hom,et al.  Embedding social networks: How guanxi ties reinforce Chinese employees’ retention , 2011 .

[11]  Jar-Der Luo,et al.  Guanxi Revisited: An Exploratory Study of Familiar Ties in a Chinese Workplace , 2011, Management and Organization Review.

[12]  Stan Xiao Li,et al.  Where Do Social Ties Come From: Institutional Framework and Governmental Tie Distribution among Chinese Managers , 2011, Management and Organization Review.

[13]  P. Ellis,et al.  Social ties and international entrepreneurship: Opportunities and constraints affecting firm internationalization , 2011 .

[14]  Kevin Zheng Zhou,et al.  The Effects of business and Political Ties on Firm Performance: Evidence from China. , 2011 .

[15]  P. Allen Complexity and Management , 2011 .

[16]  Patricia J. Daugherty,et al.  MANAGING LOGISTICS OUTSOURCING RELATIONSHIPS: AN EMPIRICAL INVESTIGATION IN CHINA , 2010 .

[17]  J. Nolan The influence of western banks on corporate governance in China , 2010 .

[18]  Chun Guo,et al.  Guanxi Dynamics and Entrepreneurial Firm Creation and Development in China , 2010, Management and Organization Review.

[19]  Michael Harris Bond,et al.  Oxford Handbook of Chinese Psychology , 2010 .

[20]  S. Si,et al.  Can guanxi be a problem? Contexts, ties, and some unfavorable consequences of social capital in China , 2010 .

[21]  K. Redfern,et al.  Consideration of the Role of Guanxi in the Ethical Judgments of Chinese Managers , 2010 .

[22]  Hean Tat Keh,et al.  Interorganizational Exchanges in China: Organizational Forms and Governance Mechanisms , 2010, Management and Organization Review.

[23]  Sun-Ki Chai,et al.  Confucian Capitalism and the Paradox of Closure and Structural Holes in East Asian Firms , 2010, Management and Organization Review.

[24]  Chao-chuan Chen,et al.  Developments in understanding Chinese leadership: paternalism and its elaborations, moderations, and alternatives , 2010 .

[25]  Alex S. L. Tsang,et al.  Power, conflict, and cooperation: The impact of guanxi in Chinese marketing channels , 2010 .

[26]  R. Veliyath,et al.  Particularistic and System Trust Among Small and Medium Enterprises: A Comparative Study in China's Transition Economy , 2009 .

[27]  R. Friedman,et al.  Supervisor–Subordinate Guanxi: Developing a Three-Dimensional Model and Scale , 2009, Management and Organization Review.

[28]  Po-keung Ip,et al.  Is Confucianism Good for Business Ethics in China? , 2009 .

[29]  Wenyu Dou,et al.  Interpersonal influence as an alternative channel communication behavior in emerging markets: The case of China , 2009 .

[30]  M. M. Dawson The Ethics of Confucius , 2009 .

[31]  Yochanan Altman,et al.  Supervisor and Subordinate Guanxi: A Grounded Investigation in the People’s Republic of China , 2009 .

[32]  Kwok Kee Wei,et al.  Social relationship and its role in knowledge management systems usage , 2009, Inf. Manag..

[33]  Chao C. Chen,et al.  Negative externalities of close guanxi within organizations , 2009 .

[34]  Michael W. Morris,et al.  Guanxi vs networking: Distinctive configurations of affect- and cognition-based trust in the networks of Chinese vs American managers , 2009 .

[35]  Peter Ping Li,et al.  Toward a Geocentric Framework of Trust: An Application to Organizational Trust , 2008, Management and Organization Review.

[36]  Kineta H. Hung,et al.  When Does Guanxi Matter? Issues of Capitalization and Its Dark Sides: , 2008 .

[37]  Joel Podolny,et al.  Culture and Coworker Relations: Interpersonal Patterns in American, Chinese, German, and Spanish Divisions of a Global Retail Bank , 2008, Organ. Sci..

[38]  Lei Tao,et al.  Relationship stability, trust and relational risk in marketing channels: Evidence from China , 2008 .

[39]  Nailin Bu,et al.  Chinese managers' career success networks: the impact of key tie characteristics on structure and interaction practices , 2008 .

[40]  Raymond P. M. Chow,et al.  The effects of social capital and organizational innovativeness in different institutional contexts , 2008 .

[41]  Kai Xu,et al.  Managerial ties, absorptive capacity, and innovation , 2008 .

[42]  K. Zhou,et al.  Do managerial ties in China always produce value? Competition, uncertainty, and domestic vs. foreign firms , 2008 .

[43]  Yadong Luo,et al.  The changing Chinese culture and business behavior: The perspective of intertwinement between guanxi and corruption , 2008 .

[44]  Chris Provis,et al.  Guanxi and Conflicts of Interest , 2008 .

[45]  Xinchun Li,et al.  Managerial ties, firm resources, and performance of cluster firms , 2008 .

[46]  Siqing Peng,et al.  Guanxi Dynamics: Shifts in the Closeness of Ties Between Chinese Coworkers , 2008, Management and Organization Review.

[47]  Chin-Chun Hsu,et al.  Social ties and foreign market entry: An empirical inquiry , 2007 .

[48]  Paul W. Beamish,et al.  Building Theoretical and Empirical Bridges Across Levels: Multilevel Research in Management , 2007 .

[49]  Wei-ping Wu Dimensions of Social Capital and Firm Competitiveness Improvement: The Mediating Role of Information Sharing , 2007 .

[50]  Eric W.T. Ngai,et al.  A Model of Guanxi Development: Flexibility, Commitment and Capital Exchange , 2007 .

[51]  梁馨科,et al.  The Mediating Effects of Leader-member Exchange Quality to Influence the Relationships between Paternalistic Leadership and Organizational Citizenship Behaviors , 2007 .

[52]  Haiyang Li,et al.  The role of managers' political networking and functional experience in new venture performance: Evidence from China's transition economy , 2007 .

[53]  A. Tsui,et al.  When Brokers May Not Work: The Cultural Contingency of Social Capital in Chinese High-tech Firms , 2007 .

[54]  G. Lawrence Sanders,et al.  An empirical investigation of socio-cultural factors of information sharing in China , 2007, Inf. Manag..

[55]  Ronald K. Mitchell,et al.  Enabling Guanxi Management in China: A Hierarchical Stakeholder Model of Effective Guanxi , 2007 .

[56]  D. Tjosvold,et al.  Guanxi and leader member relationships between American managers and Chinese employees: open-minded dialogue as mediator , 2007 .

[57]  C. Wang Guanxi vs. relationship marketing: Exploring underlying differences , 2007 .

[58]  Dean Tjosvold,et al.  Participative Leadership by American and Chinese Managers in China: Role of Relationships , 2006 .

[59]  Nana Zhang Social networks and women’s rural-urban migration in contemporary China , 2006 .

[60]  P. Buckley,et al.  Cultural Awareness in Knowledge Transfer to China — The Role of Guanxi and Mianzi , 2006 .

[61]  Yi Zhang,et al.  Guanxi and organizational dynamics in China: a link between individual and organizational levels , 2006 .

[62]  Anne S. Tsui,et al.  The dynamics of guanxi in Chinese hightech firms: Implications for knowledge management and decision making , 2006 .

[63]  Samuel Aryee,et al.  Leader-member exchange in a Chinese context: Antecedents, the mediating role of psychological empowerment and outcomes , 2006 .

[64]  Christina Sue-Chan,et al.  The influence of relation-based and rule-based regulations on hiring decisions in the Australian and Hong Kong Chinese cultural contexts , 2006 .

[65]  A. Park,et al.  Reemployment of Dislocated Workers in Urban China: The Roles of Information and Incentives , 2006 .

[66]  D. Harrison,et al.  TIES, LEADERS, AND TIME IN TEAMS: STRONG INFERENCE ABOUT NETWORK STRUCTURE'S EFFECTS ON TEAM VIABILITY AND PERFORMANCE , 2006 .

[67]  Matthew C. H. Yeung,et al.  Is Guanxi (relationship) a bridge to knowledge transfer , 2006 .

[68]  David Weir,et al.  Guanxi and Wasta: A comparison , 2006 .

[69]  Eric W. K. Tsang,et al.  Cronyism: a cross-cultural analysis , 2006 .

[70]  Peter Moran Structural vs. relational embeddedness: social capital and managerial performance , 2005 .

[71]  Martin Francis Parnell,et al.  Chinese business guanxi: an organization or non-organization? , 2005 .

[72]  B. Uzzi,et al.  Collaboration and Creativity: The Small World Problem1 , 2005, American Journal of Sociology.

[73]  W. Powell,et al.  Network Dynamics and Field Evolution: The Growth of Interorganizational Collaboration in the Life Sciences1 , 2005, American Journal of Sociology.

[74]  Dai Hai-qun,et al.  On relationship marketing , 2005 .

[75]  Danielle E. Warren,et al.  Social Exchange in China: The Double-Edged Sword of Guanxi , 2004 .

[76]  David A. Griffith,et al.  The Effects of Customer Relationships and Social Capital on Firm Performance: A Chinese Business Illustration , 2004 .

[77]  Chao C. Chen,et al.  On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development , 2004 .

[78]  I. Chow,et al.  The Characteristics of Chinese Personal Ties (Guanxi): Evidence from Hong Kong , 2004 .

[79]  B. Cheng,et al.  Reward allocation decisions of Chinese managers: Influence of employee categorization and allocation context , 2004 .

[80]  Chao C. Chen,et al.  Special Issue on Corporate Transformation in the People's Republic of China: Guanxi Practices and Trust in Management: A Procedural Justice Perspective , 2004, Organ. Sci..

[81]  Yusheng Peng,et al.  Kinship Networks and Entrepreneurs in China’s Transitional Economy1 , 2004, American Journal of Sociology.

[82]  Joan V. Robinson,et al.  The Nature of the Firm , 2004 .

[83]  Yadong Luo Industrial dynamics and managerial networking in an emerging market: the case of China , 2003 .

[84]  Guo Li,et al.  Does guanxi matter to nonfarm employment , 2003 .

[85]  K. Praveen Parboteeah,et al.  Team-Level Antecedents of Individuals' Knowledge Networks , 2003, Decis. Sci..

[86]  Snejina Michailova,et al.  Personal Networking in Russia and China:: Blat and Guanxi , 2003 .

[87]  M. Joseph Sirgy,et al.  Is Guanxi Orientation Bad, Ethically Speaking? A Study of Chinese Enterprises , 2003 .

[88]  Xueguang Zhou,et al.  Embeddedness and Contractual Relationships in China's Transitional Economy , 2003, American Sociological Review.

[89]  Vivian C. Sheer,et al.  Successful Sino-Western Business Negotiation: Participants' Accounts of National and Professional Cultures , 2003 .

[90]  Laurent Lapierre,et al.  LMX and Organizational Citizenship Behavior: Examining the Links Within and Across Western and Chinese Samples , 2003 .

[91]  Chi-Sum Wong,et al.  Antecedents and Outcomes of Employees' Trust in Chinese Joint Ventures , 2003 .

[92]  Robin Stanley Snell,et al.  The Third Eye: Exploring Guanxi and Relational Morality in the Workplace , 2002 .

[93]  Ying Fan Questioning guanxi: definition, classification and implications , 2002 .

[94]  Ying Fan,et al.  Ganxi's Consequences: Personal Gains at Social Cost , 2002 .

[95]  P. Ellis,et al.  Social Ties and Partner Identification in Sino-Hong Kong International Joint Ventures , 2002 .

[96]  Mayfair Mei-Hui Yang,et al.  The Resilience of Guanxi and its New Deployments: A Critique of Some New Guanxi Scholarship , 2002, The China Quarterly.

[97]  B. Batjargal,et al.  Entrepreneurs' Access to Private Equity in China: The Role of Social Capital , 2002 .

[98]  L. Berry Relationship Marketing of Services Perspectives from 1983 and 2000 , 2002 .

[99]  D. Wank Social Connections in China: Business-State Clientelism in China: Decline or Evolution? , 2002 .

[100]  Doug Guthrie Social Connections in China: Information Asymmetries and the Problem of Perception: The Significance of Structural Position in Assessing the Importance of Guanxi in China , 2002 .

[101]  M. Nyaw,et al.  Mitigating liabilities of foreignness : defensive versus offensive approaches , 2002 .

[102]  Doug Guthrie,et al.  Social connections in China : institutions, culture, and the changing nature of Guanxi , 2002 .

[103]  James E. Littlefield,et al.  Entering Guanxi: A Business Ethical Dilemma in Mainland China? , 2001 .

[104]  Qihai Huang,et al.  Commodifying Communism: Business, Trust, and Politics in a Chinese City , 2001 .

[105]  Danielle E. Warren,et al.  Is Guanxi Ethical? A Normative Analysis of Doing Business in China , 2001 .

[106]  Yadong Luo,et al.  Antecedents and Consequences of Personal Attachment in Cross-Cultural Cooperative Ventures , 2001 .

[107]  Yadong Luo,et al.  Guanxi and organizational dynamics: organizational networking in Chinese firms , 2001 .

[108]  Rosalie L. Tung,et al.  Network capitalism: the role of human resources in penetrating the China market , 2001 .

[109]  Ralph Stacey,et al.  Complexity and Management , 2000 .

[110]  P. Ellis,et al.  Social Ties and Foreign Market Entry , 2000 .

[111]  Mike W. Peng,et al.  Managerial Ties and Firm Performance in a Transition Economy: The Nature of a Micro-Macro Link , 2000 .

[112]  Stephen S. Standifird,et al.  The transaction cost advantage of guanxi-based business practices , 2000 .

[113]  Kenneth S. Law,et al.  Effect of supervisor–subordinate guanxi on supervisory decisions in China: an empirical investigation , 2000 .

[114]  Anne S. Tsui,et al.  Management and organizations in the Chinese context , 2000 .

[115]  Carrie R. Leana,et al.  Relational wealth : the advantages of stability in a changing economy , 2000 .

[116]  P. Ellis,et al.  Insider-outsider perspectives of Guanxi , 2000 .

[117]  Alan C.B. Tse,et al.  Relationship marketing the Chinese way , 2000 .

[118]  Bor-Shiuan Cheng,et al.  A Cultural Analysis of Paternalistic Leadership in Chinese Organizations , 2000 .

[119]  Raja Kali,et al.  Guanxi Versus the Market: Ethics and Efficiency , 1999 .

[120]  R. Coff When Competitive Advantage Doesn't Lead to Performance: The Resource-Based View and Stakeholder Bargaining Power , 1999 .

[121]  Hui,et al.  A Structural Equation Model of the Effects of Negative Affectivity, Leader-Member Exchange, and Perceived Job Mobility on In-role and Extra-role Performance: A Chinese Case. , 1999, Organizational behavior and human decision processes.

[122]  Zhi-xue Zhang,et al.  Beyond Distributive Justice: The Reasonableness Norm in Chinese Reward Allocation , 1998 .

[123]  D. Guthrie,et al.  The Declining Significance of Guanxi in China's Economic Transition , 1998, The China Quarterly.

[124]  Eric W. K. Tsang Can guanxi be a source of sustained competitive advantage for doing business in China , 1998 .

[125]  Hsing You-tien,et al.  Making Capitalism in China: The Taiwan Connection , 1998 .

[126]  Bor-Shiuan Cheng,et al.  The Influence of Relational Demography and Guanxi : the Chinese Case , 1998 .

[127]  R. Liden,et al.  Multidimensionafity of Leader-Member Exchange: An Empirical Assessment through Scale Development , 1998 .

[128]  David Y. F. Ho,et al.  Interpersonal Relationships and Relationship Dominance: An Analysis Based on Methodological Relationism , 1998 .

[129]  Y. Bian Bringing strong ties back in: Indirect ties, network bridges, and job searches in China , 1997 .

[130]  Yadong Luo,et al.  Does Guanxi Influence Firm Performance? , 1997 .

[131]  Soon Ang,et al.  Guanxi Networks and Job Mobility in China and Singapore , 1997 .

[132]  Herminia Ibarra,et al.  Paving an alternative route : Gender differences in managerial networks , 1997 .

[133]  Yadong Luo,et al.  Guanxi and Performance of Foreign-invested Enterprises in China: An Empirical Inquiry , 1997 .

[134]  Yadong Luo,et al.  Guanxi: principles, philosophies, and implications , 1997 .

[135]  J. Pearce,et al.  Guanxi: Connections As Substitutes for Formal Institutional Support , 1996 .

[136]  M. Boisot,et al.  From Fiefs to Clans and Network Capitalism: Explaining China's Emerging Economic Order , 1996 .

[137]  Y. Wong,et al.  The benefits of “Guanxi”: The value of relationships in developing the Chinese market , 1995 .

[138]  G. Graen,et al.  Relationship-based approach to leadership: Development of leader-member exchange (LMX) theory of leadership over 25 years: Applying a multi-level multi-domain perspective , 1995 .

[139]  W. Frederick Competing with Integrity , 1995 .

[140]  Wang Zheng,et al.  From the Soil: The Foundations of Chinese Society (Xiangtu Zhongguo). , 1994 .

[141]  S. Hunt,et al.  The Commitment-Trust Theory of Relationship Marketing , 1994 .

[142]  L. Henderson On the Social System , 1993 .

[143]  A. Fiske The four elementary forms of sociality: framework for a unified theory of social relations. , 1992, Psychological review.

[144]  H. Ibarra Homophily and differential returns: Sex differences in network structure and access in an advertising firm. , 1992 .

[145]  Daniel J. Brass A social network perspective on human resources management , 1992 .

[146]  A. Tsui,et al.  Being different: Relational demography and organizational attachment. , 1991 .

[147]  J. Barney Firm Resources and Sustained Competitive Advantage , 1991 .

[148]  D. North Institutions, Institutional Change and Economic Performance: Economic performance , 1990 .

[149]  Gail T. Fairhurst,et al.  Social structure in leader‐member interaction , 1989 .

[150]  J. Alston,et al.  Wa, Guanxi, and Inhwa: Managerial principles in Japan, China, and Korea , 1989 .

[151]  D. M. Georgoff,et al.  Harvard Business Review: David M. Georgoff and Robert G. Murdick, manager's guide to forecasting, 64 (Jan-Feb.) (1986) 110-120 , 1988 .

[152]  F. Dwyer,et al.  Developing Buyer-Seller Relationships , 1987 .

[153]  K. Hwang Face and Favor: The Chinese Power Game , 1987, American Journal of Sociology.

[154]  Michael Harris Bond,et al.  The social psychology of Chinese people. , 1986 .

[155]  Michael Harris Bond,et al.  The Psychology of the Chinese people , 1986 .

[156]  N. Lin,et al.  Social structure and network analysis , 1985 .

[157]  G. Graen,et al.  Moderating effects of initial leader–member exchange status on the effects of a leadership intervention. , 1984 .

[158]  L. Berry,et al.  Emerging perspectives on services marketing , 1983 .

[159]  P. New,et al.  Social Interaction in Chinese Society , 1982 .

[160]  D. K. Jordan,et al.  Local Politics in a Rural Chinese Cultural Setting. , 1981 .

[161]  Robert N. Stern,et al.  The External Control of Organizations: A Resource Dependence Perspective. , 1979 .

[162]  Mark S. Granovetter The Strength of Weak Ties , 1973, American Journal of Sociology.

[163]  Goslin,et al.  Handbook of socialization theory and research , 1969 .

[164]  L. Kohlberg Stage and sequence: The cognitive-developmental approach to socialization , 1969 .

[165]  O. D. Duncan,et al.  The American Occupational Structure , 1967 .

[166]  P. Blau Exchange and Power in Social Life , 1964 .

[167]  F. Hsu Clan, Caste and Club , 1963 .

[168]  G. C. Homans,et al.  Social Behavior as Exchange , 1958, American Journal of Sociology.

[169]  W. Powell,et al.  The iron cage revisited institutional isomorphism and collective rationality in organizational fields , 1983 .