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Guanxi, Networks and Economic Development: The Impact of Cultural Connections

TL;DR: In this article, the authors explore the mechanics of guanxi in an organizational setting, focusing on the use of interpersonal relationships within Chinese firms to discover how firms initiate, build and use Guanxi networks.
Abstract: The purpose of this study is to explore the mechanics of guanxi in an organizational setting, focusing on the use of interpersonal relationships within Chinese firms to discover how firms initiate, build and use guanxi networks. Two richly detailed case studies document changes that take place over time in two distinct networks with respect to key actors and their contacts. This research also investigates patterns of social structure that emerge over time in these two distinct cases looking at brokerage relationships, network density, and dyadic redundancy in three waves at six month intervals. The cases are dissimilar in all aspects except absolute size demonstrating the universal use of guanxi across time, geographic location, specific industries, and firm experience. Dynamic network visualization is used to highlight the sequence and rate of activity in each network to identify salient changes. The findings show that firms seek to improve their organizational guanxi by improving existing employees’ guanxi quality within the firm and by recruiting new actors from outside the firm. Additionally, firms use organizational guanxi to expand their networks by forming cooperative partnerships with complementary organizations that enhance the attributes or potential of both organizations. And finally, firms initially exploit brokerage in organizational guanxi, then attempt to stabilize the network by fostering new ties to exclusive contacts.
Citations
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Journal ArticleDOI
TL;DR: The authors explored the history of early-modern and modern China, from the seventeenth century to the present, examining the rise and fall of China's last empire, the emergence of a modern nation-state, the sources and development of revolution, and the implications of complex social, political, cultural, and economic transformations in the People's Republic of China.
Abstract: This course explores the history of early-modern and modern China, from the seventeenth century to the present. We will examine the rise and fall of China’s last empire, the emergence of a modern nation-state, the sources and development of revolution, and the implications of complex social, political, cultural, and economic transformations in the People’s Republic of China. Course materials include scholarly monographs, a memoir, primary sources, and visual and material artifacts that offer diverse perspectives. We will meet twice a week for a combination of lectures, discussion, and viewing of visual texts.

339 citations

Book
01 Jan 1982
TL;DR: This paper analyzed Chinese commercial negotiating practices for two reasons: the first is to minimize future misunderstandings in such activities, and the second is to provide guidance for government-to-government negotiations.
Abstract: Abstract : This study analyzes Chinese commercial negotiating practices for two reasons. The first is to minimize future misunderstandings in such activities, and the second is to provide guidance for government-to-government negotiations. The research procedure used involved interviews with American businessmen and bankers with extensive experience in the China trade, and--in order to control for American cultural factors--interviews with comparable Japanese bankers and businessmen. What was learned from the experiences of businessmen is to value in government-to-government negotiations, even though there are substantial differences between commercial and diplomatic relationships. At present both Beijing and Washington seek a more cooperative and complementary relationship. (Author)

213 citations

Journal ArticleDOI
TL;DR: The rational choice approach to social behaviour rationality, egoism and social atomism models of the actor rationality, action and deliberation individualism, and social structure was proposed in this article.
Abstract: The rational choice approach to social behaviour rationality, egoism and social atomism models of the actor rationality, action and deliberation individualism and social structure.

154 citations

Book ChapterDOI
31 Jan 1930

51 citations

Journal ArticleDOI
TL;DR: A comprehensive critical examination of China's folk architectural forms is presented in this article, where the authors provide a study of the environmental, historical and social factors that influence housing forms for nearly a quarter of the world's population.
Abstract: A comprehensive critical examination of China's folk architectural forms. Together with its companion volume, \"China's Living Houses: Folk Beliefs, Symbols, and Household Ornamentation\", it provides a study of the environmental, historical and social factors that influence housing forms for nearly a quarter of the world's population. Both books draw on the author's 30 years of fieldwork and travel in China, as well as on published and unpublished material in many languages. The work begins by tracing the interest in Chinese vernacular buildings in the 20th century. Early chapters detail common and distinctive spatial components, including the interior and exterior modular spaces that are axiomatic components of most Chinese dwellings as well as conventional structural components and building materials that are common in Chinese construction. Later chapters examine representative housing types in the three broad cultural realms - northern, southern and western - into which China has been divided. Knapp completes his survey with an exploration of China's old dwellings in the context of the rapid economic and social changes that are destroying so many of them.

50 citations

References
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Book ChapterDOI
TL;DR: In this paper, a critical view of the culturalist explanation for Chinese business success and the inferred disparity between an idealized, static model of the three concepts and that of how guanxi and xinyong are dynamic concepts and how they actually play out in the reality of running a firm are discussed.
Abstract: This chapter focuses on personalism, elaborating on the three key elements—guanxi, xinyong, and personal control. It takes a critical view of the culturalist explanation for Chinese business success and the inferred disparity between an idealized, static model of the three concepts and that of how guanxi and xinyong are dynamic concepts and how they actually play out in the reality of running a firm. The chapter also makes a key distinction of guanxi bases as a necessary prerequisite but not equivalent to guanxi relations, in the process identifying six main guanxi bases—locality/dialect, fictive kinship, kinship, workplace, trade associations and social clubs, and friendship. It suggests that a multiplex of guanxi relations facilitates better business ties than singular strands. The chapter explores the difference between personal trust and systems trust. It stresses the need to consider institutional and environmental elements that may shape the organization of Chinese firms rather than just the organization per se.

306 citations

Book
01 Jan 1973
TL;DR: In this paper, the authors present a mathematical framework for the study of systems of social action using a purposive theoretical base based on game theory, microeconomic theory, statistical decision theory, and game theory.
Abstract: Philosophers, social scientists, and laymen have used two perspectives in analyzing social action. One sees man's action as the result of causal forces, and the other sees action as purposive and goal directed. Mathematical treatment of social action has shown this same dichotomy. Some models of behavior describe a causal process, in which there is no place for intention or purpose. Most stochastic models of behavior, whether individual or group, are like this. Another body of work, however, employs purpose, anticipation of some future state, and action designed to maximize the proximity to some goal. Classical microeconomic theory, statistical decision theory, and game theory exemplify this direction.This book examines these two directions of work, and makes original contributions to the second. An introductory chapter outlines these two bodies of work, and casts them in a common frame, to display their similarities and differences. Chapter 2 reviews at length recent work in stochastic processes that makes up the first body of work, which sees social action as the resultant of causal forces. The remaining chapters develop a mathematical framework for the study of systems of social action using a purposive theoretical base. These chapters are designed particularly to contribute to the study of collective decisions, a form of social action that has proved particularly challenging to theoretical analysis. First published in 1973, this became a significant work both in problem solving and in the future career of the author. It is of continuing importance to researchers and students interested in statistical analysis.

306 citations

Journal ArticleDOI
TL;DR: In this paper, the authors described and analyzed guanxi in the context of China's urban job allocation, and analyzed the role of guanxia in the development of private businesses in the cities during market reforms.
Abstract: There has been considerable documentation concerning the use of guanxi to acquire power, status and resources in Communist China. More recently, guanxi has been seen as a mechanism to explain status trans-mission from the older generation to the younger under state socialism, as a key factor in the development of private businesses in the cities during market reforms, and as an effective strategy for individuals to get ahead in a more open, market-like rural society. This article describes and analyses guanxi in the context of China's urban job allocation.

294 citations

Journal ArticleDOI
TL;DR: What people say about their communications bears no resemblance to their behavior and suggests that other forms of data gathering, based on questions which require that informants recall their behavior, may well be suspect.

294 citations