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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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01 Jan 1969

985 citations

Journal ArticleDOI
TL;DR: In this paper, a three-stage model of guanxi development is proposed to stimulate systematic research in this area, and a conceptual and theoretical discussion of Guanxi bases, objectives, and operating principles at different stages of the development process are discussed.
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.

924 citations

Journal ArticleDOI
TL;DR: In this paper, the authors suggest ways for companies to protect their guanxi and make this important aspect of Chinese management more understandable to westerners and its use by western managers enhanced and encouraged.
Abstract: Executive Overview Guanxi means good connections. Although guanxi is often said to be the source of sustained competitive advantage for foreign companies doing business in China, there is little theoretical basis for this view. What is known is that guanxi has to be valuable, rare, and imperfectly imitable before it can lead to a sustained advantage. Even if a certain advantage is gained, it can be difficult to sustain, because guanxi can be disrupted by something as simple as staff mobility. By suggesting ways for companies to protect their guanxi, it is hoped that this important aspect of Chinese management may be made more understandable to westerners and its use by western managers enhanced and encouraged.

788 citations

Journal ArticleDOI
TL;DR: The actor-status epistemic linkage is thus logically isomorphic with the in-icator-concept epistemic correlation as discussed by the authors, and the well developed statistics of multiple indicator structural equation models (e.g. Bielby & Hauser 1 977) can be used to test hypotheses regarding the status /role set duality.
Abstract: relational pattern translated into relations between actors. This means that all abstract models of social structure are quantitatively linked to observed relations. Models abstracting role-sets among statuses from observed relations among actors are at all times subject to empirical test as descriptions of observed relational patterns. 2. Analysis of network and covariance structures merges in a natural and' useful manner. Actors jointly occupying a status provide inter­ changeable representations of the role-set defining the status and accord­ ingly provide interchangeable indicators of distance to the status. The actor-status epistemic linkage is thus logically isomorphic with the in­ dicator-concept epistemic correlation. As a result of this isomorphism, the well developed statistics of multiple indicator structural equation models (e.g. Bielby & Hauser 1 977) can be used to test hypotheses regarding the status /role-set duality. Used in equations 1 5 and 16 to test structural equivalence as a statistical hypothesis, this isomorphism is also 29In contrast to Lewin's ( 1936) discussion of a psychological topology as interrelated sets of perceptions, a social topology refers to relational patterns in a system. An argument can be made for synthesizing the two via symbolic interaction and ethnomethodology since perceptions are intimately connected to relational patterns (e.g. Burt 1 980b); however, it is difficult to match psychological with social topologies since the latter are stated with considerably more rigor than the former.

734 citations

Book
01 Jan 1926
TL;DR: Malinowski's Crime and Custom in Savage Society as discussed by the authors describes and analyzes the ways in which Trobriand Islanders structure and maintain the social and economic order of their tribe.
Abstract: Bronislaw Malinowski achieved international recognition as the founder of "functionalism" in social anthropology, based on his studies of Melanesian society on the Trobriand Islands off New Guinea. His Crime and Custom in Savage Society is now one of the classic works of modern anthropology. In his book, Malinowski describes and analyzes the ways in which Trobriand Islanders structure and maintain the social and economic order of their tribe. This is essential reading for anyone interested in anthropology.

667 citations