Abstract
The cultural perspective and institutional perspective on guanxi were combined to construct a theoretical framework for analyzing guanxi practices in five types of business organizations in Chinese society, namely, patrilinealism, patriarchicalism, market despotism, paternalism, and monopoly. Those five types of organizations were classified along with a combination of three dichotomous dimensions. Based on the premise that guanxi practices are used to establish interpersonal trust, a conceptual framework was proposed to explain the features and domains for five prototypes of trust in Chinese society, and researches on guanxi practices between organizations were discussed with a special concern about its negative connotations. Various patterns of guanxi practices within organizations were analyzed to explain the organizational culture and leadership in Chinese businesses. The theoretical frameworks provided in this chapter may clarify several crucial issues related to the guanxi usage in Chinese society.
This is a preview of subscription content, log in via an institution.
Buying options
Tax calculation will be finalised at checkout
Purchases are for personal use only
Learn about institutional subscriptionsReferences
Ackers, P. (1998). On paternalism: Seven observations on the uses and abuses of the concept in industrial relations, past and present. Historical Studies in Industrial Relations, 5, 179–193.
Baran, P. A., & Sweezy, P. M. (1966). Monopoly capital. New York: Monthly Review Press.
Bian, Y. (1997). Bringing strong ties back in: Indirect ties, network bridges, and job searches in China. Am Sociol Rev, 62, 366–385.
Bian, Y. (1999). Getting a job through a web of guanxi in China. In W. Barry (Ed.), Neworks in the global village (pp. 225–253). Boulder, CO: Westview Press.
Bian, Y. (2002). Institutional holes and job mobility processes: Guanxi mechanisms in China’s emergent labor markets. In T. Thomas, G. Doug, & D. Wank (Eds.), Social connections in China: Institutions, culture, and the changing nature of guanxi (pp. 117–136). Cambridge, UK: Cambridge University Press.
Blau, P. M. (1986). Exchange and power in social life. New Brunswick, NJ: Transaction Publishers.
Burawoy, M. (1985). The politics of production: Factory regimes under capitalism and socialism. London: Verso.
Chen, J. X. (1994). Inter-organizational cooperative network and life structure: Socio-economic analysis of mediun and small scale business in Taiwan. Taipei: Lian-Jing.
Chen, C. C., Chen, Y. R., & Xin, K. (2004). Guanxi practices and trust in management: A procedural justice perspective. Organization Science, 15, 200–209.
Chen, C. N., & Chiu, S. R. (1984). Basic patterns of business organization and traditional family system: A comparative study of Chinese, Japanese and Western societies. In K. S. Yang, K. K. Hwang, & J. R. Chuang (Eds.), Chinese management (in Chinese) (pp. 459–484). Taipei: China Time.
Chen, Y. F., & Tjosvold, D. (2006). Participative leadership by American and Chinese managers in China: The role of relationships. Journal of Management Studies, 43, 1727–1752.
Cheng, B. S. (1995). Hierarchical order and Chinese organizational behavior (in Chinese). Indigenous psychological research, 3, 142–219.
Cheng, W. Y. (2003). Traditional solidarity, market and the specialties and generalities of the employer-employee relations in the East Asian firms (in Chinese). Bulletin of Labour Research, 13, 1–37.
Cheng, B. S., Farh, J. L., Chang, H. F., & Hsu, W. L. (2002). Guanxi, zhongcheng, competence and managerial behavior in the Chinese context. Chinese Journal of Psychology, 44, 151–166.
Cheng, B. S., & Lin, C. W. (1998). Differential Model of the Association and Chinese organizational behavior: An Exploratory Study of Taiwan Large-Scale Enterprise (in Chinese). Bulletin of the Institute of Ethnology, Academia Sinica, 86, 29–72.
Chou, L. F., Cheng, B. S., Huang, M. P., & Cheng, H. Y. (2006). Guanxi networks and members’ effectiveness in Chinese work teams: Mediating effects of trust networks. Asian Journal of Social Psychology, 9, 79–95.
Chow, I. H. S., & Ng, I. (2004). The characteristics of Chinese personal ties (Guanxi): Evidence from Hong Kong. Organization Studies, 25, 1075–1093.
Deyo, F. C. (1989). Beneath the miracle: Labor subordination in the new Asian industrialism. Berkeley, CA: University of California Press.
Edwards, R. (1979). Contested terrain: The transformation of workplace in the twentieth century. New York: Basic Books.
Farh, J. L., Tsui, A. S., Xin, K., & Cheng, B. S. (1998). The influence of relational demography and guanxi: The Chinese case. Organization Science, 9, 471–488.
Foucault, M. (1970). The order of things: An archaeology of the human sciences (A. Sheridan-Smith, Trans.). New York: Random House.
Gold, T., Guthrie, D., & Wank, D. (2002). An introduction to the study of guanxi. In T. Thomas, G. Doug, & D. Wank (Eds.), Social connections in China: Institutions, culture, and the changing nature of guanxi (pp. 3–20). Cambridge, UK: Cambridge University Press.
Greenhalgh, L. Lawrence, A. T. & Sutton, R. (1988). Determinants of work force reduction strategies in declining organizations. The Academy of Management Review, 13(2), 241–254.
Guthrie, D. (1998). The declining significance of guanxi in China’s economic transition. The China Quarterly, 154, 254–282.
Guthrie, D. (1999). Dragon in a three-piece suit: The emergence of capitalism in China. Princeton, NJ: Princeton University Press.
Guthrie, D. (2002). Information asymmetries and the problem of perception: The significance of structural position in assessing the importance of guanxi in China. In T. Thomas, G. Doug, & D. Wank (Eds.), Social connections in China: Institutions, culture, and the changing nature of guanxi (pp. 37–56). Cambridge, UK: Cambridge University Press.
Hagen, J. M., & Choe, S. (1998). Trust in Japanese interfirm relations: Institutional sanctions matter. Acad Manage Rev, 23, 589–600.
Hamilton, G. G. (1996a). Organization and market processes in Taiwan’s capitalist economy. American Journal of Sociology, 96, 999–1006. Also in Orru, Baggart & Hamilton (Eds.) (1997), 237–293.
Hamilton, G. G. (1996b). The theoretical significance of Asian business networks. In G. G. Hamilton (Ed.), Asian business networks (pp. 283–298). Berlin: Walter de Gruyter.
Hamilton, G. G. & Biggart, N. W. (1998). Market, culture, and authority: a comparative analysis of management and organization in the Far East. The American Journal of Sociology, 94, S52–S94.
Hsieh, G. H. (1989). From labourer to boss: Social mobility in manufacturing industry of Taiwan. Quarterly of Social Rresearch in Taiwan, 2(2), 11–54.
Hsing, Y. T. (1998). Making capitalism in China: The Taiwan connection. New York: Oxford University Press.
Hu, H. H. (2007). A comparative study of effects of Taiwan-United States employee categorization on supervisor trust. Social Behavior and Personality, 35, 229–242.
Hu, H. H., Hsu, W. L., & Cheng, B. S. (2004). Reward allocation decisions of Chinese managers: Influence of employee categorization and allocation context. Asian Journal of Social Psychology, 7, 221–232.
Hui, C., & Graen, G. (1997). Guanxi and professional leadership in contemporary Sino-American joint ventures in mainland China. Leadership Quarterly, 8, 451–465.
Hwang, K. K. (1987). Face and favor: The Chinese power game. Am J Sociol, 92, 944–974.
Hwang, K. K. (1990). Modernization of the Chinese family business. International Journal of Psychology, 25(5, 6), 593–618. Also in H. S. R. Kao, D. Sinha, S.-H. Ng (Eds.), (1995). Effective Organizations and Social Values (pp. 37–62). New Delhi: Sage Publications.
Hwang, K. K. (1999). Filial piety and loyalty: Two types of social identification in Confucianism. Asian Journal of Social Psychology, 2, 163–183.
Hwang, K. K., Cheng, W. Y., & Lee, Y. T. (2007). Confucian relation and Chinese organizational culture. In Y. T. Lee, V. Calvez, & A. M. Guénette (Eds.), La Compétence culturelle: S’équipe pour les défis du management international (pp. 141–158). Paris: L’Harmattan.
King, A. Y. C. (1985). The individual and group in Confucianism: A relational perspective. In J. M. A. A. Donald (Ed.), Individualism and Holism: Studies in Confucian and Taoist Values (pp. 57–70). MI: Center for Chinese Studies, the University of Michigan.
Kiong, T. C., & Kee, Y. P. (1998). Guanxi bases, Xinyong and Chinese business networks. Br J Sociol, 49, 75–96.
Kipnis, A. (2002). Practices of guanxi production and practices of ganqing avoidance. In T. Thomas, G. Doug, & D. Wank (Eds.), Social connections in China: Institutions, culture, and the changing nature of guanxi (pp. 21–36). Cambridge, UK: Cambridge University Press.
Ko, C. M. (1993). The establishment, management and organization of small-scale manufacturing industry in urban Taiwan: A case of ready-made clothes (in Chinese). Taipei: Institute of Ethnology, Academia Sinica.
Lau, K. H., Tung, A. W., Lv, X. W., & Yi, J. (2005). The conceptualization of Chinese guanxi of Hong Kong university students by using multi-dimensional scaling: An empirical approach. Acta Psychologica Sinica, 37, 122–125.
Laudan, L. (1977). Progress and its problems: Toward a theory of scientific growth. New Dehli: Ambika Publications.
Leung, T. K. P., & Wong, Y. H. (2001). The ethics and positioning of guanxi in China. Marketing Intelligence and Planning, 19, 55–64.
Li, P. L., Jiang, X. X., & Zhang, Q. Z. (1992). Transition of Chinese state-enterprises. Jinan: Shangdong Press.
Lin, Y. M. (2002). Beyond dyadic social exchange: Guanxi and third-party effects. In T. Thomas, G. Doug, & D. Wank (Eds.), Social connections in China: Institutions, culture, and the changing nature of guanxi (pp. 57–76). Cambridge, UK: Cambridge University Press.
Lo, K. D. (2007). An empirical investigation of emic differences between American networking and Chinese guanxi and a process model of building relationships for cross-cultural business interactions. Dissertation Abstracts International Section A: Humanities and Social Science, 68, 2049.
Lovett, S., Simmons, L. C., & Kali, R. (1999). Guanxi versus the market: Ethics and efficiency. Journal of international Business Studies, 30, 231–247.
Nooteboom, B. H. (1997). Effects of trust and governance on relational risk. Acad Manage Rev, 40, 308–338.
Oi, J. (1989). State and peasant in contemporary China: The political economy of village government. Berkeley, CA: University of California Press.
Orru, M., Biggart, N. W., & Hamilton, G. G. (Eds.). (1997). The economic organization of East Asian capitalism. Thousand Oaks, CA: Sage.
Peng, S. Q. (2001). Guanxi-management and legal approaches to establish and enhance interpersonal trust. Journal of Psychology in Chinese Societies, 2, 51–76.
Pfeffer, J. (1983). Organizational demography. In L. L. Cummings & B. N. Staw (Eds.), Research in organizational behavior (Vol. 5, pp. 299–357). Greenwich, CT: JAI.
Potter, P. B. (1992). The economic contract law of China: Legitimation and contract autonomy in the PRC. Seattle and London: University of Washington Press.
Potter, P. B. (1999). The Chinese legal system: Continuing commitment to the primacy of state power. The China Quarterly, 159, 673–683.
Pye, L. W. (1968). The spirit of Chinese politics: A psychocultural study of the authority crisis in political development. Cambridge: MIT Press.
Ramasamy, B., Goh, K. W., & Yeung, M. C. H. (2006). Is guanxi (relationship) a bridge to knowledge transfer? Journal of Business Research, 59, 130–139.
Redding, S. G. (1990). The spirit of Chinese capitalism. Berlin: Walter de Gruyter.
Rousseau, D. M., Sitkin, S. B., Burt, S. R., & Camerer, C. (1998). Not so different after all: A cross-discipline view of trust. Acad Manage Rev, 23, 393–404.
Silin, H. R. (1976). Leadership and values: the organization of large-scale Taiwanese enterprises. Cambridge, MA: Harvard University Press.
Solomon, R. H. (1971). Mao’s revolution and Chinese political culture. Berkeley, CA: University of California Press.
Standifird, S. S. (2006). Using guanxi to establish corporate reputation in China. Corporate Reputation Review, 9, 171–178.
Sue-Chan, C., & Dasborough, M. T. (2006). The influence of relation-based and rule-based regulations on hiring decisions in the Australian and Hong Kong Chinese cultural contexts. International Journal of Human Resource Management, 17, 1267–1292.
Tsui, A. S., Egan, T. D., & Xin, K. R. (1995). Diversity in organizations: Lessons from demography research. In M. M. Chemers, S. Oskamp, & M. A. Costanzo (Eds.), Diversity in organizations: New perspectives for a changing workplace (pp. 191–219). Thousand Oaks, CA: Sage.
Tsui, A. S., & Farh, J. L. L. (1997). Where guanxi matters: Relational demography and guanxi in the Chinese context. Work and Occupations, 24, 56–79.
Tu, W. M. (1981). Neo Confucian religiosity and human relatedness. In G. de Vos & S. Takao (Eds.), Religion and the family in East Asia (pp. 111–124). Osaka: National Museum of Ethnology.
Tung, R. L., & Worm, V. (2001). Network capitalism: The role of human resources in penetrating the China market. International Journal of Human Resource Management, 12, 517–534.
Uslaner, E. M. (2002). The moral foundations of trust. Cambridge: Cambridge University Press.
Vogel, E. (1989). One step ahead in China: Guangdong under reform. Cambridge, MA: Harvard University Press.
Walder, A. G. (1986). Communist neo-traditionalism: Work and authority in Chinese industry. Berkeley, CA: University of California Press.
Wang, C. L. (2007). Guanxi vs. relationship marketing: Exploring underlying differences. Industrial Marketing Management, 36, 81–86.
Wang, Y. W., Chen, L. C., & Hwang, K. K. (2006). The strategies of trust in Chinese society. Indigenous Psychological Research in Chinese Societies, 25, 199–242.
Wank, D. L. (1999). Commodifying communism: Business, trust, and politics in a Chinese city. New York: Cambridge University Press.
Weber, M. (1978). Economy and society (G. Roth & C. Wittich, Trans.). Berkeley, CA: University of California Press.
Wong, C. S., Tinsley, C., Law, K. S., & Mobley, W. H. (2003). Development and validation of a multidimensional measure of Guanxi. Journal of Psychology in Chinese Societies, 4, 43–69.
Wood, E., Whiteley, A., & Zhang, S. (2002). The cross model of guanxi usage in Chinese leadership. Journal of Management Development, 21, 263–271.
Xin, K. R., & Pearce, J. L. (1996). Guanxi: Connections as substitutes for formal institutional support. Acad Manage J, 39, 1641–1658.
Yang, M. M. H. (1994). Gifts, favors, and banquets: The art of social relationships in China. Ithaca: Cornell University Press.
Yang, C. F. (1995, April 6–9). Psychocultural foundations of informal groups: The issues of loyalty, sincerity, and trust. Paper presented at the 47th Annual Meeting of the Association of Asian Studies, Washington, DC.
Yeung, I. Y. M., & Tung, R. L. (1996). Achieving business success in Confucian societies: The Importance of Guanxi (Connections). Organ Dyn, 25, 54–65.
Zhu, Y. X., McKenna, B., & Sun, Z. (2007). Negotiating with Chinese: Success of initial meeting is the key. Cross Cultural Management, 14, 354–364.
Author information
Authors and Affiliations
Corresponding author
Rights and permissions
Copyright information
© 2012 Springer Science+Business Media, LLC
About this chapter
Cite this chapter
Hwang, KK. (2012). Guanxi and Organizational Behaviors in Chinese Society. In: Foundations of Chinese Psychology. International and Cultural Psychology, vol 1. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-1439-1_11
Download citation
DOI: https://doi.org/10.1007/978-1-4614-1439-1_11
Published:
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4614-1438-4
Online ISBN: 978-1-4614-1439-1
eBook Packages: Behavioral ScienceBehavioral Science and Psychology (R0)