Abstract

This paper utilizes two conceptual frameworks, on the foundation of Hwang’s (1987) model and the Justice Theory. It is suggested that businessperson may search for or reinforce Guanxi (tie) by three types of social ties, instrumental, mixed, and expressive. Therefore, resource allocators in Chinese society may deal out their powers to others with varied social ties. This study examines the relationships among the three types of social ties and Renqing giving and returning. Data collected form questionnaires completed by 190 Japanese expatriates in Taiwan. The findings are as follows: (1) businessperson with instrumental Guanxi will apply the equity rule, which excludes Renqing giving and returning; (2) businessperson with mixed Guanxi will use the equality rule, which will request moderate Renqing giving and returning; (3) businessperson with expressive Guanxi will apply the need rule, which will request strong Renqing giving and returning. Managerial implications are discussed in the final section.

Highlights

  • This paper applies two conceptual frameworks, on the basis of Hwang’s (1987) model and the Justice Theory

  • Data collected form questionnaires completed by 190 Japanese expatriates in Taiwan

  • The model suggested that businesspersons may look for or strengthen their Guanxi by transforming three types of social ties

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Summary

Introduction

This paper applies two conceptual frameworks, on the basis of Hwang’s (1987) model and the Justice Theory. For the Chinese, the equality rule applies only to strangers It is suggested Guanxi (tie) can be segregated into three types: (1) expressive, (2) mixed, and (3) instrumental, each of which we will deem in the context of their relationship with the Justice Theory Hwang (1987). Based on the theoretical expansion above, a research framework is shown in the Figures 1, and three hypotheses are stated as follow: H1: Businessperson with instrumental Guanxi will apply the equity rule, which excludes Renqing giving and returning in the Great China Area. H2: Businessperson with mixed Guanxi will apply the equality rule, which will request moderate Renqing giving and returning in the Great China Area. H3: Businessperson with expressive Guanxi will apply the need rule, which will request strong Renqing giving and returning in the Great China Area

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