Paradoxes and guanxi dilemmas in emerging Chinese–Western intercultural relationships

Abstract

Three paradoxes have been revealed in the study of business networks by Industrial Marketing and Purchasing (IMP) researchers. These are: seeking opportunities and then facing limitations, influencing others and yet being influenced in turn, and controlling and yet being out of control in network situations. These paradoxes have previously received little critical evaluation. This article investigates these paradoxes through in depth interviews with twenty-two business managers in Chinese–Western intercultural relationships. Three specific dilemmas relating to the fundamental Chinese cultural principle of guanxi are revealed. These dilemmas are: dilemmas between strong personal ties (guanxi) and weak personal ties, dilemmas between previous understandings and new learning of guanxi ties, and conflicting obligations between inner and outer circles of guanxi networks. These guanxi dilemmas occur in emerging Chinese–Western intercultural networks, irrespective of the specific cultural variations, contractual constraints, or corporate policies applying. This paper identifies a need for more acute study of guanxi cultural norms and their behavioral consequences in emerging Chinese–Western intercultural relationships, given the rise of China in the global economy.