Peer-to-peer guanxi and unethical practices: a dynamic examination based on cultural change in China

Abstract

ABSTRACT This conceptual paper takes a dynamic view of culture to re-examine the tradeoffs between positive and negative aspects of guanxi in China. Because of cross-border collaboration and the wide use of the internet, Chinese employees are now exposed to more diverse values. Considering this cultural shift, the current paper discusses how the widely publicized negative aspect of guanxi relations in Chinese organizations can be mitigated. We suggest that employees are likely to withdraw from peer-to-peer guanxi relations that involve ethical concerns, and the likelihood and speed of this relation change would vary in part on the focal party’s heritage of Confucian cultural values. This paper contributes to the literature by offering a dynamic approach to reconcile the controversy about peer-to-peer guanxi’s role in Chinese organizations. This dynamic examination can invite further research on the complicated evolution of guanxi.