Rethinking Chinese Business

Abstract

This volume, using Chinese family firms and Chinese business networks as the focus of inquiry, aims to address the issue of the social in economic behaviour. It fundamentally argues that to understand Chinese business, economic actions must be seen as being embedded in social relations. At the same time, it will show that social relations do not ignore economic considerations. The volume addresses three key research problems. Firstly, it looks at Chinese family business, focusing on the internal dynamics and organizational structures of Chinese family firms. Are Chinese family businesses truly unique? And if they are, how and why so? Is there a particular form of capitalism to account for the East Asian phenomena? Secondly, the volume explores the social foundations of Chinese business networks, especially the inclination to incorporate personal relationships in decision making. How do we account for the prevalence of personalism in Chinese business practices? What is guanxi and how is it established and maintained? Why is trust important in Chinese business transactions? Why do the Chinese prefer to do business with kinsmen and other Chinese? Finally, since the 1970s, the world has witnessed the phenomenal rise of China, politically, militarily, and most significantly, economically. China is today the second largest economy in the world. What is the impact of the rise of China on Chinese businesses overseas? Do the concepts of guanxi and xinyong have any relevance in doing business between co-ethnics?