Whither guanxi and social networks in China? A review of theory and practice

Abstract

ABSTRACT The analysis of guanxi and social networks is well-established but heated debates continue on its utility in Chinese business and management. Many argue that it offers an emotionally sensitive, network-based form of resource allocation, uniquely fitted to China’s distinctive national culture. Others assert that it impedes open-market competition and merit-based reward, factors assumed to be essential for the optimal functioning of capitalist economies. Our collection of research offers new empirical insights and nuanced conceptual development on these debates, demonstrating the continuing relevance of guanxi in the 21st century. This is achieved through examining multinational enterprise corporate performance, governance structures in Chinese private firms, organizational justice in Chinese banks, entrepreneurial learning and knowledge acquisition and the gendered nature of guanxi in the workplace. Important theoretical and practical implications from these studies are highlighted, as well as the key implications for future research. The collection is dedicated to the memory of our dear friend, mentor and colleague, Professor Malcolm Warner, who passed away during its development.