Guanxi Dynamics Research Articles

A Review of Supervisor–Subordinate Guanxi: Current Trends and Future Research

Supervisor–subordinate guanxi is an emerging research area in assessing the link between superior and subordinate inside an organization, and due to its significance in the Chinese setting, this topic has become widely attractive. Yet, because this concept still needs attention to understand the dynamics of guanxi, more research on the content, antecedents and other expert opinions of supervisor–subordinate guanxi is required. In light of the literature review, this study will make a commentary on the findings of both domestic and international research on supervisor–subordinate guanxi from the perspective of the following three aspects: supervisor–subordinate guanxi’s content, its antecedents, functions, and its findings. Finally, it will highlight the dearth of recent research and suggest future directions for supervisor–subordinate guanxi research.

Guanxi orientation, value creation and value capture in buyer-supplier relationships: a dyadic perspective

PurposeThis paper aims to investigate the importance and prevalence of Guanxi in business interactions in network-based societies such as China, few studies have the phenomenon from a dyadic view. In a business dyad, one partner may not value Guanxi and take it as a template for actions as the other does.Design/methodology/approachThe authors propose that such collective and asymmetric Guanxi orientation influence both the creation and distribution of relational rent in a Guanxi dyad. Furthermore, relationship-specific investments (RSIs) moderate the relationship between dyadic Guanxi orientation and relational rent creation and distribution.FindingsBased on a matched sample of supplier-buyer dyads in China, the authors find that joint Guanxi orientation is positively related to joint pie creation, whereas Guanxi orientation imbalance has a positive effect on the pie distribution imbalance.Originality/valueThese results contribute to the literature by revealing how dyadic Guanxi dynamics and practices affect dyadic performance and providing managers with meaningful implications for dyadic Guanxi management.

Should I use my ‘weak’ social capital or ‘strong’ guanxi? Reviewing and critiquing two theories in the context of Western-Chinese migration

Social network dynamics are complex in the context of Chinese overseas migration because of the unique dynamics of guanxi, which are distinctly different from ‘Western’ social capital. The few migration studies comparing guanxi and social capital suggest that the former largely consists ‘strong ties’, while the latter is comprised of ‘weak ties’. However, most apply only a cursory comparison of one network facet. We review core literature in the two fields to contrast what each says about network norms, structures and practices. We find that: (i) guanxi is characterised by dynamics of ‘face’ and renqing; (ii) guanxi has core and peripheral aspects that grant it bonding and bridging qualities; (iii) weak ties in social capital networks are more beneficial for acquiring non-redundant resources, and for joining civic/voluntary associations; (iv) while strong, face-based guanxi ties better mobilise valuable resources, these ties are rarely transformed into social capital.

Gendered and sexualized guanxi: the use of erotic capital in the workplace in urban China

ABSTRACT By critically incorporating the concept of erotic capital, this research, which is based on an ethnographic study of female white-collar employees, discloses the gendered and sexualized dynamics of guanxi in urban China. The research first examines the male-centred standardized routine of guanxi through a detailed analysis of yingchou, a practice consisting of banquets and post-banquet activities, which can involve the use of women as subordinate ‘erotic gifts’. Then, a four-type characterization of white-collar women is developed which demonstrates ways in which women can achieve more agentic, and potentially equal, guanxi status. The types identified in the study are: ‘pseudo-brothers’, ‘rational legal professionals’, ‘the unreachable desired’, and ‘the unspoken rules followers’. Each type has a specific way of navigating the patriarchal structure of guanxi, though boundaries between types are blurred and women may change their strategy, and therefore their type, over time.

Relational power and influence strategies: a step further in understanding power dynamics

PurposeThe purpose of this study is to examine the existence of relational power which is derived from an indigenous Chinese construct – guanxi. The authors also test the hypotheses of relational power with two well established power sources (position and personal power) and their relationships with influence strategies (persuasive, assertive and relationship‐based).Design/methodology/approachThe authors employed a mixed method approach. The survey study included 438 Chinese respondents whereas the follow‐up interview study included 17 managers from different industries, collected across main cities in China.FindingsThe analysis of the data from survey responses provides support for the authors' argument regarding the existence of relational power. Survey results showed that all three power sources predicted leaders' choices of influence strategies. The follow‐up qualitative findings from additional interviews with managers also shed interesting insights into the dynamics of different power sources.Research limitations/implicationsThe use of a convenience sample may limit the generalizability of the findings. Notwithstanding, the study contributes to the power literature by adding a new dimension to the existing power typology, thus helping us better understand how different power sources affect leaders' choices of influence strategies.Practical implicationsThe study offers new insights to both practitioners and academicians, which is of growing importance because knowledge on power sources and understanding how it operates should help managers consciously cultivate desirable types of power. This study also shows the dynamics of guanxi, thus helping the Westerners better understand work relationships in China and understand why guanxi/relational power is effective here.Originality/valueThe paper integrates the power‐dependency theory and an indigenous Chinese construct – guanxi and empirically examines how the authors' proposed power source – relational power – affects leaders' choices of influence strategies. The paper argues that by adding this new power source to the power typology which has dominated the power literature for half a century can fully capture the sources of power embedded in an organizational setting, and generate practical implications on leader‐member interactions.

Individual and collective interorganizational Guanxi: The dynamics of Guanxi and knowledge sharing

The significance of interorganizational relationship is discussed in multiple streams of literature. However, many studies assume that interorganizational relationship is a uni-level construct. This paper suggests that interorganizational guanxi presents at both the individual and collective levels, and discusses how the dynamics of interorganizational guanxi influences knowledge sharing between alliances. The paper reinforces the concept of collective level interorganizational guanxi, reveals the link between individual level and collective level guanxi, and distinguishes the two levels of guanxi by analyzing their impacts on knowledge sharing between organizations. A theoretical model is developed and calls for further investigation through empirical research.

Cronyism

PurposeThe purpose of this paper is to determine a model of how a foreign businessman obtains and maintains cronyism from his Chinese counterpart that emphasizes on an insider perspective to convert him from a new friend to an old friend of his Chinese counterpart through aguanxiadaptation mechanism.Design/methodology/approachA vigorous analysis of extant literature and an investigation of insider dynamics within a new friend/old friend perspective.FindingsGift‐giving is strategic and a foreign businessman must manage its monetary value very cautiously in order to alleviate the “face” and providerenqingso as to generategangingand to obtain cronyism from his Chinese counterpart. In saying that, relativism prevails. A foreign company must establish a zone of ethical tolerance so that its executive knows the limits when practicing gift‐giving. In China, an old friend is a supporter and therefore a foreign business should not openly criticize his Chinese counterpart. Frequent visits to China must be maintained.Practical implicationsA foreign businessman needs to understand theguanxidynamics ofrenqingandgangingand their sequential arrangement in the adaptation mechanism. He should use gift‐giving to offerrenqingso as to establishgangingwith his Chinese counterparts.Originality/valueProvides a depth analysis of two emotional aspects in theguanxiadaptation mechanism, i.e.renqingandgangingwhich is a definitive device to convert a foreign businessman from a new friend to an old friend of his counterpart in the Chinese market.

The dynamics of guanxi in Chinese hightech firms: Implications for knowledge management and decision making

This paper employs multiple theoretical perspectives — resource-and knowledge-based views as well as social network theory — to explore the dynamics of guanxi in the context of Chinese entrepreneurial firms. We propose a dynamic model and offer multiple propositions for researchers to examine the role of guanxi for knowledge management and decision-making at various developmental stages of such firms.

The dynamics of guanxi and ethics for chinese executives

This study empirically examines how Chinese executives perceive the role of guanxi and ethics played in their business operations. By factor-analyzing 850 valid replies collected from a comprehensive survey, the present study identifies three distinct ethics-related attitudes and two distinct guanxi-related attitudes for Chinese executives. The cluster analysis of the composite scores of these five attitudinal factors further indicates the existence of three distinct groups of Chinese executives that vary in their ethics and guanxi orientations. The three groups are unethical profit seeker (UPS), anti-governance, guanxi-cultivator (AGGC), and apathetic executive (AE). The three groups are also found to be significantly different in such demographic characteristics as age and the ownership structure of the serving organization. Specifically, the inter-group comparison suggests that younger Chinese executives, and those working for privately-owned firms and joint ventures are more inclined to engage in unethical activities for profits. These findings provide useful insights for international investors to formulate their human resource and negotiation strategies in China.

The Culture of Guanxi in a North China Village

The Culture of Guanxi in a North China Village