Guanxi in Contemporary Chinese Business: The Persistent Power of Social Networking

Guanxi is still important in 21st-century Chinese business and management, but it is a complex concept that has both dark and light sides. This book explores how guanxi affects firm performance, employee performance, and the exclusion of emerging talent.

Format: Paperback / softback
Length: 126 pages
Publication date: 25 September 2023
Publisher: Taylor & Francis Ltd

Guanxi, a deeply ingrained cultural concept in China, has long been considered a key factor in business and management. However, as we enter the 21st century, questions arise about its relevance and significance in the modern business landscape. Does guanxi still hold the same cultural distinctiveness that makes it impenetrable to outsiders? Or has it evolved into just another elite network embedded in the business and political spheres worldwide?

To address these questions, this book offers a comprehensive exploration of guanxi through a combination of new empirical insight and nuanced conceptual development. Drawing on a range of research examples, including investigations of multinational enterprise corporate performance, governance structures in Chinese private firms, organisational justice in Chinese banks, entrepreneurial learning and knowledge acquisition, and the gendered and sexualized nature of guanxi in the workplace, the book provides a rich understanding of the complex dynamics of guanxi in contemporary Chinese societies.

In terms of firm performance, the book highlights the continued importance of guanxi in different domains, including the political sphere at both the local and national level. Cultivating guanxi can yield significant benefits for MNEs and Chinese firms, enabling them to navigate complex business environments, access valuable resources, and build strong relationships with key stakeholders. However, it is important to note that the impact of guanxi on employee performance is not uniform. While some younger employees may be eager to move towards more merit-based systems and resent being judged solely on guanxi connections, others may find themselves excluded from conventional guanxi relationships based on Confucian paternalism. This can lead to a significant loss of talent and potential for innovation.

The book also sheds light on the complex nature of guanxi, acknowledging its both dark and light sides. On the one hand, guanxi can provide a sense of belonging, trust, and support, which can enhance employee motivation, job satisfaction, and overall organisational performance. On the other hand, guanxi can also be fraught with corruption, nepotism, and favouritism, which can undermine the integrity of the business system and create a culture of inequality.

In conclusion, this book provides a valuable contribution to the understanding of guanxi in 21st century Chinese business and management. By examining the empirical evidence and conceptual development, it offers a nuanced perspective on the continued power of guanxi in Chinese societies. While guanxi remains an important cultural concept, it is crucial to recognise its dynamic nature and to explore ways to harness its positive aspects while addressing its negative consequences. This will require a shift towards more merit-based systems, greater transparency, and a commitment to ethical practices in business and management.

Weight: 453g
Dimension: 246 x 174 (mm)
ISBN-13: 9780367645069