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The Cultural Roots of Guanxi: An Exploratory Study

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  • John H. Dunning
  • Changsu Kim

Abstract

This paper first describes the cultural roots and characteristics of guanxi in Chinese society. It then goes on to test some propositions about the perceived relationship between these characteristics and (i) Hofstede's conceptualisation of collectivism and power distance and (ii) the content and quality of formal institutions. The sampling frame used consisted of three groups of students –viz. Chinese Singaporeans, Non‐Chinese Singaporeans and Mainland Chinese, studying in tertiary institutions in Singapore. Our findings suggest that, while the perceptions of guanxi were positively and significantly related to Hofstede's culturally related variables, this was not so in the case of formal institutions. This latter result suggests that, in East Asian countries, guanxi may well be regarded as, at least, a partial substitute for formal institutions.

Suggested Citation

  • John H. Dunning & Changsu Kim, 2007. "The Cultural Roots of Guanxi: An Exploratory Study," The World Economy, Wiley Blackwell, vol. 30(2), pages 329-341, February.
    • Handle: RePEc:bla:worlde:v:30:y:2007:i:2:p:329-341
    DOI: 10.1111/j.1467-9701.2007.00885.x
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    References listed on IDEAS

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    1. John H. Dunning & Rajneesh Narula, 2004. "Multinationals and Industrial Competitiveness," Books, Edward Elgar Publishing, number 3343.
    2. Alston, Jon P., 1989. "Wa, Guanxi, and Inhwa: Managerial principles in Japan, China, and Korea," Business Horizons, Elsevier, vol. 32(2), pages 26-31.
    3. Douglass C. North, 2005. "Introduction to Understanding the Process of Economic Change," Introductory Chapters, in: Understanding the Process of Economic Change, Princeton University Press.
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    Cited by:

    1. Yina Mao & Kelly Peng & Chi-Sum Wong, 2012. "Indigenous research on Asia: In search of the emic components of guanxi," Asia Pacific Journal of Management, Springer, vol. 29(4), pages 1143-1168, December.
    2. Papageorgiadis, Nikolaos & McDonald, Frank, 2019. "Defining and Measuring the Institutional Context of National Intellectual Property Systems in a post-TRIPS world," Journal of International Management, Elsevier, vol. 25(1), pages 3-18.
    3. Dan Wang & Di Fan & Susan Freeman & Cherrie Jiuhua Zhu, 2017. "Exploring cross-cultural skills for expatriate managers from Chinese multinationals: Congruence and contextualization," Asia Pacific Journal of Management, Springer, vol. 34(1), pages 123-146, March.
    4. Meyer Susanne, 2012. "The world’s factory and informal ties – organisation of firm networks in the electronics industry in the Greater Pearl River Delta, China," ZFW – Advances in Economic Geography, De Gruyter, vol. 56(1-2), pages 9-24, October.
    5. Yang, Chin-Fang & Lai, Chi-Shiun, 2012. "Relationship learning from organizational knowledge stores," Journal of Business Research, Elsevier, vol. 65(3), pages 421-428.
    6. Bickenbach, Frank & Dohse, Dirk & Liu, Wan-Hsin, 2014. "An inquiry into the determinants of graduate entrepreneurship in Hong Kong and Guangzhou (Mainland China)," Kiel Working Papers 1940, Kiel Institute for the World Economy (IfW Kiel).
    7. Bickenbach, Frank & Liu, Wan-Hsin, 2011. "Firm characteristics and informal governance of business operations in the PRD, China," Kiel Working Papers 1728, Kiel Institute for the World Economy (IfW Kiel).
    8. Chen, Dong & Newburry, William & Park, Seung Ho, 2009. "Improving sustainability: An international evolutionary framework," Journal of International Management, Elsevier, vol. 15(3), pages 317-327, September.
    9. Bao Cheng & Yan Peng & Ahmed Shaalan & Marwa Tourky, 2023. "The Hidden Costs of Negative Workplace Gossip: Its Effect on Targets’ Behaviors, the Mediating Role of Guanxi Closeness, and the Moderating Effect of Need for Affiliation," Journal of Business Ethics, Springer, vol. 182(1), pages 287-302, January.
    10. Long Zhang & Yulin Deng & Xin Zhang & Enhua Hu, 2016. "Why do Chinese employees build supervisor-subordinate guanxi? A motivational analysis," Asia Pacific Journal of Management, Springer, vol. 33(3), pages 617-648, September.
    11. Susanne Rühle, 2011. "A Different Capitalism for China? The Role of Guanxi and the Family for Chinese Economic Development," Chapters, in: Werner Pascha & Cornelia Storz & Markus Taube (ed.), Institutional Variety in East Asia, chapter 8, Edward Elgar Publishing.
    12. Cheng, Jao-Hong, 2011. "Inter-organizational relationships and knowledge sharing in green supply chains—Moderating by relational benefits and guanxi," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 47(6), pages 837-849.
    13. Daniel McCarthy & Sheila Puffer & Denise Dunlap & Alfred Jaeger, 2012. "A Stakeholder Approach to the Ethicality of BRIC-firm Managers’ Use of Favors," Journal of Business Ethics, Springer, vol. 109(1), pages 27-38, August.
    14. Bickenbach, Frank & Liu, Wan-Hsin, 2010. "The role of personal relationships for doing business in the GPRD, China: evidence from Hong Kong electronics SMEs," Kiel Working Papers 1589, Kiel Institute for the World Economy (IfW Kiel).
    15. Helen Perks & Kenneth B. Kahn & Cong Zhang, 2010. "The Nature Of R&D-Marketing Integration In Chinese High-Tech Companies," International Journal of Innovation Management (ijim), World Scientific Publishing Co. Pte. Ltd., vol. 14(01), pages 19-40.
    16. Murray, Janet Y. & Fu, Frank Q., 2016. "Strategic guanxi orientation: How to manage distribution channels in China?," Journal of International Management, Elsevier, vol. 22(1), pages 1-16.
    17. Long Zhang & Yulin Deng & Qun Wang, 2014. "An Exploratory Study of Chinese Motives for Building Supervisor–Subordinate Guanxi," Journal of Business Ethics, Springer, vol. 124(4), pages 659-675, November.

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