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The Leader–Member Exchange Theory in the Chinese Context and the Ethical Challenge of Guanxi

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  • Dan Nie
  • Anna-Maija Lämsä

Abstract

The leader–member relationship has been identified as a key determinant of successful working relationships and business outcomes in China. A high-quality leader–member relationship helps managers and employees to meet the demands they face and gives them the opportunity to develop socially, emotionally and morally. Such relationships form the basis of the overall well-being and success of the organisation. This article contributes to relationally oriented leadership theories and more specifically to the leader–member exchange (LMX) theory by examining the theory in the context of Western expatriate managers and Chinese employees in China. The first aim of the study is to analyse the similarities and differences between the LMX theory, which owes its origins to Western corporate experience, and the social and moral norms of guanxi, a crucial element in the Chinese value system. Since Westerners and Chinese people can give different interpretations to guanxi, the second aim of the article is to discuss the ethical challenges to the Western manager arising from guanxi. The findings of this study have implications not only for China, but also for other Chinese communities (Macau, Taiwan, Hong Kong, the Philippines and Singapore) where guanxi is endorsed and practised. Copyright Springer Science+Business Media Dordrecht 2015

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  • Dan Nie & Anna-Maija Lämsä, 2015. "The Leader–Member Exchange Theory in the Chinese Context and the Ethical Challenge of Guanxi," Journal of Business Ethics, Springer, vol. 128(4), pages 851-861, June.
    • Handle: RePEc:kap:jbuset:v:128:y:2015:i:4:p:851-861
    DOI: 10.1007/s10551-013-1983-9
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    2. Guo, Ying & Rammal, Hussain G. & Benson, John & Zhu, Ying & Dowling, Peter J., 2018. "Interpersonal relations in China: Expatriates’ perspective on the development and use of guanxi," International Business Review, Elsevier, vol. 27(2), pages 455-464.
    3. Kai Wu & Yi Liu & Yifan Xu & He Sun, 2023. "It pays to have guanxi: How social capital affects household income in China," International Studies of Economics, John Wiley & Sons, vol. 18(3), pages 370-392, September.
    4. Muafi & Olivia Fachrunnisa & Yuni Siswanti & Zainal Mustofa Qadri & Dwipraptono Agus Harjito, 2019. "Empowering Leadership and Individual Readiness to Change: the Role of People Dimension and Work Method," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 10(4), pages 1515-1535, December.
    5. Zhiyu Feng & Fong Keng-Highberger & Kai Chi Yam & Xiao-Ping Chen & Hu Li, 2023. "Wolves in Sheep’s Clothing: How and When Machiavellian Leaders Demonstrate Strategic Abuse," Journal of Business Ethics, Springer, vol. 184(1), pages 255-280, April.
    6. Mengying Wu & Rongsong Wang & Peixu He & Christophe Estay & Zubair Akram, 2020. "Examining How Ambidextrous Leadership Relates to Affective Commitment and Workplace Deviance Behavior of Employees: The Moderating Role of Supervisor–Subordinate Exchange Guanxi," IJERPH, MDPI, vol. 17(15), pages 1-18, July.

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