Guanxi and Networking
Markus Taube, Sven Horak · 2023
This chapter has the following aims i) to outline the mechanics of guanxi relations and networks in Chinese society, ii) to highlight the impact of guanxi relations and networks on Chinese business and management, and iii) to discuss China’s guanxi relations and networks in international comparison. In order to do so, this chapter integrates different streams of literature (economic and sociological network literature, management and organisation studies, Chinese and East Asian area studies) into a comprehensive analysis shedding light on the various forms and dimensions in which guanxi relations and networks shape the way business is conducted in China. The conclusion notes that today guanxi relations continue to persist in their relevance for Chinese business and management. While losing functionality in some areas, they attain new usage in other fields. Guanxi networks are increasingly employed in a flexible manner that allow the best characteristics of these particularistic networks, on the one hand, and the performance, merit-based principles of capitalist markets, on the other hand, to structure business transactions in the contemporary Chinese economy.