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Chinese guanxi as network building: the emergence of the new institutional environment in China

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  • Rick Molz
  • Xiaoyun Wang

Abstract

This paper examines the role of guanxi in the emergence of the Chinese institutional environment, institutional structure and business environment. In China, the institutional environment, institutional structure and resulting business environment are rapidly evolving and are not yet stable or predictable. Under these circumstances, guanxi is important to business executives in enacting successful business exchanges in the face of uncertainty and unpredictability. By using institutional theory and negotiated order theory, we argue that the use of guanxi will improve enterprise performance and shape the emerging institutional environment and resulting business environment.

Suggested Citation

  • Rick Molz & Xiaoyun Wang, 2006. "Chinese guanxi as network building: the emergence of the new institutional environment in China," Global Business and Economics Review, Inderscience Enterprises Ltd, vol. 8(1/2), pages 44-59.
    • Handle: RePEc:ids:gbusec:v:8:y:2006:i:1/2:p:44-59
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    Cited by:

    1. Jihong Liu & Yaping Wang & Liansheng Wu, 2011. "The Effect of Guanxi on Audit Quality in China," Journal of Business Ethics, Springer, vol. 103(4), pages 621-638, November.
    2. Carla Millar & Chong-Ju Choi & Philip Cheng, 2009. "Co-Evolution: Law and Institutions in International Ethics Research," Journal of Business Ethics, Springer, vol. 87(4), pages 455-462, July.

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