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How do Expatriate Managers Draw the Boundaries of Moral Free Space in the Case of Guanxi?

Author

Listed:
  • Tolga Ulusemre

    (Hawaii Pacific University)

  • Xin Fang

    (Hawaii Pacific University)

Abstract

This paper explores expatriates’ ethical evaluations of and responses to guanxi in China through the lens of integrative social contracts theory. We conducted in-depth interviews with 14 expatriate managers who had spent, on average, 6.5 years working and living in China. Based on the content analysis of these interviews, we identified two different uses of guanxi: defensive and competitive. In general, the respondents found defensive guanxi moral in the Chinese context, while they considered competitive guanxi immoral. Based on our findings, we identified fair competition as the substantive hypernorm that governed most respondents’ ethical evaluations of guanxi. The study has implications for all scholars who seek to utilize integrative social contracts theory to study the relationship between informal networks and corruption in developing countries.

Suggested Citation

  • Tolga Ulusemre & Xin Fang, 2022. "How do Expatriate Managers Draw the Boundaries of Moral Free Space in the Case of Guanxi?," Journal of Business Ethics, Springer, vol. 176(2), pages 311-324, March.
    • Handle: RePEc:kap:jbuset:v:176:y:2022:i:2:d:10.1007_s10551-020-04720-0
    DOI: 10.1007/s10551-020-04720-0
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    References listed on IDEAS

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    1. Cumming, Douglas & Ge, Ying, 2022. "Trade facilitation costs and corruption: Evidence from China," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 78(C).

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