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Guanxi and organizational dynamics in China: a link between individual and organizational levels

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Author Info
Yi Zhang ()
Zigang Zhang
Abstract

Guanxi in China is a very ancient concept embedded in the Confucian concept of life and one that is a ‚hot' topic in that it is currently attracting increasing attention from both Western and Chinese scholars. One aspect of Guanxi which has been the subject of most of the research of late is the influence of Guanxi on firm performance. However, relatively few studies have examined how Guanxi at the individual level is transferred into a firm to influence its financial performance. This study first reclassifies Guanxi into obligatory, reciprocal, and utilitarian types at the individual level as a means to clarifying the confusion brought above from previous studies. It then provides a conceptual framework in which to systematically characterize the link between Guanxi at the individual level and organizational dynamics: that is, how is Guanxi at the individual level shifted to a firm and how does it affect organizational dynamics of that firm at the organizational level. Finally, it provides a deeper understanding of the financial implications of Guanxi to business firms in China. Copyright Springer Science+Business Media, Inc. 2006

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File URL: http://hdl.handle.net/10.1007/s10551-006-9031-7
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Publisher Info
Article provided by Springer in its journal Journal of Business Ethics.

Volume (Year): 67 (2006)
Issue (Month): 4 (September)
Pages: 375-392
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Handle: RePEc:kap:jbuset:v:67:y:2006:i:4:p:375-392

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Related research
Keywords: China; Guanxi; Individual level; Link; Organizational dynamics; Organizational level;

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References listed on IDEAS
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  1. Peng, Mike W. & Lu, Yuan & Shenkar, Oded & Wang, Denis Y. L., 2001. "Treasures in the China house: a review of management and organizational research on Greater China," Journal of Business Research, Elsevier, vol. 52(2), pages 95-110, May. [Downloadable!] (restricted)
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Cited by:
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  1. Alicia Leung & Xiangyang Liu & Shanshi Liu, 2009. "Moral Schemas and Business Practices: The Ethics of Guangzhou Migrant Marketers," Journal of Business Ethics, Springer, vol. 88(1), pages 11-23, April. [Downloadable!] (restricted)
  2. Millissa Cheung & Wei-Ping Wu & Allan Chan & May Wong, 2009. "Supervisor–Subordinate Guanxi and Employee Work Outcomes: The Mediating Role of Job Satisfaction," Journal of Business Ethics, Springer, vol. 88(1), pages 77-89, April. [Downloadable!] (restricted)
  3. John Tsalikis & Bruce Seaton & Tiger Li, 2008. "The International Business Ethics Index: Asian Emerging Economies," Journal of Business Ethics, Springer, vol. 80(4), pages 643-651, July. [Downloadable!] (restricted)
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