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The privatisation of China's SOE: How is it affecting the production of guanxi?

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  • Stephen Grainger

Abstract

As the Chinese market economy gathers momentum, how are the methods of producing guanxi in state-owned enterprises (SOE) evolving in response to privatisation? Research comprised of 128 interviews conducted at a SOE in Yunnan Province found the characteristics of producing guanxi are changing due to increasing market forces, the modernisation of management methods and through professional work-based relationships replacing family-based work cliques. Employees are now aiming to produce guanxi by providing quality services for their superiors and customers. The findings suggest stakeholders involved in SOE takeovers or joint ventures need to be aware of new management methods and ways of harnessing guanxi if they are to fully realise the profitability of their SOE acquisitions.

Suggested Citation

  • Stephen Grainger, 2011. "The privatisation of China's SOE: How is it affecting the production of guanxi?," International Journal of Management and Enterprise Development, Inderscience Enterprises Ltd, vol. 10(2/3), pages 156-172.
    • Handle: RePEc:ids:ijmede:v:10:y:2011:i:2/3:p:156-172
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    Cited by:

    1. Xie, Bijun & Li, Min, 2021. "Coworker Guanxi and job performance: Based on the mediating effect of interpersonal trust," Technological Forecasting and Social Change, Elsevier, vol. 171(C).

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