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The Influence of Relational Demography and Guanxi: The Chinese Case

Author

Listed:
  • Jiing-Lih Farh

    (School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Hong Kong)

  • Anne S. Tsui

    (School of Business and Management, Hong Kong University of Science and Technology, Clear Water Bay, Hong Kong)

  • Katherine Xin

    (School of Business Administration, University of Southern California, Los Angeles, California 90007)

  • Bor-Shiuan Cheng

    (Department of Psychology, National Taiwan University, Taipei, Taiwan)

Abstract

Two studies were conducted to investigate the indigenous concept of guanxi and its applications in the Chinese context. Guanxi refers to the existence of direct particularistic ties between an individual and others. We relate the concept to the idea of relational demography, which refers to similarities or differences between an individual and others on such factors as age, gender, race, religion, education, and occupation. The two studies focused on the importance of guanxi and relational demography in Chinese employment settings. In study 1, their importance was examined in a sample of 560 vertical dyads (i.e., between supervisor and subordinate) in Taiwan. In study 2, the effects were analyzed in a sample of 205 horizontal dyads, specifically between business executives and their important business connections (e.g., key customers, suppliers, bankers, government officials) in mainland China. Results support the importance of both guanxi and relational demography for subordinate trust in the supervisor, but only guanxi is found to be (extremely) important for business executives' trust in their connections. Implications for future cross-cultural research on the effect of common ties are discussed.

Suggested Citation

  • Jiing-Lih Farh & Anne S. Tsui & Katherine Xin & Bor-Shiuan Cheng, 1998. "The Influence of Relational Demography and Guanxi: The Chinese Case," Organization Science, INFORMS, vol. 9(4), pages 471-488, August.
    • Handle: RePEc:inm:ororsc:v:9:y:1998:i:4:p:471-488
    DOI: 10.1287/orsc.9.4.471
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    1. Karen A. Bantel & Susan E. Jackson, 1989. "Top management and innovations in banking: Does the composition of the top team make a difference?," Strategic Management Journal, Wiley Blackwell, vol. 10(S1), pages 107-124, June.
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