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Thursday, April 4, 2013

Guanxi

When researching the intricacies of conducting business in China no one willing miss the word ?guanxi?. The concept of guanxi is enormously rich, complex, and dynamic and the emergence acceptance and popularity of guanxi in the West has made it all the more important to visualise the pee-pee in its entirety (Chen, 2004 and Redding and Wong, 1986). In fact, respect for guanxi is one of the first things that a foreigner learns closely how to do business in China? (Lee, 2006). Furthermore, guanxi is believed to be so important in Chinese society, it has been suggested that most Chinese individuals and organisations bank upon it to a certain degree (Shan, 2005). Despite this, controversy surrounds the good status of guanxi. Many simply regard guanxi as a Chinese word for corruption, but nonetheless accept it as ?as an unfortunate, though necessary evil for those wishing to break through in business in China? (Dunfee and Warren, 2001: 195). In this strain I will therefore analyse exactly what guanxi is, and grapple that while certain aspects of guanxi are indeed corrupt, it is far to a fault simply to label the entirety of this complex social construct as corruption. Rather, each individual guanxi transaction needs to be analysed in order to determine if it constitutes corruption or a way of doing business.

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However, before analysing the importance of guanxi, it is vital to firstly understand exactly what guanxi is. This is not an easy task, as Tsui and Farh (1997: 59) remark ?the publications (both Chinese and English) shows no consensus in translation of the term guanxi?. Although guanxi is sufficient to be interpreted at different levels and from different perspectives (Tsui and Farh, 1997 and Yang, 1994), it is ordinarily referred to as an indigenous Chinese construct (Hwang, 1987; Yeung & Tung, 1996 and...

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