University of Hertfordshire Research Archive

        JavaScript is disabled for your browser. Some features of this site may not work without it.

        Browse

        All of UHRABy Issue DateAuthorsTitlesThis CollectionBy Issue DateAuthorsTitles

        Arkivum Files

        My Downloads
        View Item 
        • UHRA Home
        • University of Hertfordshire
        • Research publications
        • View Item
        • UHRA Home
        • University of Hertfordshire
        • Research publications
        • View Item

        Doing business in China : Is the importance of guanxi diminishing?

        Author
        Wilson, Jonathan
        Brennan, Ross
        Attention
        2299/8855
        Abstract
        Purpose: Guanxi has been well documented as being an essential part of doing business in China. Yet, as China continues with market liberalisation, there are indications that its strategic importance is set to decline. From a joint venture perspective, this study seeks to examine the strategic importance of guanxi when doing business in China. Design/methodology/approach: First, the researchers reviewed articles on guanxi and established that although guanxi is still widely considered important, some experts are arguing that this importance is diminishing. Second, qualitative research was used to create a holistic picture of the importance attached to guanxi in UK-Chinese joint ventures. This involved 25 semi-structured interviews with those involved in establishing or managing such a joint venture. Findings: Although guanxi remains important when doing business in China, a number of factors indicate that this importance may begin to decline. These include China's market liberalisation, outward investment, "guanxi learning" on the part of foreign companies and online intermediaries. Research limitations/implications: Since the paper is based on a review of existing research and 25 qualitative interviews, the findings are largely exploratory. Future research might focus on a larger sample, different industries or possibly Chinese firms engaged in outward investment. Practical implications: The findings suggest that to simply describe guanxi as being "important" is too simplistic. Hence, by identifying issues that are likely to affect the strategic importance of guanxi we can help both parent company managers and those engaged in Chinese business practice. Originality/value: Both the review of existing papers and empirical findings help academics to understand a "contemporary view" of guanxi. While managers that have an interest in China can gain a clear understanding of guanxi and its significance in modern day China.
        Publication date
        2010-10-01
        Published in
        European Business Review
        Published version
        https://doi.org/10.1108/09555341011082934
        Other links
        http://hdl.handle.net/2299/8855
        Metadata
        Show full item record
        Keep in touch

        © 2019 University of Hertfordshire

        I want to...

        • Apply for a course
        • Download a Prospectus
        • Find a job at the University
        • Make a complaint
        • Contact the Press Office

        Go to...

        • Accommodation booking
        • Your student record
        • Bayfordbury
        • KASPAR
        • UH Arts

        The small print

        • Terms of use
        • Privacy and cookies
        • Criminal Finances Act 2017
        • Modern Slavery Act 2015
        • Sitemap

        Find/Contact us

        • T: +44 (0)1707 284000
        • E: ask@herts.ac.uk
        • Where to find us
        • Parking
        • hr
        • qaa
        • stonewall
        • AMBA
        • ECU Race Charter
        • disability confident
        • AthenaSwan