The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives

Research output

Abstract

China with its population of more than 1,3 bln people is the biggest and one of the most attractive markets in the world. Interpersonal relations are one of the driving forces of Chinese society. During the last couple of decades, they also became an integral part of Chinese business environment. They tied millions of Chinese firms in social and business networks and turned to be the key determining factor of company’s behavior in business. The aim of the paper is to examine the nature of guanxi and their role in business life of modern China. The paper reveals the notion, key elements and sources of guanxi. It identifies major benefits and drawbacks of the use of guanxi for different economic actors in their business activities. The paper also provides several illustrative cases of Western MNCs operating on Chinese market which faced the phenomenon and had to react. Institutional theory is chosen as a general theoretical framework for the research. It is also supplemented by network theory which allows prope
Original languageEnglish
Title of host publicationGSOM Emerging Markets Conference 2015: Business and Government Perspectives
Pages475-483
Publication statusPublished - 2015

Fingerprint

Guanxi
Business networks
China
Chinese firms
Integral
Theoretical framework
Chinese market
Factors
Business activity
Driving force
Institutional theory
Interpersonal relations
Business environment
Network theory

Cite this

Veselova, L., & Veselova, A. (2015). The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives. In GSOM Emerging Markets Conference 2015: Business and Government Perspectives (pp. 475-483)
Veselova, L. ; Veselova, A. / The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives. GSOM Emerging Markets Conference 2015: Business and Government Perspectives. 2015. pp. 475-483
@inproceedings{0ca676d5123d47da91dc37d7db705770,
title = "The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives",
abstract = "China with its population of more than 1,3 bln people is the biggest and one of the most attractive markets in the world. Interpersonal relations are one of the driving forces of Chinese society. During the last couple of decades, they also became an integral part of Chinese business environment. They tied millions of Chinese firms in social and business networks and turned to be the key determining factor of company’s behavior in business. The aim of the paper is to examine the nature of guanxi and their role in business life of modern China. The paper reveals the notion, key elements and sources of guanxi. It identifies major benefits and drawbacks of the use of guanxi for different economic actors in their business activities. The paper also provides several illustrative cases of Western MNCs operating on Chinese market which faced the phenomenon and had to react. Institutional theory is chosen as a general theoretical framework for the research. It is also supplemented by network theory which allows prope",
author = "L. Veselova and A. Veselova",
year = "2015",
language = "English",
isbn = "978-5-992-4-00-91-5",
pages = "475--483",
booktitle = "GSOM Emerging Markets Conference 2015: Business and Government Perspectives",

}

Veselova, L & Veselova, A 2015, The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives. in GSOM Emerging Markets Conference 2015: Business and Government Perspectives. pp. 475-483.

The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives. / Veselova, L.; Veselova, A.

GSOM Emerging Markets Conference 2015: Business and Government Perspectives. 2015. p. 475-483.

Research output

TY - GEN

T1 - The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives

AU - Veselova, L.

AU - Veselova, A.

PY - 2015

Y1 - 2015

N2 - China with its population of more than 1,3 bln people is the biggest and one of the most attractive markets in the world. Interpersonal relations are one of the driving forces of Chinese society. During the last couple of decades, they also became an integral part of Chinese business environment. They tied millions of Chinese firms in social and business networks and turned to be the key determining factor of company’s behavior in business. The aim of the paper is to examine the nature of guanxi and their role in business life of modern China. The paper reveals the notion, key elements and sources of guanxi. It identifies major benefits and drawbacks of the use of guanxi for different economic actors in their business activities. The paper also provides several illustrative cases of Western MNCs operating on Chinese market which faced the phenomenon and had to react. Institutional theory is chosen as a general theoretical framework for the research. It is also supplemented by network theory which allows prope

AB - China with its population of more than 1,3 bln people is the biggest and one of the most attractive markets in the world. Interpersonal relations are one of the driving forces of Chinese society. During the last couple of decades, they also became an integral part of Chinese business environment. They tied millions of Chinese firms in social and business networks and turned to be the key determining factor of company’s behavior in business. The aim of the paper is to examine the nature of guanxi and their role in business life of modern China. The paper reveals the notion, key elements and sources of guanxi. It identifies major benefits and drawbacks of the use of guanxi for different economic actors in their business activities. The paper also provides several illustrative cases of Western MNCs operating on Chinese market which faced the phenomenon and had to react. Institutional theory is chosen as a general theoretical framework for the research. It is also supplemented by network theory which allows prope

M3 - Conference contribution

SN - 978-5-992-4-00-91-5

SP - 475

EP - 483

BT - GSOM Emerging Markets Conference 2015: Business and Government Perspectives

ER -

Veselova L, Veselova A. The Role of Informal Relations (Guanxi) in China: Institutional and Business Networks Perspectives. In GSOM Emerging Markets Conference 2015: Business and Government Perspectives. 2015. p. 475-483