Guanxi

Paper Summary:

The paper explains the concept of Guanxi that demonstrates the principles of an interrelation style based on previous relationships. The paper presents a literature review and outlines the proposed research on whether Guanxi can be a source of sustained competitive advantage for doing business in China. The paper relates that the study will explore this question through a greater understanding of Guanxi in action and in productive formats, as well as through looking at areas of resistance to it and how well business relationships survive this resistance in a business culture that thrives on the use of Guanxi. The paper describes the study's setting, its methodology and the expected results.

Outline:
Statement of Problem/Proposal Introduction
Review of Literature
Research Question
Setting
Methodology
Expected Results

From the Paper:

"According to Wood, Whiteley & Zhang the concept of Guanxi, best translates in the western tradition to "who you know not what you know." In the same article the authors point out that the differences in Western vs. the Guanxi pattern of organization include, "differences in motives for utilization, the nature of reciprocation, the time orientation of the concepts, the use of power differentiation, the nature or source of power, and the nature of sanction employed as a result of different concepts." (2002, p.263) Many, spin negativity on the concept of getting somewhere based upon who you know as fierce independence and the rejection of traditional hierarchical systems, idealized in the western tradition restrict the allowance of birthright or privilege as a legitimate manner of getting ahead. Many would call it nepotism and reject it out of hand, despite the fact that it or something like it is evident in nearly every business culture in the world, not excluding the west. Who is unaware of the fact that the best way to get a job is to talk to everyone you know and get recommendations from them for where to go?"

Sample of Sources Used:

• Ambler, T., & Witzel, M. (2003). Doing Business in China. London: Routledge.
• Barabasi, A (2003) Linked. New York: Plume Books
• Berger, P., & Luckmann, T. (1991). The Social Construction of Reality. New York: Penguin Books.
• Chang, W. (2004). Guanxi and Regulation in Networks: The Yunnanese Jade Trade between Burma and Thailand, 1962-88. Journal of Southeast Asian
• Giddens, A. (1984). The Constitution of Society. Berkley, CA: University of California Press. Studies, 35(3), 479.

More papers on Guanxi:

• Research Paper # 109532 : "Guanxi"
• Research Proposal # 108083 : "Guanxi Organizational Model"
• Essay # 45293 : "Influence of Culture in Business"

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