Guanxi, Social Capital and Networking

Abstract

<p style="text-align: justify;">This article synthesizes the meaning and importance of Guanxi which is describes as the basic dynamics of personalized networks of influence and constitutes a central concept in Chinese society. Based on their own definitions of relationships, the West usually interprets it as a set of relationships and connections. However, it is much more complicated and intricate. Guanxi is one of the most powerful forces in Chinese culture, encompassing the idea of a complex series of connections of individuals and families with which a person is connected. Guanxi is created and deepened over time and brings with it a great responsibility in terms of social exchanges and favors. Understanding the role of Guanxi in business is very important to develop fruitful relationships in China. The nature of Guanxi reciprocity and the implicit obligations are one of the main reasons why the Chinese are reluctant to embark on deep business relationships with people they do not know. Literally "Guanxi" means the connection between two or more people through a relationship of mutual dependence that includes the realization of reciprocal personal gifts and favors.</p>