Guanxi and trust in strategic alliances

Abstract

PurposeThe purpose of this paper is to distinguish different types of guanxi from a historic perspective and to investigate the effects of different types of guanxi on trust between alliance partners through an empirical study.Design/methodology/approachThe paper first reviews the role of guanxi in Chinese history and identifies two types of guanxi. Next, it reports an empirical study that tests the effects of these two types of guanxi on interorganizational trust through a survey among automobile parts suppliers in China.FindingsFirst, this paper identifies two types of guanxi: role‐based hierarchical guanxi endorsed by Confucianism and soil‐rooted egocentric guanxi derived from daily practices of Chinese people. The ever changing social environment in Chinese history supports a spiral development model of guanxi evolution. Each of the two types of guanxi takes a dominant position in different periods of time. Second, a subsequent empirical study demonstrates that, in today's Chinese business environment, role‐based guanxi makes a more significant impact on interorganizational trust than soil‐rooted guanxi. Moreover, these two types of guanxi produce a positive synergistic effect and facilitate each other in boosting interorganizational trust.Originality/valueThis is the first paper that identifies and empirically tests the effects of role‐based hierarchical guanxi and soil‐rooted egocentric guanxi. More broadly, the paper highlights the importance of studying guanxi from a historic perspective. It demonstrates how a historical analysis may further the understanding of guanxi and its effect on interorganizational trust in today's business context.

<p>Confidence is the plant of slow growth: a moderated mediation model for predicting voice behavior among power distance orientation and team-based self-esteem in Taiwanese nurses</p>

“…Guanxi, known as a trust-based interpersonal relationship, takes on a traditional Chinese role and values trust, favors, dependence, and adaptation 69,70. Role-based guanxi, one of the guanxi’s rules, means that a relationship is built upon different positions or levels of power, such as supervisor and subordinate 15,71. In other words, when Taiwanese nurses have a higher level of power distance orientation, they may get more team-based identity from team trust.…”

“…Trust provides people with a mental resource to challenge unfavorable situations, maintain self-evaluation, and most importantly lead to individuals feeling good 12,13. However, there are some traditional values in Taiwan, like hierarchical relationships, collectivism, and Confucianism, making interpersonal relationships become more complex and highlighting the worth of group harmony, status difference, and collective capability in a work setting 14,15. The tendency toward power distance orientation, such as status difference and hierarchical relationships, may break up collaboration in such a profession that demands teamwork and should be considered as a research topic.…”

Ethical Leadership and Young University Teachers’ Work Engagement: A Moderated Mediation Model

“…Third, the present study identifies S-S guanxi as an important boundary condition. Gong et al [81] argued that the effectiveness of trust can be affected by relational factors. We offer empirical support for this argument by revealing that S-S guanxi moderates the relationship between organizational trust and young teachers' work engagement.…”

A review of management history from 2010-2014 utilizing a thematic analysis approach

“…These studies present historical evidence of business experiences in a particular country that can be applied to researchers and practitioners in other countries. During this time period, researchers have studied business in the following countries: Finland (Verje et al, 2013;Kuokkanen et al, 2010;Seeck and Laakso, 2010), China (Gong et al, 2013;Rothschild et al, 2012), The Netherlands (Baalen andKarsten, 2010), the USA (Hilsenrath, 2012), Norway (Mack, 2010), Lebanon (2012), New Zealand (Cardow et al, 2011), Spain (Maixé-Altés, 2010 and Japan (Bowden and Insch, 2013;Vaszkun and Tsutsui, 2012). By studying historical events in different regions of the world, we can increase our knowledge of how to effectively manage international business relationships in today's global economy.…”