Guanxi

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Template:ChineseText Guanxi (simplified Chinese: 关系; traditional Chinese: 關係; pinyin: gūanxi ), describes the basic dynamic in personalised networks of influence. The Pinyin romanization of this Chinese word is becoming more widely used instead of the two common translations —- "connections" and "relationships" —- as neither of those terms sufficiently reflect the wide cultural implications that guanxi describes.

Closely related concepts include that of ganqing, a measure which reflects the depth of feeling within an interpersonal relationship, renqing, the moral obligation to maintain the relationship, and the idea of "face", meaning social status, propriety, prestige, or more realistically a combination of all three. "Face" has two components, lian and mianzi. Lian is achieved through proper behavior in relationships. Mianzi is obtained when behavior exceeds obligatory role expectations.

Description

Guanxi is a central concept in Chinese society and describes, in part, a personal connection between two people in which one is able to prevail upon another to perform a favor or service, or be prevailed upon. The two people need not be of equal social status. It could also be a network of contacts, which an individual can call upon when something needs to be done, and through which he or she can exert influence on behalf of another. It can also describe a state of general understanding between two people: "he/she is aware of my wants/needs and will take them into account when deciding her/his course of future actions which concern or could concern me".

The term is not generally used to describe relationships within a family, although guanxi obligations can sometimes be described in terms of an extended family. The term is also not generally used to describe relationships that fall within other well-defined societal norms (e.g. boss / office worker, teacher / student, friend). The relationships formed by guanxi are personal and not transferable.

Sociologists have linked guanxi with the concept of social capital (it has been described as a Gemeinschaft value structure), and it has been exhaustively described in studies of Chinese economic and political behavior, including those listed below. When a guanxi network violates bureaucratic norms, it can lead to corruption, and guanxi can also form the basis of patron-client relations.

Guanxi often makes the press when its obligations take precedence over civic duties, leading to nepotism and cronyism, but commentators that focus exclusively on these negative aspects of guanxi are missing the bigger picture described above.

Business Context of Guanxi: This concept has been often practised by modern corporates in Korea, Japan, Thailand and China. In the modern business world, Guanxi integrates all the supply chain partners of a business model, working towards efficient operations and effective offerings. A lot of learnings from Guanxi, subtly put in practice by the South East Asean companies (except India and Gulf countries) has been one of the main reasons why we get the most cheapest and sophisticated products from these countries. The JIT and Kaizen models developed by Japanese can never be implemented unless there is a healthy Guanxi practice in the business environment.

See also

External links

  • China's modern power house, BBC article discussing the role of Guanxi in the modern governance of China.
  • What is guanxi? Wiki discussion about definitions of guanxi, developed by the publishers of Guanxi: The China Letter.
  • Guanxi, The art of relationships, by Robert Buderi, Gregory T. Huang, ISBN 0-7432-7322-2.
  • “Questioning Guanxi: Definition, Classification and Implications”, International Business Review, 11:5, 543-561, 2002. by Ying FAN