Guanxi, Cultural Antecedents and Trust Building in Chinese Business Markets - Research Paper Example

?Guanxi, cultural antecedents and trust building in Chinese business markets: an exploratory study. This study looks at the concept of guanxi by understanding its cultural roots and connotations. This article illustrates how the philosophy of Confucius has had a deep impact on the way in which guanxi has evolved over the years. The Confucian philosophy of ‘lun’and the way in which the five cardinal relationships of ‘wu-lun’ have had a high influence on how guanxi operates. It also shows how culture of china has also resulted in a strong perception of Guanxi. The article also takes a deeper look at the way in which Guanxi influences the way in which trust works in Chinese business markets. The main argument is to prove how guanxi operates at many different levels in a business environment with regard to trust. The various types of trust such as goodwill trust, competence trust and collective trust that are involved in the business transactions indicate how guanxi has a strong influence. The increase in globalization has posed some challenges on how Chinese businesses interact with global players in terms of trust. Keywords Guanxi, lun, Chinese culture and guanxi, Trust in Chinese Business Markets, Introduction The concept of Guanxi is one that is not just deep and rich, but also complex and dynamic (Yang, 2001). This idea is central to the Chinese society. The literal translations of this term could mean 'connections' and 'relationships', but both these translated terms cannot describe the deeper meaning and implications that it actually stands for.The concept of guanxi is no longer confined to China and is accepted in the West also. Guanxi has been defined in different ways depending on the various perspectives (Bian, 1997). The Chinese construct considers guanxi as a very specific personal connection between two different people. This connection is exemplified by an inherent psychological contract that needs to be followed. The social norms include being committed, maintaining loyalty and ensuring that the relationship is maintained over a long term. Guanxi also has the key characteristics of trust for the parties involved that is developed through long term interactions, reciprocity and self-disclosure.In literal sense, guanxi means connection. When it comes to relationships, this term either refers to the connection between the parties that are involved, or to the connected parties.There are different stages of guanxi - either existent or non-existent, either good or bad, distant or close, deep or superficial and so on. Guanxi can exist between two or more individuals or even between organizations or different networks.It is also necessary to know that guanxi is function in the different spheres of human life, such as the families, friends, and professional groups, political and business. The term guanxi is used along with different verbs to give it different connotations and meanings. For example, if the phrase 'pull guanxi' is used, then it means the set of actions that indicate initiating and establishing a connection. Similarly, if the phrases ‘walk guanxi' would mean using the established connections to achieve any purpose that needs to be achieved.Similarly, the term has been used in other verb forms such as building, developing, breaking etc. According to Gold et al, (2002), guanxi can be described as part of China's national character. Over the years, Guanxi has played a very important role in the business relationships in China. If the businesses are Guanxi based, then, there would be a higher probability to reduce uncertainty, reduce the transaction costs, and lower the search costs as trusted suppliers are already known. Guanxi based business relationships also add to strong sense of connectedness (Tung and Worm, 2001). Even while dealing with foreign investors, Guanxi helps in reducing the uncertainty associated with doing business with outsiders. This is because Guanxi helps in establishing informal relationships that can guard against any opportunistic behaviour on both sides. Hence, Guanxi is a very integral part of how business operates in China. This article explores the notion of guanxi and its cultural antecedents) and how guanxi plays an important role in building trust in Chinese business markets. Confucianism is explored in the context of guanxi, and also the various cultural context of Guanxi are explored in the study. Hence, this study would looks at how guanxi relates positively to trust building in Chinese business markets. Review of Literature Confucianism and The Nature of Guanxi As in the Chinese societies, guanxi has different meanings, in the modern world, there are numerous different connotations associated with Guanxi. However, in spite of these changes, it is possible to trace some of the core foundations and meanings of guanxi to the ancient Chinese philosophy of Confucianism, as guanxi has a very evident heritage associated with the principles of Confucianism. From as early as BC 206 - Ad 220, Confucianism holds an important place in the Chinese society (Jacobs et al., 1995). In the ideal society defined by Confucius, the individual is a relational being and hence, is a party of a community defined social system. The society is formed on the basis of personal and social networks. The research conducted by King in 1991 took a deep look at the philosophy of Confucianism to understand the historical and cultural foundations of guanxi. According to King (1991), the works of Confucius does not have the term 'guanxi' mentioned anywhere. Instead, the word 'lun' is used. This term is not very well known to the general population in China, but it is very important because it accurately reflects some of the most important aspects of the political system and social system in ancient China. Hence, it is necessary to understand the meaning of 'lun' to get a grasp of the historical background of guanxi. The meaning of 'lun' held the key in understanding human relationships. The basic tenet of Confucian assumption is that human beings are individuals who exist in relationship with each others. There are different types of relationships that exist and out of those, Five Cardinal Relationships or 'wu lun' hold the key. These five relationships include that of ruler and subject, father and son, husband and wife, elder brother and younger brother, and friend and friend. Each relationship is role and affective oriented (Han and Altman, 2009).Even though, the nature and type of relationships have undergone a drastic change when compared to the era when Confucius lived, the societies in modern China are still oriented towards relationships (Reading and Wong, 1986). According to Fei (1992), a second meaning is associated with lun and is known as social order or differentiated order. The stability in a society or social order is formed because of differentiation, which could happen both hierarchically and horizontally. When it comes to hierarchical differentiation, equality in the relationship does not exist between the members or participants of each relationship. Therefore, one particular member enjoys more rights and obligations. The ruler, father, husband, elder brother and senior friend enjoyed stronger rights, prerogatives and authority when compared to that of subject, son, wife, younger brother and younger friend. Similarly, in Guanxi, a similar relationship exists because it link two people who are of unequal stature in such a manner that the weaker of the two in the relationship can request or ask for favours, but her or she does not have to reciprocate in an equal manner (Alston, 1989). The more powerful factor in the relationship has the obligation to assist the weaker one. However, in return the stronger gets a strong reputation and increased power. Hence, just as 'power distance' was an important factor in Confucianism, it also exists in guanxi. In horizontal differentiation, the self is 'at the centre of a series of concentric circles' (Redding and Wong, 1986, p. 284). Here, the others who were related in a social way get differentiated on the level of closeness to the self. The nature of interactions as well as the level of influence depends greatly on the degree of closeness, in the same manner in which close guanxi and distant guanxi operate. In addition, 'lun' also refers to moral principles about the way in which the parties interact. As the relationships are differentiated, the moral principals also get differentiated. The bottom line being that there is no standard of moral that can be applied across all the relationships. Instead, the moral principles differ from relationship to relationship. Similarly, the different types of guanxi and the variations occur because of the fact that various principles and approaches are adopted based on the nature and the type of relationship. Therefore, all the three meanings of 'lun' (human relationships, differentiated order and moral principles) as described by Confucius closely reflect that nature of guanxi. It can also be said that the Confucian principles operated on two different levels when it came to the individuals. While the individual was a socially dependent being, he or she also was the centre of the concentric circles where they had to define, interpret and construct the 'lun' relations. In Confucianism, the members of the society were closely interdependent on others and hence, were embedded in the social context. Therefore, the relationships between different individuals, societies and organizations were harmonious and much sought after. The ethics of Confucianism also teach individuals to provide respect to patriarchs and elders and thus, the same level of respect is also provided to authority of all kinds (Alston, 1989). Evidently, Guanxi is highly influenced by this tenet of Confucianism. The Confucian concept of li (propriety) dictates that the individuals must follow the proper way and the proper rituals of social interaction, respect for age, authority and social norms (Hong and Engestrom, 2004). 'Li' is clearly evident when describing guanxi (Wang et al, 2005). Similarly, the concept of harmony that is very important in guanxi also has its roots in the Confucian philosophy where harmony is the central pivot around which various relationships are sustained, in a familial or an organizational environment. Guanxi also operates in a similar manner where it forms the central crux of the different relationships. Therefore, it is true that Confucianism leads to a very strong sense of Guanxi. Some thinkers are also of the opinion that guanxi is indigenous to the Chinese culture because it has its roots stemmed in the Confucian legacy with a very high importance given to both harmony and hierarchy. Guanxi and Its Cultural Contexts As mentioned earlier, Guanxi is a very important dynamic in a Chinese society because of its cultural roots in Confucianism. Human relationships have historical heritages and vary according to the different nations. Hence, it is necessary to understand the culture and belief systems to grasp the significance of social interactions. Essentially, Guanxi is a social phenomenon which can be understood within a social and cultural purview. The role and importance of Guanxi is exemplified in the Chinese culture, where the concepts of roles and benefits are very closely associated with each other. Yang (1994) analyzed the role effect of guanxi in the modern Chinese society and concluded that guanxi is a very important element in helping the Chinese government to operate. Common people also use guanxi to exert influence on the others. According to Yan, guanxi is established by the development and the maintenance of the network relationships so that an individual or a party is a able to sail through any challenges that they may face eventually. According to Kipnis (1997), guanxi is formed because of a complex social network between peers, families and friends. These networks have three main characteristics that are Mianzi, affect and reciprocal favour, which form the strong basis of Chinese culture. In order to elucidate the presence of guanxi in Chinese culture, it is necessary to understand these concepts Mianzi or 'face' refers to the individual identity of a person in any given situation (Alexander and Rudd, 1981). It also stands for the social value that an individual develops of earns because of the specific social interactions that he or she participates in. In order to ensure that there is a feasible guanxi, mianzi has to be maintained to a certain extend (Yeung and Tung, 1996). If a strong mianzi is earned, then it is possible to control the way in which social networks operate. Mianzi also denotes the public image of any particular individual which is built by the social roles. Hence, it has an important influence on the Chinese social life. If an individual loses mianzi, then it is very difficult to survive in a society. Hence, Mianzi is a very key element of the way in which relationships operate in the Chinese culture. Affect is a type of social resource which plays the role of leverage in interpersonal transactions (Yang, 1994). Affect does not remain confined to money or any tangible things, but it also includes emotions and feelings. In the Chinese culture, where guanxi and exchange of guanxi is important, affect is the factors that are used by the Chinese to maintain or strengthen their guanxi with others (Hwang, 1987). The criteria based on which guanxi exchange happens depends on if the situation is abides by 'affect'. Therefore, the leverage that is necessary to ensure that the social relationships are established, maintained or strengthened also holds a very important place in Chinese culture. According to the research carried out by Park and Lou in 2001, guanxi should be reciprocal. However, in the Chinese culture and society, it is reciprocal in the maintenance of guanxi but is not always in benefits (Jacobs, 1979). In the Western society, reciprocal favours are immediate and short term. However, in Chinese culture, it is long term and is not time bound. While reciprocity is not time bound, it is necessary to have the sense of awareness and commitment; else the individual stands the chance to lose mianzi. According to Tsui and Farh, this behaviour of reciprocity takes root from affect and hence, leading to the utopian network of guanxi. Therefore, the three main characteristics of the social networks that help in the formation of guanxi are deep rooted in Chinese culture. Hence, Chinese culture leads to a strong sense of guanxi. The various traits of Guanxi are closely linked with the way in which Chinese culture operates (Davies et al, 1995). For example, guanxi is a utilitarian concept, where the bonding occurs through an exchange of favours, rather than that of sentiment. Therefore, guanxi is purposely driven with the help of personal interest. A strong sense of reciprocity is associated with Guanxi, because the reputation of a person depends on the way in which they approach the reciprocal obligations. Guanxi is transferable to any given third party through a referral. As it is established between individuals, guanxi is also personal (Davies et al, 1995). It is a long-term construct because it is reinforced through long-term cultivation. Guanxi is maintained with the help of an unspoken commitment and hence, is intangible. Two cultural dimensions that operate in the construct of Guanxi are power distance and collectivism. When it comes to Guanxi, self in relation to the other becomes the key focus rather than self on its own. Hence, this view of an interdependent self becomes a very important aspect of the Chinese culture (Yeung and Tung, 1996). Hofstede (1991), talks about collectivist society where the sense of communitarianism has a much more important role than pursuing one's own interests. Therefore, the concept of collectivist culture forms the building blocks of guanxi as seen in the Chinese society. Power distance talks about the extent to which the less powerful section of the society accepts the fact that power gets distributed in an unequal fashion. The power distance mentioned in the previous section about 'wu-lun' describes the interdependence between the two different parties that are unequal. This power distance that exists in the Chinese culture leads to a strong perception of guanxi. According to Alston (1989), guanxi does not merely refer to the special relationship that exists between two people, but it can also imply the endless exchange of favours. Therefore, it can be described as a strong interpersonal network of reciprocal bonds. Therefore, it is clear that the interpersonal relationship in Chinese society is established by culturally-rooted criteria (Tsui and Farh, 1997). The development of guanxi can be considered the way in which competitive advantage develops and thus, it is a vital source of social capital (Lin, 2007). All these aspects help in explaining how Chinese culture leads to a strong sense of perception of Guanxi. Guanxi and Trust Building In any business environment, there has been an increase in the importance given to trust over the past few years (Svennsson, 2001). Each culture and geographical region has its own definition and dimensions of trust, but the common factor is that trust is a form of reliance on the other party involved (Blois, 1999). In China, has been translated into three forms 'xin' (Luo, 2000), 'xinren' (Chua et al, 2009) and 'xinyong' (Leung et al, 2005) Of all these, xinren is considered to be a strong form of trust. While understanding the different connotations of trust in China, it is necessary to recognize the contextual realm in which trust operates. Hence, trust is associated with various characteristics of Chinese culture. According to the research done by Fang (1999), an interrelationship exists between trust, philosophy, politics, family obedience and corporate governance. Most of the research on guanxi also talks about trust, but they do not examine the construct in detail (Dunfee and Warren, 2001). According to the research done by Lui in 1998, trust is very importnat to cooperation and works as an aid to facilitate any transactions. Child and Mollering (2003), say that it is very important to develop trust building strategies as seen in the relationship context for the Hong Kong based firms that do business in China. Another matter that requires deliberation is how the interplay occurs between trust and guanxi. Over the years, guanxi has undergone a change to adapt and include wider social and business guanxi. The Confucian tenet of building trust based on guanxi has seeped into the business culture of Chinese markets also (Blackman, 2000). In China, trust is not something that is documented or categorized in a legal and formal format to provide protection or impose restrictions. Just like guanxi operates in the society in the manner of an undocumented code, trust also operates in the business markets. The Western business gives a lot of importance to formal contracts and rules, the Chinese have always used trust as a 'social credit rating' (Tong and Yong, 1998). This means that the business community in China do the assessment of risk by understanding the social linkages of the other party involved. Then, a low risk perception is given to any individual/business which already has links with known parties which are credible. This method of approaching business is very different from the way in which it operates in the Western countries. For Xinren to develop and prosper, mutuality is very important. Many people develop misunderstanding between trust and guanxi (Blackman, 2000). The presence of xinren indicates that guanxi already exists. However, guanxi stands only for the relationship or connection and hence, is not deep trust. Therefore, guanxi is the first steps and it provides the opportunity for the establishment of the business connection, but its xinren which ensures that a breach of trust does not happen. As mentioned earlier, Trust in Chinese business context, operates at various levels and therefore, it is important to understand these types of trust. They include goodwill trust, competence trust and calculative trust. In each of these types, guanxi influences the way in which trust operates. In the Chinese business markets, especially when it comes to aspects such as marketing and sales, 'goodwill' trust holds a very prominent place (Das and Teng, 2001). For example, if a sales manager has a higher level of goodwill, then he or she is more likely to understand the point of view of the purchasing manager, resulting in an increased level of trust. Therefore, trust in the goodwill of the sales’ manager can reduce the perception of risk (Wang, 2007). As Guanxi is inherently reciprocal, if the purchasing manager has faith in the fact that the sales manager would reciprocate appropriately, he or she would is much more likely to offer a favour (Hwang, 1987). Guanxi also combines both instrumental and impressive components, hence the outcome of guanxi behaviour reflects not just in giving and receiving of favours, but also has emotional impact. In China, if there are people with 'perceived goodwill', then it is likely that they become friends even among business partners and receive/give more favours (Heide and Wathne, 2006)). Therefore, it can be said that goodwill trust is closely associated with the guanxi behaviour in Chinese business markets. Competence trust is about the assurance that a person has about the competence of the partner involved. In China, there is a high tendency to get social resources with the help of personal connection. Therefore, if any business partner sees that the other partner or a potential supplier has both clout and power, then this business partner would try to show affect and develop a friendship (Su et al, 2009). This is because of the belief in guanxi where people have the notion that help, support and protection is much more likely to come from those people with whom they have an attachment. Therefore, competence trust strongly correlates with guanxi behaviour in Chinese business set up. Calculative trust is defined as the willingness of a party to be vulnerable because of the other parties’ actions or decisions (Noorderhaven, 1996). For example, a party which is dependent on another would worry more about maintaining the long-term friendship, rather than taking actions that are opportunistic (Ganesan, 1994). As opportunism is very risky in such an atmosphere, the parties involved would conduct guanxi behaviour. Therefore, it is clear that all the three types of trust result in the promotion of guanxi behaviour. Competence trust promotes guanxi by ensuring that the anticipated value of repayment is increased. Goodwill trust also promotes guanxi by making sure that the perceived risk associated with any form of default or cheating is reduced. In addition, Calculative trust reduces opportunism and enhances guanxi. However, it would be unfair to assume that guanxi only provides advantages to the business environment. There are numerous other factors that come into play along with guanxi. According to Iyer et al, Guanxi entails both cost are risk. (Iyer et al, 2006). While offering favours can endanger the concern related to repayments, developing friendship can often involve the risk of abuse. As globalization takes place, the markets have opened out and are expanding to global ideas and thought processes. In such an environment, a higher importance is provided to the way in which transactions happen in the western world, as the west is the source of globalization. In such a context, guanxi may often take a back seat. Else, it may also create a situation where the ideas of trust building in Western world may clash with the tenets of guanxi, creating a conflict situation. These situations can create a roadblock if not properly negotiated. Due to this reason, many multinational enterprises often face challenges when they work with their Chinese counterparts (Yang, 2002). However, even though these risks and costs are involved, guanxi is still a very important aspect of entailing trust and its importance cannot be undermined. Modern day commerce cannot operate without the involvement or trust and with guanxi; this trust takes on a whole new gamut of meaning. Unlike Western societies, there is no formal written agreement that talks about trust, but it still operates as a strong point along with business dealings and transactions take place. Hence, it is very important to understand how guanxi operates and enhances the trust in Chinese business markets. Conclusion The article has explained the concept of guanxi and traced its cultural roots. Guanxi is a very important aspect of Chinese society. It has a role to play not just in personal relationships, but the business ties are also influenced because of guanxi. The philosophy of Confucianism leads to a strong perception of guanxi as the principles found in the works of Confucius correlate strongly with the way in which guanxi operates in the society. In addition, Chinese culture also leads to a strong perception of guanxi. Be it day to day association or the way in which the government machinery operated, Guanxi has a major role to play. The cultural construct of collectivism and power distance also cannot escape the power of guanxi. Therefore, it is not just a concept that operates, but in effect, it works as a way of life. Furthermore, guanxi also has a strong correlation to the way in which trust works in Chinese business markets. When it comes to the Chinese business environment, it is very important to understand the way in which guanxi and trust operate because it operates at various levels. On one hand, the influence of guanxi in business trust has many different advantages because it can enhance credibility, result in the development of long-term trust and develop friendships, it can also lead to abuse of power and entail risks. Therefore, it is important to understand the numerous ways in which trust operates in the Chinese business markets, especially in the context of globalization. The fact that markets have become broader and wider poses new challenges to the situation. Hi, I need to edit the reference list properly, and I will like to do that once you give me any feedback from your side please. Thanks References C.F.Yang, “Acritical reviewof the conceptualization of guanxi and renqing,” in C.F.Yang (eds.), The Interpersonal Relationship, Affection, and Trust of the Chinese:Froman InteractionalPerspective, Taipei:Yuan Liou Pulishing Co. (in Chinese), pp. 3–26, 2001a. Y.J. Bian, “Brining strong ties back in: indirect ties, network bridges, and job searches in China,” American Sociological Review, vol. 62, pp. 366–385, 1997. Tung, R. L., & Worm, V. (2001). Network capitalism: The role of human resources in penetrating the China Market. International Journal of Human Resource Management, 12(4): 517–534. Alston, J. P. (1989), ‘Wa, Guanxi, and Inhwa: Managerial Principles in Japan, China, and Korea’, Business Horizons, March–April, 26–31. Jacobs, L., G. Guopei and P. Herbig (1995), ‘Confucian Roots in China: A Force for Today’s Business’, Management Decisions, 33, 10, 29–34. A.Y. King, “Kuan-his and network building: A sociological interpretation,” Daedalus, vol. 120, pp. 63–84, 1991. G. Redding and G.Y.Y. Wong, “The psychology of Chinese organizational behavior,” in M.H. Bond (eds.), The Psychology of the Chinese People. New York: Oxford University Press, pp. 213–266, 1986. X.T. Fei, From the Soil: The Foundations of Chinese Society. Berkeley: University of California Press, 1992/1947. Han, Y. and Y. Altman: 2009, ‘Supervisor and Subordinate Guanxi: A Grounded Investigation in the People’s Republic of China’’, Journal of Business Ethics 88, 91– 105. Gold, T., D. Guthrie and D. Wank: 2002, ‘An Introduction to the Study of Guanxi’, in T. Gold, D. Guthrie and D. Wank (eds.), Social Connections in China: Institutions, Culture, and the Changing Nature of Guanxi (Cambridge University Press, New York), pp. 3–20. Hong, J. and Y. Engestrom: 2004, ‘Changing Principles of Communication Between Chinese Managers and Workers: Confucian Authority Chains and Guanxi as Social Networking’, Management Communication Quarterly 17(May), 552–586. Wang, J., G. G. Wang, W. E. A. Ruona and J. W. Rojewski: 2005, ‘Confucian Values and the Implications for International HRD’, Human Resources Development International 8(3), 311–326 Yang, M. M.: 1994, Gifts, Favors, Banquets: The Art of Social Relationships in China (Cornell University Press, Ithaca). Kipnis, A. B.: 1997, Producing Guanxi: Sentiment, Self, and Subculture in a North China Village (Duke University Press, Durham, USA). Alexander, C. N. and J. Rudd: 1981, ‘Situated Identities and Response Variables’, in J. T. Tedeschi (ed.), Impression Management Theory and Social Psychological Research (Academic Press, New York), pp. 83–103. Yeung, I. Y. and R. L. Tung: 1996, ‘Achieving Business Success in Confucian Societies: The Importance of Guanxi (Connections)’, Organization Dynamics 25(2), 54–66. Hwang, E. R.: 1987, ‘Face and Favor: The Chinese Power Game’, American Journal of Sociology 92(4), 35– 41. Park, S. H. and T. Luo: 2001, ‘Guanxi and Organizational Dynamic: Organizational Networking in Chinese Firms’, Strategic Management Journal 22, 455–477. Jacobs, B. J.: 1979, ‘The Concept of Guanxi and Social Politics in a Rural Chinese Cultural Setting’, in S. L. Greenblatt, R. W. Wilson and A. A. Wilson (eds.),Social Interaction in Chinese Society (Praeger, New York), pp. 209–236. Alston, J. P.: 1989, ‘Wa, Guanxi, and Inhwa: Managerial Principles in Japan, China, and Korea’, Business Horizous 4, 26–31. Tsui, A. S. and J. L. Farh: 1997, ‘Where Guanxi Matters: Relational Demography and Guanxi in the Chinese Context’, Work and Occupations 24, 56–79. Lin, N.: 2007, Social Capital and the Labor Market: Transforming Urban China (Cambridge University Press, New York). Davies, H., T. K. P. Leung, S. T. K. Luk and Y.-H. Wong (1995), ‘The Benefits of “Guanxi”’, Industrial Marketing Management, 24, 3, 207–14. Hofstede, G. (1991), Cultures and Organizations: Software of the Mind (New York: McGraw-Hill). Yeung, I. Y. M. and R. L. Tung (1996), ‘Achieving Business Success in Confucian Societies: The Importance of Guanxi (Connections)’, Organizational Dynamics, Autumn, 54–65. Svensson, G., 2001. Extending trust and mutual trust in business relationships towards a synchronised trust chain in marketing channels. Management decision, 39 (6), 431–440. Luo, Y., 2000. Guanxi and business. Hackensack, NJ: World Scientific Publishing. Chua, R., Morris, W., and Ingram, P., 2009. Guanxi vs networking: distinctive configurations of affect- and cognition-based trust in the networks of Chinese vs American managers. Journal of international business studies, 40 (3), 490–508. Leung, T., Lai, K., Chan, R., and Wong, Y., 2005. The roles of xinyong and guanxi in Chinese relationship marketing. European journal of marketing, 39 (5/6), 528–559. Fang, T., 1999. Chinese business negotiating style. Thousand Oaks, CA: Sage. Dunfee, T. and Warren, D., 2001. Is guanxi ethical? A normative analysis of doing business in China. Journal of business ethics, 32 (3), 191–204. Child, J. and Mo?llering, G., 2003. Contextual confidence and active trust development in the Chinese business environment. Organizational science, 14 (1), 69–80. Lui, T., 1998. Trust and Chinese business behaviour. Competition & change, 3 (3), 335–357. Blackman, C., 2000. China business: the rules of the game. Crows Nest, NSW: Allen and Unwin Tong, C. and Yong, P., 1998. Guanxi bases, xinyong and Chinese business networks. British journal of sociology, 49 (1), 75–96. Das, T. K., & Teng, Bing S. (2001). Trust, control and risk in strategic alliances: An integrated framework. Organization Studies, 22(2), 251?283. Wang, Cheng Lu. (2007). Guanxi vs. relationship marketing: Exploring underlying differences. Industrial Marketing Management, 36(1), 81?86. Hwang, K. (1987). Face and favor: the Chinese power game. The American Journal of Sociology, 92(4), 944?974. Heide, Jan B., & Wathne, Kenneth H. (2006, July). Friends, businesspeople, and relationship roles: A conceptual framework and a research agenda. Journal of Marketing, 70, 90?103. Ganesan, Shankar (1994, April). Determinants of long-term orientation in buyer–seller relationships. Journal of Marketing, 58, 1?19. Noorderhaven, N. G. (1996). Opportunism and trust in transaction cost economics. In J. Groenewegen (Ed.), Transaction cost economics and beyond (pp. 105?128). Boston: Kluwer Academic Publishers. Su, C., Yang, Z., Zhuang, G., Zhou, N., & Dou, W. (2009). Interpersonal influence as an alternative channel communication behavior in emerging markets: The case of China. Journal of International Business Studies, 40(4), 668?689. Yang, M.M., 2002. The resilience of guanxi and its new developments: a critique of some new guanxi scholarship. China Quarterly (170), 459–476. Read More