The ethics and positioning of guanxi in China

Abstract

Guanxi has been a popular research topic but commentators do not have consensus on its ethical and positioning aspects. Attempts to tackle these two aspects and the problem of guanxi and favor according to a survey in a Sino‐Hong Kong business negotiation environment. Respondents perceived that there are four dimensions within the guanxi concept, i.e. opportunism, dynamism, business interaction, and protectionism. According to these four dimensions, they can be segmented into three clusters, i.e. the preserver, the wiser, and the braver. Different clusters have different psychological approaches to Sino‐foreign negotiation but there is no difference in their perceptions towards the relationship between guanxi and favor. Concludes that guanxi is basically ethical and it can be used as a positioning strategy in China. However, there is some evidence to suggest that guanxi and favor are sensitive and situation‐specific, but further research is needed to confirm these claims.