Implications Of Guanxi And Socialization

Chinese cultural traits have been widely seen as a source of competitive advantage and a catalyst for China’s future sustainable growth. Guanxi is a fundamental part of Chinese society and originates from Confucius 's principles of structures (Kipnis, 1997). Guanxi when used in business, plays an integral part of day to day interactions in building and maintaining interpersonal as well as business to business relationships with counterparts at different levels (Styles and Ambler, 2003 and Yen and Barnes, 2011).
The closest English synonyms to guanxi are ‘connections’ and ‘relationships’, although neither of these words captures the broader cultural implications that guanxi represents. Guanxi is formed of three fundamental elements; ganqing, renqing and xinren which refer to the concepts of affection, exchange of favours and interpersonal trust, respectively (Kipnis, 1997 and Yen et al., 2011). As a result, guanxi is a collection of social networks and relationships that help facilitate business and other …show more content…
The results indicated that entrepreneurial social capital is beneficial to information accessibility and resource availability. The results further find that an individual’s family ties directly improve both information accessibility and resource availability, demonstrating how family members facilitate new venture activities more than merely by providing labour or affective support. Moreover, business ties and family ties were proven to considerably enhance an entrepreneurs ' ability to acquire useful information. The study also found that an individual’s governmental ties aided in their business ventures substantially as governmental ties allow the entrepreneurs greater resource availability (Wang & Lestari,