Guanxi or interpersonal relationships is one of the major dynamics of Chinese society. A pervasive part of the Chinese business world for the last few centuries, it binds literally millions of Chinese firms into a social and business web. Any business in this society, including local firms and foreign investors and marketers, inevitably faces guanxi dynamics. In China’s new, fast-paced business environment, guanxi has been more entrenched than ever, heavily influencing Chinese social behavior and business practice. However, as in other emerging economies, corruption in China is becoming more rampant, which makes guanxi and corruption often intermingled. As such, business executives need to place greater caution today in the practice and process of guanxi development and utilization.

Due to the growing academic and practical interest in guanxi, this second edition provides a timely update to the systematic and vigorous exploration of the various social, economic, cultural, and business issues relating to the complex concept and practice of guanxi.

Contents:

• Definition, Principles, and Philosophy of Guanxi
• Economic Perspective of Guanxi
• Guanxi and Firm Performance
• Organizational Dynamics and Guanxi
• Guanxi-Based Business Strategies
• Foreign Businesses and Guanxi
• Guanxi, Corruption and Governance
• Practical Guidelines to Guanxi Cultivation

Reviews of the First Edition

“It is a timely book in its attempt to provide clarity to the concept, offer a conceptual analysis of the phenomenon, and provide practical ideas to managers … I consider the book to be an excellent primer for managers, especially Westerners, who wish to have a basic lesson on the concept of guanxi and related phenomena.”

“As a guide to current practice, this book is good value. It contains a wealth of illustrative stories and has useful summary diagrams of the main ideas. It will be of much use to practitioners.”