When does Guanxi matter? Issues of capitalization and its dark sides

Journal of Marketing

Volumn 72, Issue 4, 2008, Pages 12-28

  Gu, Flora F ^a   Hung, Kineta ^b   Tse, David K ^c  

^a HONG KONG POLYTECHNIC UNIVERSITY   (Hong Kong)

^b HONG KONG BAPTIST UNIVERSITY   (Hong Kong)

^c UNIVERSITY OF HONG KONG   (Hong Kong)

Author keywords

China market; Guanxi; Personal connections; Social capital theory; Transitional economy

Indexed keywords

EID: 47849106317     PISSN: 00222429     EISSN: None     Source Type: Journal    
DOI: 10.1509/jmkg.72.4.12     Document Type: Article

References (73)

1. Adler, Paul S. and Seok-Woo Kwon (2002), "Social Capital: Prospects for a New Concept," Academy of Management Review, 27 (1), 17-40.
2. Ambler, Tim, Chris Styles, and Xiucun Wang (1999), "The Effect of Channel Relationships and Guanxi on the Performance of Inter-Province Export Ventures in the People's Republic of China," International Journal of Research in Marketing, 16 (1), 75-87.
3. Anderson, James C. (1987), "An Approach for Confirmatory Measurement and Structural Equation Modeling of Organizational Properties," Management Science, 33 (4), 525-41.
4. _ and David W. Gerbing (1988), "Structural Equation Modeling in Practice: Review and Recommended Two-Step Approach," Psychological Bulletin, 103 (3), 411-23.
5. Armstrong, J.S. and T.S. Overton (1977), "Estimating Nonresponse Bias in Mail Surveys," Journal of Marketing Research, 16 (August), 396-402.
6. Bagozzi, Richard P., Youjae Yi, and Lynn W. Phillips (1991), "Assessing Construct Validity in Organizational Research," Administrative Science Quarterly, 36 (1), 421-58.
7. Barney, Jay (1991), "Firm Resources and the Theory of Competitive Advantage," Journal of Management, 17 (1), 99-120.
8. Bergen, Mark, Shantanu Dutta, and Orville C. Walker Jr. (1992), "Agency Relationships in Marketing: A Review of the Implications and Applications of Agency and Related Theories," Journal of Marketing, 56 (July), 1-24.
9. Boisot, Max and John Child (1996), "From Fiefs to Clans and Network Capitalism: Explaining China's Emerging Economic Order," Administrative Science Quarterly, 41 (4), 600-628.
10. Bollen, Kenneth A. (1989), Structural Equations with Latent Variables. New York: John Wiley & Sons.
11. Bond, Michael (1991), Beyond the Chinese Face. Hong Kong: Oxford University Press.
12. _, ed. (1996), Handbook of Chinese Psychology. Hong Kong: Oxford University Press.
13. Buckley, Peter J. and Mark C. Casson (1988), "A Theory of Cooperation in International Business," in Cooperative Strategies in International Business, Farok J. Contractor and Peter Lorange, eds. New York: Lexington Books, 31-53.
14. Burt, Ronald S. (1997), "The Contingent Value of Social Capital," Administrative Science Quarterly, 42 (June), 339-65.
15. Chang, Hui-Ching and G. Richard Holt (1991), "More than Relationship: Interaction and the Principle of Kuan-his," Communication Quarterly, 39 (3), 251-71.
16. Child, John and David K. Tse (2001), "China's Transition and Its Implications for International Business," Journal of International Business Studies, 32 (1), 5-21.
17. Coleman, James S. (1988), "Social Capital in the Creation of Human Capital," American Journal of Sociology, 94, 95-120.
18. Davies, Howard, Thomas K.P. Leung, Sherriff T.K. Luk, and Yiuhing Wong (1995), "The Benefits of 'Guanxi': The Values of Relationships in Developing the China Market," Industrial Marketing Management, 24 (3), 207-214.
19. _ and Peter Walters (2004), "Emergent Patterns of Strategy, Environment and Performance in a Transition Economy," Strategic Management Journal, 25 (4), 347-64.
20. Doney, Patricia M. and Joseph P. Cannon (1997), "An Examination of the Nature of Trust in Buyer-Seller Relationships," Journal of Marketing, 61 (April), 35-51.
21. Dwyer, F. Robert, Paul H. Schurr, and Sejo Oh (1987), "Developing Buyer-Seller Relationships," Journal of Marketing, 51 (April), 11-27.
22. The Economist Intelligence Unit (2004), China Hand: The Complete Guide to Doing Business in China. London: The Economist Intelligence Unit.
23. Frazier, Gary L. (1983), "Interorganizational Exchange Behavior in Marketing Channels: A Broadened Perspective," Journal of Marketing, 47 (Fall), 168-78.
24. Fukuyama, Francis (1995), Trust: The Social Virtues and the Creation of Prosperity. New York: The Free Press.
25. Gargiulo, Martin and Mario Benassi (1997), The Dark Side of Social Capital. New York: Lazarsfeld Center at Columbia University.
26. Gold, Thomas B., Doug Guthrie, and David L. Wank, eds. (2002), Social Connections in China: Institutions, Culture, and the Changing Nature of Guanxi. New York: Cambridge University Press.
27. Granovetter, Mark (1985), "Economic Action and Social Structure: The Problem of Embeddedness," American Journal of Sociology, 91 (3), 481-510.
28. Guthrie, Douglas (1998), "The Declining Significance of Guanxi in China's Economic Transition," The China Quarterly, 154 (June), 31-62.
29. Hall, Edward T. (1959), The Silent Language. New York: Doubleday.
30. Heide, Jan B. (1994), "Interorganizational Governance in Marketing Channels," Journal of Marketing, 58 (January), 71-85.
31. _ and George John (1992), "Do Norms Matter in Marketing Relationships?" Journal of Marketing, 56 (July), 32-44.
32. Hoskisson, Robert E., Lorraine Eden, Chung M. Lau, and Mike Wright (2000), "Strategy in Emerging Economies," Academy of Management Journal, 43 (3), 249-67.
33. Hung, Kineta, Flora F. Gu, and David K. Tse (2005), "Improving Media Decisions in China: A Targetability and Cost-Benefit Analysis," Journal of Advertising, 34 (1), 49-65.
34. Hwang, Kwang-kuo (1987), "Face and Favor: The Chinese Power Game," American Journal of Sociology, 92 (4), 944-74.
35. Jap, Sandy D. and Erin Anderson (2003), "Safeguarding Interorganizational Performance and Continuity Under Ex Post Opportunism," Management Science, 49 (12), 1684-1701.
36. Jaworski, Bernard J. and Ajay K. Kohli (1993), "Market Orientation: Antecedents and Consequences," Journal of Marketing, 57 (July), 53-70.
37. Joy, Annamma (2001), "Gift Giving in Hong Kong and the Continuum of Social Ties," Journal of Consumer Research, 28 (September), 239-56.
38. Keep, William W., Stanley C. Hollander, and Roger Dickinson (1998), "Forces Impinging on Long-Term Business-to-Business Relationships in the United States: An Historical Perspective," Journal of Marketing, 62 (April), 31-45.
39. Lau, Chung Ming, David K. Tse, and Nan Zhou (2002), "Institutional Forces and Organizational Culture in China: Effects on Change Schemas, Firm Commitment and Job Satisfaction," Journal of International Business Studies, 33 (3), 533-50.
40. Law, Kenneth S., David K. Tse, and Nan Zhou (2003), "Does Human Resource Management Matter in an Emerging Economy? The Example of the PRC," Journal of International Business Studies, 34 (3), 255-65.
41. Li, Haiyang and Kwaku Atuahene-Gima (2002), "The Adoption of Agency Business Activity, Product Innovation, and Performance in Chinese Technology Ventures," Strategic Management Journal, 23 (6), 469-90.
42. Lindsay, Cindy P. and Bobby L. Dempsey (1983), "Ten Painfully Learned Lessons About Working in China: The Insights of Two American Behavioral Scientists," Journal of Applied Behavioral Science, 19 (3), 265-76.
43. Lovett, Steve, Lee C. Simmons, and Raja Kali (1999), "Guanxi Versus the Market: Ethics and Efficiency," Journal of International Business Studies, 30 (2), 231-48.
44. Luo Yadong (1997), "Guanxi and Performance of Foreign-Invested Enterprises in China: An Empirical Enquiry," Management International Review, 37 (1), 51-70.
45. _ (2003), "Industrial Dynamics and Managerial Networking in an Emerging Market: The Case of China," Strategic Management Journal, 24 (13), 1315-27.
46. Madhavan, Ravindranath, Balaji R. Koka, and John E. Prescott (1998), "Networks in Transition: How Industry Events Reshape Interfirm Relationships," Strategic Management Journal, 19 (5), 439-59.
47. Merton, Robert K. (1936), "The Unanticipated Consequences of Purposive Social Action," American Sociological Review, 1 (6), 894-904.
48. Moorman, Christine and Rebecca J. Slotegraaf (1999), "The Contingency Value of Complementary Capabilities in Product Development," Journal of Marketing Research, 36 (May), 239-57.
49. Morgan, Robert M. and Shelby D. Hunt (1994), "The Commitment-Trust Theory of Relationship Marketing," Journal of Marketing, 58 (July), 20-38.
50. Nahapiet, Janine and Sumantra Ghoshal (1998), "Social Capital, Intellectual Capital, and the Organizational Advantage," Academy of Management Review, 23 (2), 242-66.
51. Narver, John C. and Stanley F. Slater (1990), "The Effect of a Market Orientation on Business Profitability," Journal of Marketing, 54 (October), 20-35.
52. Nayyar, P.R. and K.A. Bantel (1994), "Competitive Agility: A Source of Competitive Advantage Based on Speed and Variety," in Advances in Strategic Management, Vol. 10, P. Shrivastava, A. Huff, and J. Dutto, eds. Greenwich: CT: JAI Press, 193-222.
53. North, Douglas (1990), Institutions, Institutional Change and Economic Performance. Cambridge, UK: Cambridge University Press.
54. Park, Seung Ho and Yadong Luo (2001), "Guanxi and Organizational Dynamics: Organizational Networking in Chinese Firms," Strategic Management Journal, 22 (5), 455-77.
55. Peng, Mike W. and Peggy Sue Heath (1996), "The Growth of the Firm in Planned Economies in Transition: Institutions, Organizations, and Strategic Choice," Academy of Management Review, 21 (2), 492-528.
56. _ and Yadong Luo (2000), "Managerial Ties and Firm Performance in a Transition Economy: The Nature of a Micro-Macro Link," Academy of Management Journal, 43 (3), 486-501.
57. Porter, Michael E. (1991), "Towards a Dynamic Theory of Strategy," Strategic Management Journal, 12 (Winter), 95-117.
58. Portes, Alejandro (1998), "Social Capital: Its Origins and Applications in Modern Sociology," Annual Review of Sociology, 24 (August), 1-24.
59. _ and Patricia Landolt (1996), "The Downside of Social Capital," American Prospect, 26 (May-June), 18-23.
60. Putnam, Robert D. (2000), Bowling Alone: The Collapse and Revival of American Community. New York: Simon & Schuster.
61. Scott, W. Richard (1995), Institutions and Organizations. Thousand Oaks, CA: Sage Publications.
62. Skarmeas, Dionisis, Constantine S. Katsikeas, and Bodo B. Schlegelmilch (2002), "Drivers of Commitment and Its Impact on Performance in Cross-Cultural Buyer-Seller Relationships: The Importer's Perspective," Journal of International Business Studies, 33 (4), 757-83.
63. Tsang, Eric W.K. (1998), "Can Guanxi Be a Source of Sustained Competitive Advantage for Doing Business in China," Academy of Management Executive, 12 (2), 64-72.
64. Uzzi, Brian (1997), "Social Structure and Competition in Interfirm Networks: The Paradox of Embeddedness," Administrative Science Quarterly, 42 (1), 35-67.
65. Vanhonacker, Wilfried R. (2004), "Guanxi Networks in China," China Business Review, 31 (3), 48-53.
66. Vaughan, Diane (1999), "The Dark Side of Organizations: Mistake, Misconduct, and Disaster," Annual Review of Sociology, 25 (August), 271-305.
67. Walder, Andrew G. (1995), "Local Governments as Industrial Firms: An Organizational Analysis of China's Transition Economy," American Journal of Sociology, 101 (2), 263-301.
68. Wathne, Kenneth H. and Jan B. Heide (2004), "Relationship Governance in a Supply Chain Network," Journal of Marketing, 68 (January), 73-89.
69. Wellman, Barry (1988), "Structural Analysis: From Method and Metaphor to Theory and Substance," in Social Structures: A Network Approach, Barry Wellman and S.D. Berkowitz, eds. Cambridge, UK: Cambridge University Press, 19-61.
70. Williamson, Oliver E. (1975), Market and Hierarchies. New York: The Free Press.
71. Xin, Katherine R. and J.L. Pearce (1996), "Guanxi: Connections as Substitutes for Formal Institutional Support," Academy of Management Journal, 39 (6), 1641-58.
72. Yang, Mayfair Mei-Hui (1994), Gifts, Favors and Banquets: The Art of Social Relationships in China. New York: Cornell University Press.
73. Zhang, Chun, S. Tamer Cavusgil, and Anthony S. Roath (2003), "Manufacturer Governance of Foreign Distributor Relationships: Do Relational Norms Enhance Competitiveness in the Export Market?" Journal of International Business Studies, 34 (6), 1-17.