Title: Chinese guanxi as network building: the emergence of the new institutional environment in China

Authors: Rick Molz, Xiaoyun Wang

Addresses: Department of Management, John Molson School of Business, Concordia University, 1455 de Maisonneuve Blvd. West, Montreal, H3G 1M8, Canada. ' Department of Business Administration, I.H. Asper School of Business, University of Manitoba, 628 Drake Centre, Winnipeg, Manitoba, R3T 5V4, Canada

Abstract: This paper examines the role of guanxi in the emergence of the Chinese institutional environment, institutional structure and business environment. In China, the institutional environment, institutional structure and resulting business environment are rapidly evolving and are not yet stable or predictable. Under these circumstances, guanxi is important to business executives in enacting successful business exchanges in the face of uncertainty and unpredictability. By using institutional theory and negotiated order theory, we argue that the use of guanxi will improve enterprise performance and shape the emerging institutional environment and resulting business environment.

Keywords: China; guanxi; institutional environment; business environment; institutional theory; negotiated order theory; organisational performance; performance improvement; institutional structure; network building; relationships.

DOI: 10.1504/GBER.2006.008776

Global Business and Economics Review, 2006 Vol.8 No.1/2, pp.44 - 59

Published online: 24 Jan 2006 *

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