Can new corruption legislation drive guanxi out of business? - Western and Chinese Multinational managers’ perceptions

Lyubov, Berweger, Hack-polay, Dieu and Rahman, Mahfuzur (2020) Can new corruption legislation drive guanxi out of business? - Western and Chinese Multinational managers’ perceptions. International Journal of Business Governance and Ethics . ISSN 1741-802X

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Can new corruption legislation drive guanxi out of business? - Western and Chinese Multinational managers’ perceptions
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Abstract

The study examined executives’ attitude to and perception of guanxi and the ethical ramifications of guanxi practices in relation to Western values and ethics. The research involved semi-structured interviews with twelve high level Western and Chinese multinational executives. A contribution of the paper is to highlight that, though it challenges some deeply rooted Western stances on ethical values, guanxi remains a necessary passport to access Chinese business. The executives believe that the tenacity of guanxi is associated with the ongoing strength of Chinese culture and economy. Thus, while some Western executives may feel uneasy about guanxi in modern business, their Chinese counterparts do not perceive guanxi as contravening ethics. The managerial implications for organisations centre on the need to assess guanxi as social capital. The research contributes to fill empirical gaps related to using Guanxi as social capital to enhance international business.

Keywords:Guanxi, HRM, business negotiation, ethics, Chinese market, social capital
Subjects:N Business and Administrative studies > N200 Management studies
Divisions:Lincoln International Business School
ID Code:40740
Deposited On:27 Apr 2020 15:20

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