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The role of guanxi networks in the performance of women-led firms in China

Jonathan Matthew Scott (Teesside University Business School, Teesside University, Middlesbrough, UK)
Richard T. Harrison (Queen's University Management School, Queen's University Belfast, Belfast, UK)
Javed Hussain (Business School, Birmingham City University, Birmingham, UK)
Cindy Millman (Business School, Birmingham City University, Birmingham, UK)

International Journal of Gender and Entrepreneurship

ISSN: 1756-6266

Article publication date: 4 March 2014

680

Abstract

Purpose

This exploratory study aims to examine how knowledge acquired via guanxi (networks and connections) is enabling women in China to overcome a number of significant barriers and challenges in order to start and grow successful businesses.

Design/methodology/approach

The authors undertook two in-depth interviews to qualitatively investigate the use of guanxi as a means of overcoming various barriers faced by Chinese women in establishing and growing their businesses.

Findings

The findings suggest that family background (and, in particular, support from parents and spouses), experience, training, education and finance are key success factors influencing the performance of women-led firms in China. The experiences of the two entrepreneurs in the study demonstrate the importance of mentors in helping to develop a woman's business acumen and providing the right contacts to help overcome potential barriers to developing a successful business.

Research limitations/implications

While this study provides a useful first step to better understanding the role of guanxi networks in supporting women-led ventures in China, further research is needed to test the generalizability of the findings.

Originality/value

This study contributes to the limited prior research focusing on the important role of guanxi networks in assisting Chinese women to successfully launch and grow new ventures.

Keywords

Acknowledgements

An earlier version of this chapter was published in the International Research Handbook on Successful Women Entrepreneurs (Scott, J.M., Hussain, J., Harrison, R.T. and Millman, C. (2010), “China”, in Fielden, S. and Davidson, M. (Eds), International Research Handbook on Successful Women Entrepreneurs, Edward Elgar, Cheltenham). Material reproduced here with kind permission from Edward Elgar, Cheltenham. The authors are grateful to the anonymous reviewers at the Australian Centre for Entrepreneurship Research Exchange (ACERE) and Diana International Conference, Freemantle, Western Australia, 31 January-2 February 2012 and the European Group on Organization Studies (EGOS) colloquium, Helsinki, Finland, 4-7 July 2012 for their constructive comments; the Chinese women entrepreneurs who agreed to participate in this study; and the student who helpfully interviewed the Chinese women entrepreneurs and translated the interviews.

Citation

Matthew Scott, J., T. Harrison, R., Hussain, J. and Millman, C. (2014), "The role of guanxi networks in the performance of women-led firms in China", International Journal of Gender and Entrepreneurship, Vol. 6 No. 1, pp. 68-82. https://doi.org/10.1108/IJGE-03-2013-0014

Publisher

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Emerald Group Publishing Limited

Copyright © 2014, Emerald Group Publishing Limited

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