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Article
Publication date: 27 August 2019

Michelle Sitong Chen and Gabriel Eweje

The purpose of this paper is to examine empirically how managers establish ethical guanxi (interpersonal relationships) with their business partners to prevent potential ethical

Abstract

Purpose

The purpose of this paper is to examine empirically how managers establish ethical guanxi (interpersonal relationships) with their business partners to prevent potential ethical incidences in Chinese and Western business contexts.

Design/methodology/approach

The present study is guided by a qualitative, abductive approach and draws on in-depth interviews with ten senior managers in five urban New Zealand organisations.

Findings

The results point out that guanxi (interpersonal relationships) purely working through renqing (reciprocity) is not sustainable, because it perpetuates a never-ending cycle of favours, once exchanging favours stopped or disappeared, then business relationships dwindled. To establish an ethical guanxi model, the authors found that xinyong (trust) is the foundation, and its enlargement stimulates lijie (empathy) that transfers pure business relationships to a genuine friendship which enhances ethical decision-making. They also posit that once managers are embodied with lijie, then they will have the virtue of ren to behave like junzi (ideal Confucian ethical person) whose business actions tend to be intrinsically guided by a sense of obligation to do something right that will work for diverse stakeholders’ interests, for the prosperity of organisations and society.

Practical implications

This study suggests that managers should take Confucian virtues of xinyong (trust) and lijie (empathy), because they will trigger ren (humanity) as an intrinsic value. In this way, it is more likely for them to become junzi (ideal Confucian ethical person) whose business actions are intrinsically guided by a sense of obligation to do something right that benefits various stakeholders, organisations and society.

Originality/value

This study contributes to the extant literature on preventing ethical incidents of guanxi (interpersonal relationships) by drawing a framework of ethical guanxi, which is built on Confucian virtues of xinyong (trust), lijie (empathy) and ren (humanity). Further, this paper strongly suggests that companies should educate their staff to become more humane to make moral decisions in daily management practice.

Details

Corporate Governance: The International Journal of Business in Society, vol. 20 no. 1
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 20 December 2022

Lilei Wang, Yumei Dang, Shufeng (Simon) Xiao and Xing'an Xu

By adopting learning theory and a guanxi perspective, this study aims to investigate the effects of interpersonal guanxi (interpersonal networks or connections) and relationship

Abstract

Purpose

By adopting learning theory and a guanxi perspective, this study aims to investigate the effects of interpersonal guanxi (interpersonal networks or connections) and relationship learning on companies’ business performance when operating in a large emerging market.

Design/methodology/approach

Using a sample of 294 sales managers and salespeople in the Chinese hotel sector, the authors empirically test the authors' arguments through a structural equation modeling (SEM) approach.

Findings

The authors' findings indicate that strong interpersonal guanxi tends to generate more positive business performance. Furthermore, the authors find that relationship learning plays a mediating role in the association between interpersonal guanxi and hotel companies’ business performance in a Chinese context. Finally, the authors empirically explore the moderating effect of inter-firm dependence on the contribution of interpersonal guanxi to relationship learning. Findings demonstrate that this effect varies significantly based on inter-firm dependence, with interpersonal guanxi exhibiting a greater positive impact if such dependence is high.

Originality/value

This study enriches our understanding of interpersonal guanxi and of how companies can enhance the companies' business performance in an emerging market context.

Details

International Journal of Emerging Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1746-8809

Keywords

Open Access
Article
Publication date: 23 February 2022

Morris Mthombeni and Amon Chizema

This study aims to analyse trust and distrust as specific board processes between the board chair and chief executive officer (CEO) aimed at reducing corporate governance (CG…

2138

Abstract

Purpose

This study aims to analyse trust and distrust as specific board processes between the board chair and chief executive officer (CEO) aimed at reducing corporate governance (CG) risk partially mitigated by regnant CG mechanisms. This study incorporates the nascent literature that posits trust and distrust as two separate constructs that co-exist simultaneously to recasts them in the CG domain.

Design/methodology/approach

This paper analysed data from 20 in-depth interviews conducted with board representatives at four financial services firms in The Netherlands, South Africa and Zimbabwe.

Findings

This paper found that the foundational bases of the chair–CEO relationship determine how trust and distrust are apportioned between them, which impacts board dynamics. This paper also confirmed that the constructs of trust and distrust are separate thus do not sit at opposite ends of a single continuum. Finally, this paper found that high levels of task-based distrust (as opposed to mistrust) are necessary during periods of organisational distress and more effective if there are also high levels of relational trust between the parties.

Originality/value

This paper empirically examines the relationship between trust and distrust in CEO–chair dyadic relationships in multiple companies across multiple countries. This paper also introduces the concept of tempered trust, which is defined as interpersonal trust tempered by task-based distrust, recasting the traditional characterisation of trust and distrust in the CG domain, thereby making a useful contribution to the literature on board dynamics.

Details

Corporate Governance: The International Journal of Business in Society, vol. 22 no. 5
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 7 August 2023

Long Le Hoang Nguyen

This study aims to examine the impact of ethical leadership on the extra-role behavior toward individuals of employees in the public sector. In addition, the study examines the…

Abstract

Purpose

This study aims to examine the impact of ethical leadership on the extra-role behavior toward individuals of employees in the public sector. In addition, the study examines the mediating roles of supervisor-subordinate guanxi and public service motivation.

Design/methodology/approach

Research data were collected from 222 public servants in local government, Vietnam. Study using partial least square SEM (PLS-SEM) method performed by SmartPLS 3.2.9.

Findings

Ethical leadership has a direct impact on OCBI. In turn, supervisor-subordinate guanxi holds mediating role in linking the relationship between ethical leadership and OCBI. Public service motivation mediates nexuses between ethical leadership, supervisor-subordinate guanxi and OCBI.

Research limitations/implications

To encourage public servants to engage in interpersonal citizenship behaviors, leaders must focus on fostering an ethical climate in the workplace by acting as an ethical model and encouraging ethical standards in daily work.

Originality/value

The study provides new insights on the mediating role of public service motivation, guanxi from the perspective of the leader's ethical aspect.

Details

International Journal of Public Leadership, vol. 19 no. 3
Type: Research Article
ISSN: 2056-4929

Keywords

Article
Publication date: 5 August 2021

Muzammal Ahmad Khan

This study aims to examine the experiences of UK higher education students and the impact that emergency-imposed changes had on their learning, teaching and assessment (LTA…

4916

Abstract

Purpose

This study aims to examine the experiences of UK higher education students and the impact that emergency-imposed changes had on their learning, teaching and assessment (LTA) during the lockdown. It reflects on the views of students on how these changes impacted their education and personal circumstances. It makes suggestions, based on student observations, on how educators might support students’ LTA learning experiences more effectively.

Design/methodology/approach

The study uses an anonymous online questionnaire, imposed by lockdown and closure of universities, to gather the views of HE students across the UK on how COVID-19 and lockdown affected their education and personal circumstances. Using a cross-sectional study, participants were asked to complete several questions, providing quantitative and qualitative data which is analysed for the study. A total of 349 participants took part in the questionnaire and data were analysed descriptively.

Findings

Key findings suggest that the use of online virtual classrooms as a substitute for traditional face-to-face LTA has its positives and its negatives. The most significant positives are the “flexible assessments” and “digital content” and, in contrast, one of the significant drawbacks is the lack of interactions, this being true for both male and female students. However, as compared to females, males found to be missing “the campus life” more during the lockdown. Finally, the majority of student felt that there was a lack of support from the university and teaching staff during the lockdown. Universities’ governance must take control of how this issue is driven forward and learn from the experience of students.

Originality/value

The study makes three contributions: firstly, using students’ views to open a fresh debate on LTA approaches during the pandemic; secondly, examining the impact on student experiences due to the changes introduced because of lockdown; and finally, suggesting strategies to be implemented by HE management based on the opinions of participating students.

Details

Corporate Governance: The International Journal of Business in Society, vol. 21 no. 6
Type: Research Article
ISSN: 1472-0701

Keywords

Article
Publication date: 26 August 2014

Ying Han Fan, Gordon Woodbine and Glennda Scully

The purpose of this study is to determine how Western business practitioners, specifically Australian accounting professionals, identify with the Chinese value concept of guanxi

Abstract

Purpose

The purpose of this study is to determine how Western business practitioners, specifically Australian accounting professionals, identify with the Chinese value concept of guanxi and the impact of their perceptions of guanxi on their ethical decision-making. This objective is predicated by a belief that aspects of guanxi are similar to the Western concepts of social networking and would be identified by practitioners as an organizational process providing positive benefits to those associated with its application. Further, it is anticipated that concepts of guanxi influence the way Australian accountants form ethical judgements and intentions, precursors to acceptable moral behaviour.

Design/methodology/approach

A cross-sectional questionnaire based on a survey of 111 usable Australian accounting professionals was completed during 2012. A confirmatory factor analysis was used to validate each construct of guanxi before a path analysis was performed.

Findings

Australian accounting professionals associate well with the favour-seeking aspects of guanxi, suggesting an affiliation with Western concepts of social networking. Both groups (i.e. public accountants and private accountants) reject rent-seeking guanxi as clearly unethical. Rent-seeking guanxi is seen to directly influence ethical judgement and intention; however, their favour-seeking guanxi attitudes do not influence ethical judgement or intention, regardless of employment type. Public and private accountants apply guanxi in a differential manner when determining moral intention. Public accountants are viewed as acting spontaneously without adequately considering the consequences (via the judgement phase), which appears to be a function of the nature of their personal association with the case study applied in this research.

Originality/value

The research provides evidence that Australian accounting professionals relate to favour-seeking guanxi as representative of a broader notion of social networking. In this context, the guanxi instrument appears to be amenable to cross-cultural evaluations of group behaviour. Significant differences of opinion exist compared to the prior Chinese studies when unethical practices are considered. The guanxi instrument proves to be a useful tool when examining the group interactions involving Western professionals and also helps establish differences in moral constructions based on employment types.

Details

Managerial Auditing Journal, vol. 29 no. 8
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 30 May 2023

Wei-Shen Hui, Houn-Gee Chen, Yi-Te Chiu and Matevz (Matt) Raskovic

Relationships are a critical success factor for business operations across markets with dominant Chinese culture, like Taiwan. The intersection of a high-quality institutional…

Abstract

Purpose

Relationships are a critical success factor for business operations across markets with dominant Chinese culture, like Taiwan. The intersection of a high-quality institutional environment and a traditional Chinese cultural background in Taiwan provides a unique setting for exploring different types of relational mechanisms and ensuing renqing practices (i.e. reciprocal exchange of favors with empathy). The purpose of this paper is to examine when, where and how Taiwanese high-performance organizations manage and deploy interorganizational renqing across their business relationship portfolios. Answering these questions can help build a theory of interorganizational renqing and advance interorganizational reciprocity theorization more generally.

Design/methodology/approach

This research is motivated by two key research questions. First is related to how renqing givers understand renqing in the context of their organizations and their interorganizational business relationship portfolios. Second, whether organizations prefer a neutral renqing balance, a renqing debt or a renqing surplus is another point of interest. The study is based on interviews with upper echelon elite informants at six high-performing Taiwanese organizations with business relationship portfolios worldwide.

Findings

It is found that interorganizational renqing is deployed as a hybrid resource, taking on the functions of both an investment and a type of insurance against risk. Two notable differences between interorganizational and interpersonal renqing are also noted. First, the social exchange norm aspect of renqing points to salient social exchange norms also in interorganizational exchanges. This confirms the importance of understanding not only the regulative and normative dimensions of business relationships, as a type of institution, but also the cognitive dimensions and underlying institutional logics. Second, this study shows that unlike at the interpersonal level, the notion of renqing debt is not common at the interorganizational level – at least not within high-performance organizations with market leader positions.

Originality/value

This study explores interorganizational renqing practices and their strategic deployment through the use of “accessing” and “embedding” relational mechanisms. The study also adds to the poorly understood nature of interorganizational reciprocity and provides support for developing a theory of interorganizational renqing, as a form of interorganizational reciprocity within a Chinese cultural context.

Article
Publication date: 7 October 2013

Mingzhi Liu

The purpose of this study is to investigate the effect of Chinese auditors' personal values (guanxi and ethical orientations) on their ethical reasoning (ethical judgments and…

1387

Abstract

Purpose

The purpose of this study is to investigate the effect of Chinese auditors' personal values (guanxi and ethical orientations) on their ethical reasoning (ethical judgments and behavioral intentions). In addition, this study aims to explore the joint effect of guanxi and ethical orientation on auditors' ethical reasoning.

Design/methodology/approach

This study is based on a field survey of 191 auditors working in Certified Public Accounting (CPA) firms that operate in the People's Republic of China (China).

Findings

The main findings indicate that guanxi and relativism orientations negatively associate with, while idealism orientation positively associates with, auditors' ethical judgments and behavioral intentions. However, when decomposing the overall ethical judgment into three judgment groups, the main effects of guanxi and ethical orientations on auditors' ethical judgments become marginal and those effects fully hold only when using acceptability as criteria to judge questionable behavior in the vignettes. In addition, the results of the joint effect of guanxi and ethical orientations indicate that guanxi orientation weakens both the positive effect of idealism and the negative effect of relativism orientations on auditors' ethical reasoning.

Originality/value

This study contributes the literature by investigating the ethical reasoning of auditors in a country with a relatively weak legal system that relies on guanxi (literally, interpersonal relationships and connections) culture to operate business. Furthermore, this study extends the literature by documenting the moderating effect of guanxi orientation on the relation between auditors' ethical orientation and their ethical reasoning.

Details

Managerial Auditing Journal, vol. 28 no. 9
Type: Research Article
ISSN: 0268-6902

Keywords

Article
Publication date: 13 September 2011

Jessica Li and Jean Madsen

The purpose of this paper is to examine Chinese employees' perceptions on their ethical decision making in relation to the workplace guanxi context in state‐owned enterprises…

2093

Abstract

Purpose

The purpose of this paper is to examine Chinese employees' perceptions on their ethical decision making in relation to the workplace guanxi context in state‐owned enterprises (SOE).

Design/methodology/approach

Using a qualitative method, two rounds of interviews were conducted with 18 participants in two SOEs “to explore Chinese employees” ethical perceptions and experiences in the workplace. A qualitative thematic strategy was adopted to analyze and interpret the data.

Findings

The authors identified three major themes on SOE employees ethical decision making in relation to workplace guanxi: the ethical self; malleable ethical standards; and submission to authority. The authors derived a conceptual framework to outline the relationship between the invisible hand of guanxi and the SOE employees' ethical decision making.

Originality/value

The paper contributes to the business ethics literature by presenting a three‐dimensional profile and a conceptual framework for Chinese business ethics research. It provides an in‐depth understanding of a complex dynamics of guanxi and its impact on employees' ethical decision‐making behavior.

Details

Journal of Chinese Human Resources Management, vol. 2 no. 2
Type: Research Article
ISSN: 2040-8005

Keywords

Article
Publication date: 30 December 2020

Weidong Rong, Mark J. Arnold and Brad D. Carlson

Guanxi is the foundation of business success in Chinese and other Eastern cultures, but little is known about the extent to which guanxi influences brand outcomes in channel…

Abstract

Purpose

Guanxi is the foundation of business success in Chinese and other Eastern cultures, but little is known about the extent to which guanxi influences brand outcomes in channel relationships. The purpose of this study is to propose a novel theoretical framework of interpersonal and interorganizational guanxi relationships in a sales channel context and how these relationships influence brand outcomes.

Design/methodology/approach

The authors conceptualize, develop and validate new scales measuring interpersonal and interorganizational guanxi and test the proposed model with a field study to validate the effects of guanxi on brand loyalty. The causal relationships between interpersonal guanxi and brand attitudes and affect are confirmed in a separate field experiment.

Findings

Findings show that interpersonal guanxi is antecedent to interorganizational guanxi, and these two constructs have significant and differential direct and indirect effects on brand attitudes, brand affect and brand loyalty.

Originality/value

New multidimensional scales measuring both interpersonal and interorganizational guanxi were developed. Both interpersonal and interorganizational guanxi are conceptualized as second-order reflective constructs measured by the reflective first-order guanxi elements of personal and firm trust, personal and firm long-term orientation, xinyong (integrity), reciprocity, interaction and face.

Details

Journal of Business & Industrial Marketing, vol. 36 no. 7
Type: Research Article
ISSN: 0885-8624

Keywords

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