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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.

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 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.

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.

One of the major hot research topics is relationship marketing. However, limited research has been carried out on the complex notion of guanxi (literally, relationship) in Chinese society. Misunderstandings and misconceptions concerning this significant topic persist. Aims to explore the mapping of guanxi in relationship marketing so as to present a comprehensive guanxi model suitable for businessmen in a Chinese context. Case examples were also used to test the model in a real‐life situation. Both theoretical and managerial implications are given. The theoretical framework includes a new model of various systems: guanxi perceptual map, routings and yin‐yang dynamic. The managerial implications explore guanxi mechanisms and different dynamic perspectives with mind‐heart and insider‐outsider dimensions. In addition, recommendations for future research are made.

This study examines the effects of incentive compensation and guanxi, a type of informal personal relationship between people, on the objectivity of Chinese internal auditors. Given that the objectivity of internal auditors is essential for promoting financial reporting quality, it is important to investigate the effectiveness of internal audit functions, especially in emerging markets where the corporate governance mechanisms designed to promote objectivity are less mature.

The research employs a 2 × 2 between participants experiment with 116 graduate accounting student participants.

After controlling for internal auditors’ ethicality, we find that close-guanxi between management and internal auditors and incentive compensation in the form of bonuses based upon meeting earnings targets both have the capacity to impair the objectivity of Chinese internal auditors. Participants were more tolerant of management’s attempts to manage earnings when there was close guanxi or bonus compensation. Further, compensation structure only influenced internal auditors’ support of management when guanxi was distant, but when there was close guanxi between internal auditors and management, internal auditors were unlikely to challenge management regardless of the compensation structure.

To review the importance of the Chinese cultural phenomenon, guanxi, and the marked difference in both consumer behaviour and management practices between China and the West, all from the perspective of market entry by multinational firms.

General conclusions are drawn and strategic imperatives inferred from a review of the relevant literature and a set of case histories based on personal interviews with key executives in the Chinese operations of six large overseas consumer‐goods companies.

The undoubted strategic significance of guanxi has been diluted recently among joint ventures designated as “encouraged” by the Chinese government, and is being replaced by a market‐driven paradigm of marketing operations. The guanxi‐driven paradigm remains a crucial factor in planning and managing effective working relationships when the Chinese partner is one officially classified as “restricted”. Case histories show that early success is no guarantee of continuing dominance, as indigenous competition intensifies and Chinese corporations become larger and better resourced.

Foreign multinational entrants to the Chinese market must remain sensitive to characteristically Chinese business and consumer behaviour, but can successfully adopt a more Western approach to marketing strategy in certain situations. It is essential to use marketing intelligence effectively, and to plan well beyond the short term.

The authors' expert view of the current situation fro multinationals in China adds a useful extra dimension to the received wisdom.

Recently, the popularity and growth of social media have boosted the development of social commerce (s-commerce). The purpose of this paper is to investigate consumers’ decisions in s-commerce, for which this study conducted empirical research on WeChat, a very popular social media in China, to validate how guanxi elements (e.g. ganqing, renqing and xinren) affect consumers’ decisions in s-commerce.

To examine the research model, an online survey instrument was developed to gather data. The hypotheses were tested using partial least squares modeling.

The results confirm that guanxi elements are positively related to eWOM sharing intention and social shopping intention. Moreover, these effects are mediated by a sense of belonging.

This study enhances the existing literature by introducing the concept of guanxi elements to the context of s-commerce, and linking the concept of guanxi elements and consumers’ decisions. Moreover, this study improves the theoretical and empirical understanding of guanxi elements by investigating its impact on eWOM sharing intention and social shopping intention. Third, the results confirm that guanxi elements not only influence a sense of belonging but also conjointly impacts eWOM sharing intention and social shopping intention in s-commerce.

In the recent decade, social media popularity and growth have boosted the development of social commerce (SC). This study aims to explore the significant impact of guanxi (关系) elements (ganqing 感情, renqing 人情 and xinren 信任) on online purchase intentions. Furthermore, this study investigated the moderating role of social support between electronic word-of-mouth (eWOM) and online purchase intentions.

An online survey was conducted on 309 consumers who had online purchasing experience through WeChat, a famous social media application in China. Structural equational modeling was used to test all hypotheses.

The results indicate that guanxi elements are positively related to eWOM, affective attitude and online purchase intentions in SC. Additionally, social support has a significant moderating role between eWOM intention and online purchase intention.

Considering the effects of guanxi elements on eWOM affective attitude and online purchase intention in Chinese SC, online retailers are advised to carefully develop their marketing strategies to retain and attract new consumers. Furthermore, online retailers can use the findings from this study to understand the consequences when online purchase intention is strongly influenced by guanxi elements.

This research extends the current literature by applying the notion of guanxi components to the sense of SC and relating the notion of guanxi components and consumer decisions. The results show an understanding of the reality by which guanxi elements may affect the intention of eWOM sharing and boost online purchase intention.

Relationship marketing is widely regarded as effective in developing competitive advantage. But views on exactly what activities constitute relationship marketing may differ in various cultural settings. In‐depth interviews with account managers in commercial banks in Hong Kong yielded a list of activities considered critical to building relationships. In a following survey, account managers in Asian banks rated the importance of the various social activities higher than did account managers in Western banks, although all respondents were ethnic Chinese. The Western banks rated business activities more important than did the Asian banks. Factor analysis shows that managers in Western banks perceive dimensions of business activities consistent with recent thinking about relationship marketing. Respondents in the Asian banks do not view social activities and business activities to be distinct, nor do they distinguish strongly differentiated dimensions of business activity elements.

This study examines how project uncertainties (environmental uncertainty and participant uncertainty) affect guanxi and contractual governance and assesses the mediating role of guanxi governance between project uncertainty and contractual governance.

Data were collected in two stages from Chinese contractors. First, in-depth interviews were conducted with nine construction engineering project practitioners in different contracts as a pilot for questionnaire designing. Second, a cross-sectional questionnaire survey was conducted with professionals and practitioners of construction enterprises to collect primary data. Partial least squares structural equation modeling (PLS-SEM) was used to test seven hypotheses based on data collected from 198 respondents.

Project environmental uncertainty promotes the use of guanxi governance, while project participant uncertainty hinders it; the relationship between both types of uncertainty and contractual governance is the same as with guanxi governance. Furthermore, guanxi governance promotes contractual governance and partially mediates project environmental uncertainty and contractual governance and a complete mediating role between project participant uncertainty and contractual governance.

As the interviewed samples are mainly from China, the study should be replicated using large representative samples from East Asian countries, such as Japan and South Korea, to gain a more comprehensive understanding of the influence of guanxi governance. Further, while the internal consistency reliability and convergent validity of the questionnaire data in this study align with the standards, a larger sample size would improve the reliability and validity of the research results and better represent the overall work situation of contractors, owners and public policymakers.

The results provide insights into project governance research and have implications for construction practitioners in deploying governance-related resources.

The purpose of this study is to explore the role of social media usage among business-to-business sales professionals in China. Specifically, the authors seek to define and explore the unique ways in which Chinese salespeople use social media, with a special emphasis on the role of guanxi. Guanxi is a complex cultural construct that revolves around the exchange of favors to build trust and connection for business purposes.

Three in-depth interviews of sales managers from two industries along with survey data from 42 pharmaceutical sales representatives were collected to gain an understanding of the general usage and attitudes toward social media in the sales process in China.

Results indicated that virtually all the salespeople in the sample were highly familiar with social media and integrated it into the sales process. Furthermore, all participants indicated that their companies were highly supportive of the use of social media with their customers. More importantly, salespeople in China view social media as a critical tool in building guanxi with their customers. Findings from this exploratory study are used to create a conceptual framework for understanding the important role of social media in building guanxi in China.

While the sample is limited to three managerial interviews and 42 survey responses, the data indicated a near universal acceptance and use of social media among Chinese salespeople. Most importantly, social media appears to be the modern gateway to the ancient and culturally unique construct of guanxi that is absolutely indispensable to successful business-to-business sales performance in China.

The structural challenges within China make trust and emotional connection essential to any potential business relationship. Trust is at the core of guanxi. Any firm hoping to succeed in China must understand guanxi and the use of Chinese social media to help build it. This study adds to the knowledge and understanding of guanxi and begins to elucidate the uses of social media as a tool to build and maintain it.

Social media appears to be the modern gateway to the ancient and culturally unique construct of guanxi that is absolutely indispensable to successful business-to-business sales performance in China. This study deepens our understanding of not only guanxi but also how the modern phenomenon of social media is affecting it.

This is one of very few studies to investigate the use of social media among salesforces in China. More importantly, the authors know of no other study linking social media with guanxi.

This article aims to identify critical aspects of Chinese‐Western intercultural guanxi relationships that have largely been ignored as a domain for study in international business and industrial marketing, and to suggest a way forward.

A theme analysis across a range of academic and business journal articles is undertaken to capture major themes involving China‐focused research that relates to international business and industrial marketing, and also to locate critical themes that may have been overlooked.

Intercultural interaction at a personal level is both unavoidable and critical for successfully doing business with China. This study introduces the term guanxi gateway ties to highlight a special class of facilitating relationships that can emerge through interactions between guanxi insiders and guanxi outsiders. Insiders and outsiders can meet and work together in this middle‐cultural territory for the instrumental purpose of obtaining passage through the “gateway”.

Inevitably some journal articles of interest may have been missed in the review due to the chosen scanning boundary. Nevertheless the search method provides a sufficient base to reveal recurrent research themes, and also overlooked themes of potential significance.

Guanxi gateway ties assist companies and individual business actors to find a path through the cumbersome Chinese bureaucracy and hierarchical levels by activating personal relationships.

This study reveals a commonly overlooked perspective of guanxi, that is, as a facilitator of culture‐bridging ties. The conventional business perspective of guanxi can be viewed as evolving from a gated community into an intercultural facilitating mechanism.