The objective of the current research study was to assess the impact of guanxi (personal connection) on company performance in China. It also aimed at formulating a strategy which would enhance business success through the practice of guanxi.; The research was conducted in both Canada and Hong Kong. The executives of nineteen Chinese and non-Chinese companies were invited to participate in the qualitative research study.; Although guanxi has been cited by the literature and business practitioners in China trade as a key success factor, it is revealed that guanxi is only a necessary condition for entering the China market, but insufficient for ensuring long-term business success for investors.; In establishing guanxi relations, it is found that achieved guanxi bases function equally well for investors in establishing guanxi relations. But investors should aim at entangling into the guanxi networks of the Chinese so that more common attributes can be cultivated through continuous interaction, and to strengthen their guanxi with the local Chinese.; In guanxi maintenance, it is disclosed that offering short-term gains is a strategy which is essential in the initial stage of guanxi building in order to gain a chance for guanxi establishment. It is proposed that nurturing long-term mutual benefits, cultivating personal relationship, building trust and tendering favors are the four collaborative successful guanxi building techniques which can cultivate strong guanxi relations. The integrated approach is underlined by the five fundamental dimensions of guanxi. They are instrumentalism, personal relations, trust, reciprocity and longevity.; Investors are advised to incorporate a long-term perspective when considering China business requests. Profit-making will only be realized in the long-term balance sheet rather than for individual business transactions. This is because the favors tendered today will incur immediate loss but they will provide handsome rewards in future since the Chinese tend to reciprocate. (Abstract shortened by UMI.)
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