The Influence of Relational Demography and Guanxi: The Chinese Case

Abstract

Two studies were conducted to investigate the indigenous concept of guanxi and its applications in the Chinese context. Guanxi refers to the existence of direct particularistic ties between an individual and others. We relate the concept to the idea of relational demography, which refers to similarities or differences between an individual and others on such factors as age, gender, race, religion, education, and occupation. The two studies focused on the importance of guanxi and relational demography in Chinese employment settings. In study 1, their importance was examined in a sample of 560 vertical dyads (i.e., between supervisor and subordinate) in Taiwan. In study 2, the effects were analyzed in a sample of 205 horizontal dyads, specifically between business executives and their important business connections (e.g., key customers, suppliers, bankers, government officials) in mainland China. Results support the importance of both guanxi and relational demography for subordinate trust in the supervisor, but only guanxi is found to be (extremely) important for business executives' trust in their connections. Implications for future cross-cultural research on the effect of common ties are discussed.

Keywords: Guanxi, Trust, Relational Demography, China