The Study of the Guanxi Transferring Process from Individual to the Organization by Genetic Algorithm

Abstract:     
Guanxi covers not only the relationships, but also the core social customs of individuals from China. This study is similar to previous studies, in focusing on the link between an individual’s guanxi and the organization. It differs from previous studies, however, in the way that subjects’ process of transferring guanxi is analyzed. This paper proposes modeling the economies of individual guanxi so that its impact on the organization in dyadic business exchanges can be measured. First, this paper introduces the concept of individual guanxi in the business environment. Secondly, some of the variables that are related to this issue are presented. Thirdly, a process for transferring guanxi is proposed to better understand the effect on the organization. With the transferring process, the organization could recognize the importance of guanxi, and gather up the threads of improve performance. Finally, we propose a numeric simulation to perform this guanxi transferring process using a genetic algorithm. In this process, it is found that the chromosome (the individual guanxi), crossover probability (the interaction between the individual guanxi), and mutation probability (the uncertainty of guanxi) all play important roles.

Number of Pages in PDF File: 11

Keywords: Guanxi, Genetic Algorithm, Mutation Probability

JEL Classification: A1, O53

Accepted Paper Series