The Cultural Roots of Guanxi: An Exploratory Study

Abstract

This paper first describes the cultural roots and characteristics of guanxi in Chinese society. It then goes on to test some propositions about the perceived relationship between these characteristics and (i) Hofstede's conceptualisation of collectivism and power distance and (ii) the content and quality of formal institutions . The sampling frame used consisted of three groups of students – viz . Chinese Singaporeans, Non‐Chinese Singaporeans and Mainland Chinese, studying in tertiary institutions in Singapore. Our findings suggest that, while the perceptions of guanxi were positively and significantly related to Hofstede's culturally related variables, this was not so in the case of formal institutions. This latter result suggests that, in East Asian countries, guanxi may well be regarded as, at least, a partial substitute for formal institutions.