Empirical Evidences in Linking Guanxi, Renqing and Justice Theory: Doing Business in the Great China Area

  •  Lung-Tan Lu    


This paper utilizes two conceptual frameworks, on the foundation of Hwang’s (1987) model and the Justice Theory. It is suggested that businessperson may search for or reinforce Guanxi (tie) by three types of social ties, instrumental, mixed, and expressive. Therefore, resource allocators in Chinese society may deal out their powers to others with varied social ties. This study examines the relationships among the three types of social ties and Renqing giving and returning. Data collected form questionnaires completed by 190 Japanese expatriates in Taiwan. The findings are as follows: (1) businessperson with instrumental Guanxi will apply the equity rule, which excludes Renqing giving and returning; (2) businessperson with mixed Guanxi will use the equality rule, which will request moderate Renqing giving and returning; (3) businessperson with expressive Guanxi will apply the need rule, which will request strong Renqing giving and returning. Managerial implications are discussed in the final section.

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