Sunday, April 22nd, 2007
GuanXi and Social Capital : Importance and implications in business and the Internet
It is widely acknowledged that the Chinese culture has a somewhat different perception of how business is conducted. Guanxi, the Chinese social capital term, is the most widely discussed term to describe the Chinese business world, in both China and Taiwan. It is commonly used to emphasis the difference between Chinese and "western" business culture, and the difficulties in cross-cultural business interactions. In the past two years, with the Internet change towards social web and the increasing significance of social capital in western economies, Guanxi and its applications are becoming relevant for all.
Social capital is a core concept in business, economics, organizational behavior, political science, and sociology, defined as the advantage created by a person’s location in a structure of relationships. It explains how some …
