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Where Guanxi Matters

This article explores the indigenous concept of guanxi and its applications in the Chinese context. Guanxi is defined as the existence of direct particularistic ties between two or more individuals. We relate this concept to the idea of relational demography, which has been used by U.S. scholars in recent years to explain and predict a variety of individual-, group-, and organizational-level outcomes in U.S. employment settings. By comparing and contrasting the idea of guanxi to relational demography, we aim to develop an integrative framework that will provide a more comprehensive understanding of the dynamics underlying demographic and background similarities between people in the Chinese context than by using either concept alone. We offer several illustrative hypotheses on how and when relational demography and guanxi will matter most in influencing work outcomes in Chinese organizations.