This thesis explores the contemporary role of guanxi in Chinese entrepreneurship.
Although previous research has considered the subject of guanxi and Chinese
entrepreneurship, this study aims at providing a deeper and richer understanding of its
roles and nature. The study focuses on the relationship between guanxi and Chinese
entrepreneurs and specifically deals with the question, “Has the importance of guanxi
been diminishing in Chinese entrepreneurship?” In order to deepen the understanding of
guanxi, its nature, characteristics, benefits, advantages, disadvantages, process and
applications are explored. Furthermore, as there are many commonalities between
networking and guanxi, the study also distinguishes the differences between the two
subject matters.
In many aspects, it is important to understand the attitude and behaviour of Chinese
entrepreneurs. As Chinese entrepreneurs are affected by traditional Chinese heritage, the
study also uses different approaches to explain the difference between western and eastern entrepreneurship. The specific qualitative and quantitative technique used for
data generation is the adoption of case studies, surveys and telephone interviews. A total
of two in-depth case studies, two surveys and thirty telephone interviews have been
conducted. From these findings, respondents and interviewees expressed their view
points on how guanxi related to their businesses. The findings are used to identify the
relationship between guanxi and modern Chinese entrepreneurs, the changing nature of
guanxi, and in turn how the changing business environment affects guanxi.
The findings from this study conclude that although guanxi is important in China, it is
only a tool to implement business strategies but never a substitution, and its importance
has been diminishing in Chinese entrepreneurship