Interpersonal trust in Chinese relational networks: Moving from guanxi to xinren

IMP researchers’ interest in China and Asia as a source of inspiration for understanding the nature of relationships and networks has been growing (Björkman & Kock 1995; Fang 2001; Fang & Kriz 2000; Yeoh & Wilkinson 2003). Guanxi, the mandarin word for “relationships”, “connections”, or “personal connects”, has been widely regarded as the most important success factors in the Chinese business literature. However, few researchers have identified at an empirical level the Chinese view of xinren (defined in this article as deep trust) and what it encompasses (Wong 1996; Tong & Yong 1998) and importantly, less have highlighted that guanxi does not necessarily contain xinren. The aim of this paper is to convey and develop new insights with the analysis and findings of two studies on Chinese markets (Fang 1999; Kriz, 2002). This paper suggests that success in China is built on interpersonal xinren and not, as most are suggesting, on guanxi. In Chinese markets it becomes evident that guanxi opens the door but it is xinren that determines how well you will be treated once you are in. The study provides reinforcement to the researchers in IMP that there is much to be learnt about relationships and networks by investigating cultures in China and Asia. 1 Lecturer, Central Coast School of eBusiness and Management, University of Newcastle, PO Box 127, Chittaway Road, Ourimbah, NSW 2258, Australia. Ph: 61 2 4348 4107 Fax: 61 2 4348 4101. Email: [email protected] 2 Assistant Professor, School of Business, Stockholm University, Sweden. Email: [email protected]