The significant of ‘GUANXI’ towards contractors to endure in the construction industry

There is one slight problem, however, which concerns business ethics and sense of fair play. When you work your way into the good graces of a client by establishing the personal connections of guanxi, you effectively shut out of this loop other contractors who are not into the practice, which is neither fair nor just. In addition, guanxi is often established by extending favors or giving gifts, which takes on the appearance of bribery and corruption.
All the above postulates – the increasing interest of Western management scholars, the distinct significance of guanxi in the multi-faceted construction industry, the thin line that separates it from bribery and corruption – make guanxi an interesting study area for anyone seeking new management tools that could provide control and efficiency in an otherwise intractable industry. This is what Project Management in Construction is all about.
Personal connections in guanxi are looked upon as a necessary condition for doing business successfully in China. The actors in the guanxi relationship may purposefully create or accidentally discover the affinity as they look for shared experiences to establish a common social identity. This then sets the stage for the guanxi interactions, which may be expressive or instrumental. Expressive interactions refer to socially oriented activities, while instrumental activities are pragmatic transactions and exchanges related to work and business. After the two persons become familiar through common bases, they proceed to engage in a wide variety of transactional activities to move from an outer to an inner circle. (3)
3. Relevance to the Course
Guanxi has attracted the attention of Western management scholars who saw its rich potential as a business formula for success not only in China but elsewhere. This interest is evidenced by the frequent and copious mention of guanxi in popular and academic literature that no longer requires literal translations. There is a strong possibility that such fascination with the Chinese principle prompted the