Guanxi GRX (Ganqing, Renqing, Xinren) and Conflict Management in Sino-US Business Relationships

Abstract

his paper challenges the existing view of guanxi as comprising one combined notion, and thus proposes to investigate guanxi’s sub-dimensions individually. Developed from Confucius Relationalism, the proposed GRX conflict management framework argues that ganqing (emotional attachment), renqing (reciprocal favour exchange) and xinren (interpersonal trust) have different effects on reducing task and emotional conflict. Empirical findings based on 300 Sino-US business relationships reveal that ganqing and xinren can significantly reduce both emotional and task conflict, whilst renqing does not have a significant effect on reducing either. Nevertheless, upon moderation analysis, the effects of ganqing and renqing in reducing emotional and task conflict become more significant when dealing with the more experienced buyer (with a longer length of employment), whilst xinren’s impact on reducing task conflict is lessened in more mature relationships (those with a longer business relationship duration), compared to less developed business relationships. The findings shed new light to guanxi literature, with evidence highlighting how GRX dimensions may be employed individually to effectively reduce conflict in Sino-US business relationships.