The Development of Guanxi Scale - From the Perspective of Individual level and Multidimensional

Measure
Dauw-Song Zhu
Chen-Huan Hong
Abstract
Guanxi is a special mechanism for interpersonal relationship of Chinese society. The cognition of relationship in Chinese
society is quite different from that of the Western society. Guanxi means treating relational objectives in different ways.
Westerners use transaction cost theory, social exchange theory and interaction theory to analyze the relationship, whereas
Chinese guide their values of collectivism and order by Confucism and guanxi (Buttery & Wong, 1999).
Past research suggested that guanxi is beneficial for doing business in Chinese area or individual career progress. However,
even though we can improve our understanding of Chinese business practices through realizing guanxi, the conceptual
definition of guanxi is not clearly defined yet, and different academic fields have different approaches to this concept.
Besides, there are not only very few studies providing the measurement of guanxi (only 15 from 1989~2007) but the
contents and means of measuring guanxi constructs also fail to reach consensus, for this reasons, the study tries to develop the
guanxi scale by based on integrating past researches to construct a more complete scale for measuring the perceived guanxi of
specific individuals.
This study relies on both the society and management fields to interpret the meanings of guanxi, and take it as a base for the
scale development. We hope to provide the proof that the concept of guanxi could be measured by operating the guanxi
construct and the process of empirical test. Finally this study validates seven guanxi dimensions and demonstrates its
usefulness in predicting interpersonal relationship quality of trust and commitment. By doing so, we can improve the
theoretical construction and development of the guanxi research.

Key Words: guanxi, relationship, scale development

I. Introduction
The development of Chinese culture and society are deeply affected by Confucianism (King, 1991), and Guanxi are the
important concept based on it. Bell (2000), Hwang (1987) and King (1991) take Confucianism as a base to explain the
meanings, categories and behavioral rules of guanxi. Thus, guanxi is a special mechanism for Chinese social operation with
profound cultural meaning. Intrinsically, guanxi is different from relationship, Buttery & Wong (1999) point out that
Westerners use transaction cost theory, social exchange theory and interaction theory to analyze relationship; whereas Chinese
guide their values of collectivism and order by Confucism and guanxi.
First, scholars based on wu-lun structure to interpret guanxi concept. Since Confucius codified the societal rules, values and
hierarchical structures of authority during the sixth century B. C., the Chinese society has been functioning as clan-like
networks (Luo, 1997a). Hereafter, gaunxi concept is emphasized by business and management field, and guanxi becomes and
important basis of societal and business interaction in Chinese, Hong Kong, Japan, Korea, and Taiwan.
Many researches have already highlight the importance of guanxi, and realizing guanxi could improve our understanding
about it, however, the conceptual definition of guanxi isn
t easy to clearly define. Scholars from different research fields have
different focus on guanxi research. Sociologists mainly explain the origin and meanings of guanxi from cultural background
and think thatguanxi is helpful for maintaining the harmony of Chinese society (King, 1991; Luo, 1997a), and their research
focus on annotating about the interaction principles with various guanxi categories; and scholars from business fields lay
special emphasis on the application of guanxi concept, and their research focus on discussing the importance, effective scope,
and value of guanxi in business practices. And owing to business research field mostly starting from strategic and business
development viewpoint to study guanxi, basically they are inclined to illustrate the importance of guanxi from instrumental

perspective (Farh, Tsui, Xin, & Cheng, 1998; Fock & Woo, 1998; Luo, 2003; Park & Luo, 2001; Standifird & Marshall, 2000;
Vanhonacker, 2004; Yeung & Tung, 1996). In short, no matter for society or business fields, guanxi is being respected and
worth for further research.
The study review guanxi literatures and think though guanxi is a critical factor for Chinese societal and business operation,
the definition of guanxi aren
t quite clear. According to literatures, we find that (1) there is in some need to integrate the critical
factors about guanxi; (2) there
re rare empirical studies about guanxi due to the lack of a more complete guanxi scale1. For
these reasons, we hope to integrate the past researches to construct a more appropriate scale in order to measure perceived
guanxi intensity between to person.

II. Literature Review

1. The review and analysis about guanxi measurement
Recently guanxi earns lots of respects, but in concerning with guanxi measurement tools, that are mostly developed by
researches and the conceptual definition of guanxi are still not with consensus. This is because guanxi is a more intrinsic,
complex, and multidimensional constructs. Take guanxi and relationship marketing as an example, it
s said that relationship
marketing is easier to measure than guanxi (Gilbert & Chol, 2003), because in the process of transaction, relationship
marketing is of an economic nature, concerning goods, services, systems of goods and services, financial solutions, material
administration, transfer of information, social contacts and a number of future commitments; otherwise, guanxi is more
complex and go beyond their economic content to include reciprocal personal favors and mutual protection and enhancement
of reputation and social status (Arias, 1998). So, it
s thought that guanxi is not easy to be operationalized.
The study claims that it is needed to develop a more appropriate guanxi measurement tool. After reviewing guanxi empirical
studies, we found that there are basically two kinds about guanxi measurement from 15 papers: (1) the beliefs or attitude about
guanxi; (2) the perception about guanxi. The former way of measuring guanxi is not concern with guanxi intensity but about
how someone think of guanxi in their business practices really is, such as beliefs (Ang & Leong, 2000; Armstrong & Seng,
2000), attitudes (Chan, Cheng, & Szeto, 2002; Szeto & Wright, 2006) and inclination (Lee, Pae, & Wong, 2001). There are lots
of important contents in these studies such as
future benefit consideration
,
insiders are treated better
,
reciprocity
,

favors
,
face
,
mutual benefits
,
harmonyetc. And this study refers to these contents as basis for scale development.
Besides, the latter way of measuring guanxi is concern with intensity. We category it into three kind of measuring style: (1)
guanxi ties; (2) uni-dimension; (3) multiple-dimension.
Guanxi ties is a very common way to measuring guanxi. Guanxi ties means that if there exists some kind of relationship ties
between two person, then they have guanxi. Past researchers had already point out there are some defects in this kind of
measurement. Guanxi ties based on Blood or common experiences are not necessary for further interpersonal relationship
development (Kiong & Kee, 1998). Law, Wong, Wang, & Wang (2000) have criticized Farh et al. (1998) that guanxi ties could
not tell supervisors how guanxi are built and how to improve their guanxi with employees; Yang[](1999) hold the same
viewpoint that having guanxi ties doesn
t mean that there must exist real affections; Dunfee and Warren (2001) also think that
guanxi ties is not sufficient for building strong guanxi, they must work together for a while, frequently interacting and
exchanging favors, and then they could build and maintain guanxi. In this line, we can realize that it
s insufficient to measuring
guanxi purely by guanxi ties.
The second kind of measuring guanxi, unidimension, view guanxi as one dimension construct (such as Abramson & Ai,
1999; Ambler, Styles, & Wang, 1999; Law et al., 2000; Cheng, Farh, & Chang, 2002; Chen & Tjosvold, 2006; Wong, Ngo, &

Chen[] (2000) point out that although we can realize the importance of guanxi for Chinese, most relative studies mostly focus on conceptual analysis
or general investigation. There are very rare systemic empirical studies about guanxi topic. The reason is guanxi accompany with various and complex
meanings, so it
s no easy for researchers to operating and measuring it.

Wong, 2003; Leung, Lai, Chan, & Wong, 2005; Cheung & Gui, 2006). From the definition and contents of most guanxi
literature, guanxi is basically a multiple concept. Besides these researches don
t research consensus on how many dimension
should be included to describe the guanxi. Thus, we think it
s better to view guanxi as a multidimensional construct.
The third kind of guanxi measurement sees guanxi as composed with various dimensions (such as Abramson & Ai, 1999;
Lee & Dawes, 2005). These studies had already point out some critical facets about guanxi but actual we think they still lack of
a more integrated systemic structure to construct guanxi and some measuring items also need to be refined.
As a result of the insufficiencies of guanxi measurement, we plan to integrate past guanxi researches and refined their guanxi
scales. We propose three critical viewpoints of this study: (1) we theoretically assume guanxi is included with instrumental and
affective ingredients but the distinction between them are not our point, so we just sum up these ingredients to present whole
guanxi intensity; (2) it
s more adequate to measuring guanxi based on multi-dimension perspective due to guanxi itself is with
multiple facets; (3) guanxi intensity can be presented by active or passive ways. Active means the inclinations or behaviors of
someone who has ever done in their relations with somebody, and passive means the beliefs or expectations of someone hold
about how others will treat them. We think both the two ways could present the perceived guanxi intensity.

2. The definitions and dimensions of guanxi

Sociologists propose guanxi concept for relation-oriented Chinese society (Bian, 1994; Hwang, 1987; King, 1991). Guanxi
in literatures has been translated into
connection
,
social networking
, or special interpersonal relationship. But there is no
specific English words could define it (Hackley & Dong, 2001). Its different from relationship (Bell, 2000) basically.
Relationship is more visible and open than guanxi, and Western relationships emphasize equality but guanxi often come with
the obligation of more reciprocity (Hackley & Dong, 2001).
According to past researches, there are three kinds of relationship types: business relationship, leader-member relationship
and general social relationship. The definition of Guanxi in business relationship category is narrower. They often view guanxi
as a kind of medium to capturing resources (Wall, 1990; Davies, Leung, Luk, & Wong, 1995), take favors, mutual benefits,
trust and dependence as key guanxi elements, and rely on network to gain resources and build competitive advantages
(Abramson & Ai, 1997; Luo, 1997ab). Besides, Guanxi in leader-member relationship category often be defined through
guanxi ties and interactive basis. Guanxi ties means common backgrounds, such as relatives, classmates, and coworkers, and
interactive basis means the relations come from the experience of interaction. Finally, the definition of guanxi in general social
relationship is with more extensive meanings. According to Yang (1993), guanxi could be classified as family relationship,
familiar relationship, and acquaintance relationship. Or from the point of resource distribution, guanxi could be classified as
instrumental, affective, and mix relationships.
The study focuses on mix relationship. And in order to fit the research scope of business field, we choose coworker
relationship as the basis of guanxi research to develop and construct informal, societal, and cultural meaningful guanxi scale.
In this study, we define guanxi as special treatment between persons which is built based on interactive experience and
follow by specific rules included mutual benefits, reciprocity, emphasis of favors and face.

3. The critical factors and contents of guanxi

Guanxi has been illustrated and discussed in many fields such as anthropology, psychology, business administration. Bell
(2000) claims the development of Chinese culture and society is based on Confucianism. Guanxi is used to expand other
supports beyond family. And it
s supposed that we must follow some specific rules in order to maintain the social harmony.
This study refer to the perspectives on guanxi of these different research fields to induce 6 important dimensions of guanxi,
including
ren-quin (favors)
,
mutual benefits
,
reciprocity
,
harmony
,
face
,
differentiation
. Theirs meanings and
connotation are described as follows:

(1) Ren-qing (favors): Social psychologists consider that

ren-qingis hard to be concrete presented but a powerful obligation
(Kim[], 1988). When someone have done something meaningful to the other, then the other one might owe to the
person (Hwang[], 1998). In sum, the word
ren-gingindicating individual emotional responses of daily life,
means a resource allocated to another person as a gift and also connotes a set of social norms to guide an individual to get
along well with other people. In this study, we think that because Chinese emphasize the
ren-gingso much so that any
kind of favor-giving might raise the accumulated favors and then create some kinds of obligation or affections. Thus, we
think that the more the ren-qing, the higher the guanxi.
(2) Mutual benefits: Guanxi often means the social connection which is base on mutual benefits. Transactional partners bonds
together through the obligation of reciprocal favor exchange (Alston, 1989; Luo, 1997b; Lee et al., 2001). We think that
when someone is in need and the other voluntarily give him/her a hand, then the reciprocal behaviors between them will
increase and also improve their guanxi.
(3) Reciprocity: Westerners think that reciprocity is for maintain the beneficial equality with each other, but Chinese think
that reciprocity might be detained and unequal. Liu[] (1993) indicates that Chinese
baois quite different from

social exchange theory

. Bao means when Chinese feel he/she owe someone favors, then, he/she will respond the favors
for a more big one. Thus, we think that when someone follows the rule of Chinese
baowhen interacting with somebody,
then the guanxi intensity between them will increase. Instead, if someone doesn
t follow the bao rule, then the guanxi will
become harder to maintain.
(4) Harmony: The reason why Chinese emphasize the hierarchy comes from the Confucian
wu-lunstructure. It means that
everyone in the Chinese society will keep to the prescribed roles, and follow the hierarchy and status to decide their acts in
order to research social harmony. Harmony implies that Chinese are inclined to prevent conflict and directed to the system
of group-oriented social relationship (Buttery & Leung, 1998). In other words, .the Confucian school develops
wu-lun
as the basis of guanxi to research social harmony (King, 1991; Luo, 1997a). Thus, it
s thought that harmony and hierarchy
are important factors of guanxi (Wang, Wang, Ruona, & Rojewski, 2005).
(5) Face:
Faceis not exclusive to Chinese but westerners seldom value
faceas high as Chinese (Kim[]1988).
Chinese very emphasize the importance of
face(Park & Luo, 2001). Face is an important ingredient of guanxi
something like social status (Lockett, 1988), prestige and identification (Ang & Leong, 2000) recognized by others. Thus
we think that the more the face is valued, the more the guanxi is.
(6) Differentiation: Chinese often treat others in different ways in according with the relationship between them (Fei[
]1948). Chinese are inclined to care more about the insiders. It
s also found that comparing with westerners, Chinese
are more likely to sort others with the types of relationships between them and treat them differently (Butterfield, 1983).
This means that if someone treats the other according the relationship between them, then the guanxi between them will
increase.

III. Preliminary scale construction

1. Definition
The study refers to the scale of past researches to develop and construct a more integrated guanxi intensity scale. On the
other hand, after reviewing 15 studies about guanxi, we find that there are 2 studies (Law et al. (2000) and Chen & Tjosvold
(2006)) measuring guanxi from the interpersonal interaction. For this reason, we add one more guanxi dimension,
personal
i
n
t
e
r
a
c
t
i
on

. Finally, there are total 7 guanxi dimension and the corresponding conceptual definitions and reference are listed in
table 1.

Table 1 Conceptual Definition of Guanxi Dimensions

Factors
Favors

Definition
Someone bases on accumulated
favors and relationship intensity to

Reference
Lee & Dawes (2005); Park
& Luo (2001)

allocate resource, care, and give gift to the

other.
Mutual
Benefits

Someone voluntarily and

Chan et al. (2002);

wholeheartedly helps and satisfies another.

Abramson & Ai (1999);

And suspect the other will also give a hand

Armstrong & Seng (2000);

when he/she is in need.

Wong et al. (2003); Ang &

Leong (2000)

Reciprocity

Someone repays favors more than

Ang & Leong (2000); Yau

what he/she has received. And even when

et al. (2000); Ambler (1995);

he/she couldnt repay favors

Yang (1994)

immediately, he/she will repay it someday

in the future for a bigger one.
Personal
Interaction

After work, someone still has

informal interaction frequently with the

Law et al. (2000); Wong et

al. (2003)

other.
Harmony

Someone will follow the rules of

Hackley & Dong (2001);

orders and codes of ethics and be inclined

King (1991); Luo (1997a);

to prevent conflicts when interacting with

Buttery & Leung (1998); Siu

the other.

(2003); Leung et al. (2005);

Friedman et al. (2006); Leung et
al. (2005)

Face

Someone will respect the others

feelings and thoughts and prevent to

Lee & Dawes (2005); Ang

& Leong (2000)

embarrass the other.

Differentiation

Someone will treat the other better,

consider the others benefits.

Armstrong & Seng (2000);

Cheng et al. (2003)

2. Delphi Method
The study executed Delphi method to confirm the adequacy of guanxi dimension and corresponding indicators for the
stability of factor structure and content validity of items.
First, we invited experts who are familiar with this topic to form Delphi panel. The results are built on the experience and
knowledge of these experts, and through this process we can refine the preliminary guanxi scale. The Delphi panel composes 4
professors from business administration field and 6 supervisors from various industries.
The study designed structural questionnaire and sent it by mail or Email to Delphi panel members. The first round processed
about one month, and after one week we execute the second round. The second round processed about one week.
Basically, there
re two criteria of Delphi method: (1) consistence, (2) importance. First, according to Faherty (1979) we
judge the consistence is achieved when quartile deviation is less than 0.7. Holden and Wedman (1993) suggest that when
quartile deviation is beyond 1 means that the opinions of Delphi members aren
t reached consistence. Besides, the criterion of
importance is judged by average, and when average is less than 5.0 we
ll eliminate the factor or indicator.

After the two round of Delphi method, we found that guanxi dimensions all reach the criteria of importance and consistence.
Besides, as to indicators, the results from the first round show that there
re 14 items which is not converging, thus we
process the second round to exchange the expertsopinions. After the second round there
re still 10 items not reaching
consistent. So we eliminate 10 items and confirm adequate 32 item scale for guanxi measurement.

IV. Conclusion and Suggestions

1. Conclusion
The study mainly focuses on developing and refining measurement of guanxi, and constructs a guanxi intensity scale. We
hope through integrating past researches to develop a more appropriate guanxi measurement.
We think after reviewing literatures, integrating past guanxi measurement tools and contents, we will be able to construct a
more suitable guanxi scale. The study proposed 7 critical guanxi dimensions and corresponding items as a basis for further
examination and test.

2. Suggestions
The study couldn
t separate voluntary relationship with restricted one. And we also don
t discriminate the weights of three
big important ingredients (affective, instrumental, and obligated) of guanxi. We only sum up these critical dimensions to
present guanxi intensity. Thus, we suggest further researches could make more effort on this part.

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