A relationship marketing approach to guanxi

Abstract

In recent years there has been a growing interest in Asian business practices, in particular the use of social networks in China for business purposes. Because of its relational nature, some have identified guanxi with a traditional form of relationship marketing. We use the recent developments in relationship marketing theory to analyse guanxi. We find that understanding and managing guanxi is useful in the development of partnerships under the current economic situation in China, but does not support the other two basic strategic essentials of relationship marketing: service and process management. Additionally, we detect relevant changes in the structural conditions of China that make guanxi necessary in the access to the Chinese market.