philip wright, w.f. szeto and louis t.w....

Guanxi and professional conduct inChina a management developmentperspective

Philip Wright WF Szeto and Louis TW Cheng

Abstract This paper explores guanxi within the context of lsquoethicalrsquo behaviour It wasfound that guanxi exerted a strong in uence on our sample with the exception of thenecessity to lend money As well there appeared to be a signi cant minority of respond-ents who would behave unethically to preserve group solidarity It was suggested that amodi ed version of the Belcourt et alrsquos management development model would be auseful tool in the development of modi ed coaching processes for use in authoritariancultures

Keywords Guanxi ethics management development coaching China

Introduction

As China edges closer to WTO membership the concept of professional conduct willbecome an evermore important variable in business decision making ConcurrentlyDrucker and Nakauchi (1998) have warned about the global consequences of Chinarsquosweaknesses in overcoming the twin problems of inept bureaucracy and inadequatemiddle management They went on to emphasize the need for more capable legal and nancial infrastructures It has long been argued however that these reforms wouldgenerate dif culties in the domestic economy (Harrald 1995) although certainly theamount of suffering would vary depending on the industry or sector (Hussain andZhuang 1997 Clifford et al 1997)

Now the reality of massive reorganization is upon us as pending membership in theWTO will force China to become more integrated into the world economy (China andthe WTO 1999) China will need world markets and in turn larger portions ofthe world economy increasingly will depend on China (Goodman and Segal 1998Gaitskell 2000)

To prepare for eventual membership the Chinese government has instituted a seriesof internal reforms as well as trying to improve external trade relations especially withthe United States (Crispin et al 1999) All sectors of the economy are undergoingchange with reform focusing particularly on the vast state-owned sector (Chartier1998)

Philip Wright Associate Professor of Management Department of Management School ofBusiness Hong Kong Baptist University Hong Kong PRC WF Szeto Associate Professorof Business Administration Department of Business Administration Hong Kong Shue YanCollege Hong Kong PRC Louis TW Cheng Associate Professor of Finance Departmentof Business Studies Hong Kong Polytechnic University Hong Kong PRC

Int J of Human Resource Management 131 February 2002 156ndash182

The International Journal of Human Resource ManagementISSN 0958-5192 printISSN 1466-4399 online copy 2002 Taylor amp Francis Ltd

httpwwwtandfcoukjournalsDOI 10108009585190110083839

Inevitably this transition encompasses not only trade but more philosophical issuesas well Chinarsquos trading partners have expressed continual interest in human rights therule of law copyright piracy and intellectual property (Deng et al 1996 van der Geest1998 Wei 1998) These dimensions not always welcomed by the Chinese (Wong2000) have become an integral part of the ongoing debate about Chinarsquos eventual (butcertain) entry into the World Trade Organization (Tait and Li 1997)

Accordingly ethical issues are likely to proliferate among them the concept ofprofessional conduct Although the Chinese government has invested extensively ineducation (MacDonald 1999) the needs are so vast that much more needs to be done(Zhu 1997) as management conduct is likely to become an evermore importantvariable in investment decision making As well it has been suggested that the morecompetitive the company the more likely it will bene t in the longer term from WTOmembership (Saywell 1999) in that business success now has been linked explicitly tobusiness ethics by many Western managers (Browne 2000 Butcher and Harvey 1999)Inevitably personnel professionals will be asked for input into the development ofethical standards (Ulrich and Black 1999) and into the creation of managementdevelopment programmes that lead to behavioural change rather than the surfacecompliance likely to result from traditional courses and seminars

It has been argued that the challenge of developing more uniform professionalconduct stems from the transition to a lsquosocialist market economyrsquo as inadequacies inboth laws and enforcement have weakened professional morality and social responsibil-ity while a cult of money-worship has arisen (Harvey 1999) While this phenomenonappears to exist the root cause may lie in a much more fundamental direction as guanxior relationship-based business practices can lead to a set of ethical priorities that differsfrom the Western norm (Steidlmeier 1997) Issues such as nepotism and corruption(Yeung and Tung 1996 Xin and Pearce 1996 Pearce and Robinson 2000) forexample have been linked closely to guanxi as has the passing on of proprietaryinformation (Barnathan et al 1996) Combined with differing concepts of honesty(Worm and Frankenstein 2000) it becomes apparent that the separation betweenChinese private and business life is slight (Pitta et al 1999) This concept makes iteasier to understand the underpinning philosophy of Chinese entrepreneurship iepatriarchal authority and a survivor mentality (Kao 1993) leading to extreme entre-preneurism and risk taking (Cragg 1995) Although the Chinese value system changesover time Whitcomb Erdenei and Li (1998) have suggested that Chinese businesspractitioners are more likely than their Western counterparts to engage in lsquoinformalrsquo(what may be regarded in the West as illegal) business activities

Thus we paint a scenario of business de ned by a complex dynamic web of multiplerelationships among the self others and the world (Linstone and Zhu 2000) Wong(1998) has described these lsquoguanxi constructsrsquo in terms of a positioning map depictingfour (insideroutsider) psychological relationships ndash fencer anceacute new friend oldfriend Similarly Tsui and Farh (1997) drew up an lsquointegrated frameworkrsquo in whichguanxi was comprised of role obligation friendship and social de nition Theseconcepts are complicated further by the Confucian roots of Chinese society whichemphasize hierarchy and the need to maintain harmony (Cragg 1995 Jacobs et al1995) leading to work environments that discourage both participation and systemsthinking (Bell 1998)

As the Chinese economy becomes more and more integrated into the global matrixhowever this management style will tend to create both ethical and operationalproblems (Wright and Szeto 2000) Indeed many Chinese professionals are highlycritical of both the personal ethical standards of superiors and co-workers as well as the

Wright et al Guanxi and professional conduct 157

prevailing ethical climate in their enterprises (Wu 1999) but lack the mechanismsto foster change as maintaining the superiorsubordinate relationship is paramount(Lee 1996)

The accounting eld provides an excellent example of the clash between guanxi andbusiness ethics as the Chinese Institute of Certi ed Public Accountants is not in astrong position to enforce ethical standards because of its relatively small size lack ofindependence and the preoccupation with the implication of standard accountingstandards In 1993 for example Chinese authorities introduced a new accountingsystem that contained lsquomany common aspects of Western accounting conceptualframeworksrsquo (Chang 1998) Further changes in management accounting have beenprepared (Lawrence 1997) In addition there have been other reforms aimed atintroducing more professional appraisal of internal control systems the adoption ofcomputer-assisted auditing and improving the skills of auditors (Jian Wua 1997)

These changes have been impressive In fact Mills and Cao (1996) predicted thatChinese accounting practice could become consistent with international standardswithin three to ve years There are still many nancial issues to address howeverincluding the large percentage of non-performing bank loans better asset valuation andthe need for a more viable bond market (Graham and Lui 1998 Wei-guo 1996Mehran and Quintyn 1996)

Even with much of the regulatory infrastructure in place however a major socialfactor that now must be considered is the effect of guanxi on accounting ethics (Chang1998) Based on this dilemma it is suggested that the inevitable and widespreadregulatory or legal changes wrought through WTO and other memberships in a varietyof arenas will have limited effect on professional practice unless they are accompaniedby fundamental behavioural change

Further we feel it unlikely that ethics education even if incorporated into pro-fessional development courses right from the beginning will lead to the internalizationof new behaviours Yet failure to address the problems may limit economic growth inthat variable standards of business ethics has been cited as a major risk factor ininvestment decision making (Foster 1997)

In order to illustrate the scope and the depth of the problem this study will explorethe guanxi concept as it relates to professional conduct Then a management develop-ment model originally based on the work of Stewart (1984) adapted by Belcourt et al(2000) and tested empirically by Wright and Geroy (1999) will be used to illustratehow individual behaviour might be modi ed

Throughout we will draw upon both current and previous research to illustrate thatguanxi concepts are not likely to disappear (Takahashi 1997) Indeed given that ethicalprecepts in China are complex and constantly changing (Wu 1999) it will be suggestedthat different types of guanxi not only exist (Li and Wright 1999) but can be harnessedin an ethical fashion to create wealth (Leung et al 1996)

Although guanxi and the many problems associated with guanxi occur in manysocieties (Li and Wright 1999 Kao 1993 Cragg 1995) we have focused our study onChina Given the perceived importance of Chinarsquos WTO membership to world tradeand the realization that China along with Latin America will have an ever-increasingaffect on the world economy (Norman et al 1994) it was felt that more knowledgeabout ethical behaviour needed to be acquired In addition there is some hope thatchanges in behaviour are possible as human resources practices in China appear to beconverging toward a more Western norm (Warner 1997) so that our research ndingsmay t into future work environments

158 The International Journal of Human Resource Management

Review of the relevant literature

Guanxi and business

Guanxi refers to a special kind of relationship characterized by implicit rules both ofobligation and reciprocity (Chen 1996 Hwang 1987 Luo 1997a Yeung and Tung1996) Guanxi-based relationships can grow into highly-complex networks constitutinga lsquohighly differentiated intricate system of overt or covert as well as formal andinformal social subsets governed by the unwritten law of reciprocityrsquo (Wilpert andScharpf 1990) These relationships underpin much of the business conducted in China(Buttery and Wong 1999) Indeed it has been suggested that guanxi-based relation-ships constitute the most effective and ef cient marketing tool (Luo 1997b)

The four main elements of guanxi are trust favour dependence and adaptation(Wong 1998) which often lead to insider-based decision-making (Wong 1997) Thusprivate sources of information and resources made available to a select group are usedin activities ranging from smoothing transport dif culties to collection of payments(Leung et al 1996 Seligman 1999 Barnathan et al 1996)

The entire process (eg giving face the exchange of bene ts favours andinformation) is based on trust (Xu 1996 Wong and Chan 1999 Yi and Ellis 2000)leading to reciprocal obligations that are almost impossible to refuse (Hong and Speece1998 Tsang 1998 Luo 1997a) The result appears to be that under conditions of poorlegal infrastructure (in particular poorly developed or enforced contract law) guanxiaffords lsquocertain transaction cost advantagesrsquo (Standi rd and Marshall 2000 Xinand Pearce 1996) In fact Luo and Chen (1997) have suggested that guanxi-basedbusiness variables are lsquosigni cantly and positivelyrsquo related to accounting and marketingperformance

The spectre of what many Westerners believe is unethical behaviour howeveralways seems to exist Indeed even basic concepts like truth may not be relevant inEastern thinking lsquoThe Chinese manager may well be motivated to save ldquofacerdquo and totell the other person what they want to hear rather than what may be regarded as theabsolute truth in Western eyesrsquo (Jackson and Bak 1998 3)

As well insider dealings can lead to corruption (Yi and Ellis 2000 Pearce andRobinson 2000) Even when there is no illegal intent the line between bribery and giftgiving for example can be very ne indeed (Pitta et al 1999) This concept isexplored in-depth by Steidlmeier (1999) who argues that moral guidelines need tobe developed and communicated widely an activity that is incorporated into ourmanagement development model (Figure 1)

Finally it has been found that guanxi exists at different levels Li and Wright (1999)have discovered for example that personal guanxi exists alongside corporate ororganization-to-organization guanxi They suggest that as personal guanxi might lead tocorruption ndash a view shared by Snell (1999) and others (Does custom 1997) ndashorganization-to-organization guanxi should be encouraged Again we believe aneffective management development initiative can help to introduce this alternativeconcept to Chinese professionals

Guanxi and ethics

It has been argued that generally-accepted ethical precepts are indispensable if global-ization is to spread (Kung 1997) Within this context we can view guanxi as quite


different from bribery and corruption (Steidlmeier 1999) Indeed as suggested pre-viously in view of Chinarsquos poorly-developed legal and distribution systems guanxinetworks may provide the only ef cient alternatives (Wong and Chan 1999 Luo1997b) Too it has been suggested that guanxi-type systems are likely to creep intoWestern business practices especially in areas such as relationship marketing andlsquovirtual integrationrsquo (Louett et al 1999)

Where ethical dilemmas need to be addressed is when relationship-based behaviourleads to fraud dishonesty and the felt necessity to support or to ignore othersrsquo unethicalbehaviour Obeying a boss who is behaving unethically (a phenomenon not restricted toAsian societies) vulnerability to control by unethical bureaucracies enrichment at theexpense of others lsquocreativersquo accounting ndash all these issues (and more) combine to givethe guanxi concept a dubious reputation in Western eyes (Foster 1997 Snell 1999Does custom 1997 Cooper et al 1997 Lu 1997a Steidlmeier 1999) It must beremembered however that China does not have a unique problem there are signi cantdifferences in what is regarded as ethical management around the world (Carroll andGamon 1997)

In China too there are many professionals who are dissatis ed with the prevailingmorality (Harvey 1999 Wu 1999) In addition much of Confucian philosophy (theunderpinning of Chinese society) is concerned with roles of conduct and appropriate-ness of action (Cua 1999) so the conditions for change already may be in place Whilewe agree that ethics should be incorporated into accounting courses (Chang 1998) wewill argue that training alone will have little effect on economic development Anapproach adapted from Confucian ethics however might form the basis of an altern-ative management development initiative (Chen 1995)

Confucianism and guanxi

Here we draw on the work of Chen (1995) in that the Confucian ethic underpins muchof Asian managerial thinking In summary the Confucian ethic leads to a type ofcapitalism in which the self is seen as the centre of a relationship web This conceptfosters self-discipline self-improvement the acceptance of consensus decision-makingand the willingness to co-operate In addition management tends to revolve aroundpatterned behaviour and ritual The result is that faced with the need to maximizepro t the Asian manager will enlist and attempt to mobilize relatives and trustedintimates Hence guanxi becomes an indelible part of the business ethos leading toethical or unethical behaviour depending upon the mix of individuals involved

Similarly Jacobs et al (1995) suggest that Confucianism has left a negative legacyas the philosophy with its emphasis on order and harmony can lead to inertia Thisconcept is explored further by Lee (1996) who stressed that the modern manifestationof Confucian ideology makes relationships more important than a contract Yet Jacobset al (1995) conclude by illustrating how the Confucian sense of order might be alignedwith Western management practice One of the basic Confucian values for example isvirtue in onersquos task meaning that a high value is placed on the acquisition of skills thatallow one to perform better in the workplace Employees who advocate Confucianvalues therefore should appreciate the training offered by their companies (Chan2000)

Thus we argue that the fundamentals that might lead to behavioural change (eg self-discipline and reverence toward education) are in place They will need to be identi edand utilized however if management development initiatives are to succeed


Western management thought and the guanxi phenomenon

In terms of blending Asian and Western thinking into a coherent managementdevelopment strategy we draw rst from the work of Handy (1998) and Mintoff andDenton (1999) Handy for example emphasizes the need for a lsquoproper educationrsquo anda lsquoproper sel shnessrsquo so that business becomes more than mere pro t for the sake ofpro t It is felt that Handyrsquos ideas blend with Confucian ideology in that both espousea social consciousness and the use of collective strength to make the world better

Similarly Mintoff and Denton (1999) explore the concept of spirituality in theworkplace Again their ideals based on the creation of socially responsible and values-based organizations seem to mirror the basic tenants of the Confucian ethic Thus thepossibility exists for the Asian sense of social responsibility and duty to be blendedwith the Western sense of a socially-responsiblevalue-based organization to convinceprofessionals that permanent behavioural change is both ethical and bene cial Thevehicle for this transformation can be a management development initiative that bridgesboth cultures

Indeed with the rapid evaluation of Chinese business practice (Abramson and Ai1999) and the subsequent increasingly outward looking orientation (Kienzle andShadur 1997) there is much to suggest that Western relationships and Eastern guanxishare many common characteristics (Hui and Graen 1997 Wong and Chan 1999) Infact Chinese employees appear to respond to Western-style management relationshipsas Tjosuold and Moy (1998) have found that managers who initiated open-mindeddiscussions with Chinese employees on contentious issues had better relationships (andproductivity) than their more traditional authoritarian counterparts Thus althoughrelationships need to be cultivated continuously (Fock and Woo 1998) it appearspossible to link Western ideas with Eastern precepts as those involved with relationshipmarketing have shown (Wong and Tam 2000) There is even some evidence to sug-gest that Chinese participants are highly enthusiastic about Western-run managementdevelopment seminars as they are regarded as lsquopractical and openrsquo (Ko 1998)

Training in China

As suggested previously one of the key factors inhibiting Chinarsquos economic develop-ment was the primary focus on industrialization rather than education and the subse-quent neglect of professional and managerial skills Since 1978 however a series ofreforms have brought unprecedented changes to the managerrsquos job while stressinghuman resources development (Zhu 1997) The Chinese Governmentrsquos increasingemphasis on employee training and development has resulted in a rapid growth invocational education and training The number of technical schools increased from 370(with 120370 students) in 1992 to 4392 (with 1566000 students) in 1996 Thenumber of employment training centres established by large enterprises or localgovernments rose to 2406 in 1992 with an annual training capacity of 11 million It isestimated that during the period 1979 to 1985 over 8 million managers and supervisorsattended some kind of management training (Child 1994 Zhu 1997)

While the scale of Chinarsquos management education and training effort is impressiverepresenting a clear manifestation of the regimersquos determination to modernize itseconomy employer-sponsored training remains a major weakness Very few enterpriseshave drawn up systematic programmes of training and development Too little is knownabout the effectiveness of the programmes that do exist (Chan 2000)

As well lack of a training infrastructure remains a major barrier to the developmentof successful training programmes In addition there is a desperate need to develop a


critical mass of Chinese trainers (McCain and Wagner 1999) These weaknesses arecompounded by the traditional emphasis on quantitative rather than qualitative knowl-edge and by a poor appreciation of training priorities (Branine 1996) As yet mostChinese scholars have not seen the necessity to develop programmes that consolidateand integrate management knowledge in order to contribute to economic growth (Mak1999) preferring instead to emphasize rote learning with its emphasis on teacher-ledactivities allowing for every little discussion (Chan 1999 Southworth 1999)

Still in the private sector many changes are evident Learning in international jointventures for example needs to emphasize collaboration so that work environmentsconducive to inter-cultural learning are created (Liu and Vince 1999) These trainingactivities also need to explore cultural values and business philosophy in order to relatethem to traditional Chinese thinking and group-oriented culture (Li 1999 Tsang1999) Thus HR professionals are learning themselves how to transfer learning acrossmultinational af liates (Bjorkman and Lu 1999) Current trends therefore include amove toward a professional orientation competency development adaptive curriculumplanning and matching management training with the rmrsquos strategic direction (Wong1999) In fact in some multi-national organizations the accent is on preparing partici-pants for the demands of global management by combining outward-bound activitieswith cultural-training comprised of two week assignments in different countries(Whittenberg-Cox 1999) These initiatives tend to deal more effectively with peoplemanagement issues seen as the most critical business challenges in todayrsquos China(Wright et al 1998) The theory is that knowledge and skill cannot ow from senderto receiver but must be reconstituted and re-created (Berrell et al 2001 Newell1999) The idea is to develop a third culture (Hui and Graen 1997) by allowingChinese managers to adopt and adapt those aspects of management philosophy andpractice judged to be most useful (Fan 1998) In the process the overarching goal is todevelop Chinese managers with eight traits achievement motivation supervisoryability intellectual ability self-assurance decisiveness initiative and need for security(Tabak et al 1998) These issues t well with the development initiatives we areproposing

Coaching and Chinarsquos development

Given that training changes behaviour only in controlled circumstances (Wright andGeroy in press) a more sophisticated approach needs to be developed Coaching is atechnique that has shown great promise having progressed beyond the lsquofadrsquo category tojoin the mainstream of management practice (Hamilton 2000 McDermatt 1996 Shulaand Blanchord 1995) The de nition of a coach varies ndash sounding board bossstrategist agent psychiatrist or nag ndash depending upon the coach the business situationand client needs (Hamilton 2000 G3) The results continue to be impressive In onestudy for example it was found that a conventional managerial training programmefollowed by eight weeks of executive coaching increased productivity by 224 per cent(Olivero et al 1997)

These challenges require a new kind of manager one who is able to empower andto counsel for improved performance (Salters 1997) Current literature stresses thesethemes repeatedly Ackerman (2000) for example suggests that relationships are onlyas strong as the natural alignment between the identities of the participants while Daviset al (2000) discuss the conscious creation of human capital Similarly Champy andNohria (2000) examine the leadership dynamic in detail suggesting that leaders inspirea greater purpose in others The focus then is on performance and coaching appears


to have become a primary vehicle for changing workplace behaviour (Langdon 2000Fuller and Furrington 1999 Hale 1999)

Thus the general thrust toward increased expenditures on human resource develop-ment in China (Zhu 1997) needs to focus on the development of productive workenvironments (Warner 1999) Indigenous managers must learn to carry most of theburden here as Chinese employees nd it easier to interact with Chinese managers(Wong and Lau 1999) Therefore coaching needs to be added to the Chinese man-agement style so that organizational learning strategies aimed at continuously updatingknowledge can be initiated (Sergeant and Frenkel 1998)

Theoretical framework

The theoretical underpinnings of our work revolve around Stewartrsquos (1984) model ofmanagement work (Figure 1) in which she used the analogy that a managerrsquos job iscomprised of two concentric yet exible rings The inner ring encompasses the core orroutine demands of the job This space is surrounded by a parameter enclosing a exible area of discretion representing those tasks about which no two managers wouldmake identical decisions The whole is surrounded by constraints eg nanciallimitations company policies economic and market conditions This concept wasadapted into a training mode by Belcourt et al (2000) in that the core skills were seen

Figure 1 The managerrsquos job


as amenable to training while skillsknowledge related to the area of discretion (de nedas leadership) was seen as the purview of coaching Indeed the provision of richexperiences through a variety of means including job rotation mentoring and exposureto world-class operations is regarded as a key element in career development forChinese professionals (Shi and Wright 1999)

In view of Olivero et alrsquos (1997) operationalization of this concept and Chanrsquos(2000) ndings that in China self-ef cacy is related closely to treatment by supervisorswe propose that coaching can become an effective methodology for challenging ethicalbeliefs and then changing behaviour As suggested by Chang (1988) ethics can beincorporated into training courses but using ethical concepts in the workplace requiresdiscretion andor judgement These skills are unlikely to be honed in the classroom

In addition we draw on Wright and Geroyrsquos (1999) previous research whichsuggested that training is effective only under strictly controlled circumstances Forknowledge to be passed on in the workplace for example usable categories need to bedeveloped eg

c basicc generalc technicalc rm speci c

Each skill knowledge level must be met before proceeding to the nextAs the root cause of many workplace problems (in all cultures) is inadequate man-

agement (DuBrin and Harper 1997 Wright and Szeto 2000) no amount of trainingwill enhance productivity (much) until management style changes Changing manage-ment style (and therefore the way employees are treated) is a long-term activity thatmay require intensive coaching but rarely training (Whetton and Cameron 1995)Thus our concept of the development of an ethical workplace appears to t closely withprevious work In this paper we will attempt to illustrate how Chinese professionalsview ethics in the workplace Using these constructs we will build upon past researchto design a management development methodology that ts the speci c dimensions ofthe Mainland Chinese culture

Research methodology

Data collection in emerging societies is a dif cult task as there is little tradition ofindependent enquiry (Adair 1995) Indeed asking questions in any form is viewed withsuspicion (Wright and Hoa 2000) As well much of what happens in business is theresult of relationships This phenomenon makes it unlikely that strangers will respondto academic enquiry Without connections little data are likely to be gathered (Berrelland Wright 1999 Shi and Wright 1999) An additional problem occurs when askingfor information of a personal nature For many years all employees had a lsquopersonnel lersquo that followed the individual for life Any material in that le could (and might) beused against an individual Although the situation in mainland China has changedat least for those in the private sector the reticence remains about providinginformation

In order to surmount these dif culties data were collected at two locations insouthern China with the aid of participants in a management development programmeUsing the traditional respect paid to scholars to create a trusting learning atmospherethe lsquosnowballrsquo method was used in that each participant was responsible for collectingten questionnaires from among the professional staff at hisher place of employment


While this method dose not ensure randomness given the dif culty of collecting datain China it was felt that a judgmental technique would be acceptable provided nountoward claims of generalizablity are made (Weiss 1994) This methodology also wasutilized in Indonesia by Swecka (1998)

Our questionnaire was designed to test two dimensions ndash the strength of the guanxiconcept and the in uence of guanxi on behaviour in a number of hypotheticalsituations Despite the well-documented existence of guanxi it was felt best to measureits strength in our group as

1 the nature of guanxi can change our time and possibly with location (Shi and Wright1999)

2 as in any culture Chinese as individuals are not completely homogeneous ndash whilethere might be strong tendencies pointing to group-based behaviour individuals still t onto a continuum that encapsulates the more individualistic to the more group-oriented (Dowling et al 1999)

Accordingly a fteen-statement questionnaire was developed translated into theChinese language and pilot tested The quality of translation was checked independentlyby two professors employed at Chinese universities

A forced-choice Likert scale (strongly disagree disagree agree strongly agree) wasused and statements designed to capture the strength of guanxi were interspersed withquestions that sought to determine how the concept might affect behaviour (Figure 2)The necessary guarantees of con dentiality were put in place Note that statements havebeen grouped here to facilitate analysis

The rst level of data analysis yielded the descriptive statistics necessary to obtain asummary of the data (Tables 1 and 2) Then Phi( a ) coef cients were calculated forselected variables to determine further if signi cant differences existed (Table 3)Finally t-values were used to compare mean scores by gender position company typeand education level (Table 4) The rationale for using these methodologies was thatmanagement development processes might need to be tailored to deal with the percep-tions of speci c groups or perhaps focussed on identi able subsets of the population

While much of our work might be generalized to other Chinese societies it must bestressed that unique historical and cultural forces have led to the current sociologicalenvironment in China (Scarborough 1998) Even though Kao (1993) pursued the ideaof a lsquoChinese Commonwealthrsquo Tjosuold and Moy (1998) Davies et al (1995) and Wu(1999) all infer that there are differences not only among Chinese societies ndash eg HongKong Taiwan and mainland China ndash but among the various regions within mainlandChina This concept was supported strongly by Shi and Wright (1999) We regard ourwork therefore as relevant only in the mainland China context and more likely withina southern China environment (Erdener 1996) although our sample contained indi-viduals from many locations in China as internal migration to Guandong Province(where this sample was taken) has been massive

The research results

In terms of demographics Table 1 indicates the respondents came from a wide range ofbackgrounds and industrial sectors While middle managers comprised the largest group(n 5 374 451) both senior executives (n 5 260 314) and professionals (n 5 188227) are well represented In addition there is an almost even spread among private rms state-owned enterprises and joint venture companies ndash with 282 365 and 34 percent respectively In each case there was an extremely small representation from theownerentrepreneur categories


Seniority and age were spread across several decades as well ranging from newhires to one individual with 35 years on the job Similarly the youngest respondent was22 while the eldest had reached 69 years of age As one might expect from this typeof sample a large majority had completed at least an undergraduate degree (n 5 654796) Conversely just over 25 per cent (n 5 224) had work experience outsidemainland China

Perhaps the least representative portion of the sample concerned gender as only aquarter of the respondents were female (n 5 207) While this number was typical ofenrolment in the management development programme it is not representative of theworking population

In summary although mindful of Weissrsquo admonitions against generalizing from ajudgmental sample our respondents represent a widely varied population so that ourresearch has lsquofacersquo validity (Patton 1982) As well in that only 63 per cent (n 5 52)did not possess some form of post-secondary education we argue that our pro le of theChinese professional is suf ciently accurate to draw conclusions to be tested throughfurther research

Figure 2 Likert statements designed to measure perceptions of guanxi- and ethics-basedbehaviour


The descriptive statistics (Tables 1 and 2) present a composite of two constructs ndashthe strength of guanxi and ethical precepts relating to guanxi The Likert statements 1through 8 were designed to measure practical dimensions of guanxi Here we exploredvarious dimensions of friendship The exception was statement 1 which tested a morepragmatic issue whether or not guanxi extended to the ability to borrow moneyStatements 9 through 15 outline situations related to ethics Anecdotal evidence andwork experience in China were drawn upon to develop a list of Likert statementsthought lsquotypicalrsquo to what is happening in China today No one of course knows howwidespread these activities are but they were accepted during the pilot test (threeChinese scholars from Mainland China and two Chinese managers) without comment

In terms of guanxi-related statements there was a strong tendency to lsquoagreersquo(statements 2 4 5 7 8) or in the case of statement 6 (pro ts are more important thanfriendship) to disagree (649 per cent) (Table 2) Thus our respondents seem toindicate that friendship ties are very strong across all categories The exceptionsconcerned borrowing money (statement 1 and 3) Here respondents were asked to scalespeci c questions

c I would have little trouble borrowing money c I would nd it hard to refuse a request even if it cost me money

Table 1 Sample demographics

Position(1) Manager 451 (n 5 374)(2) Senior staff eg GM 314 (n 5 260)(3) Owner 08 (n 5 7)(0) Others eg professional s 227 (n 5 188) Total n 5 829

Years in position Mean 5 82069 Min 5 025 Max 5 35 SD 5 66548 n 5 830

Age Mean 5 369058 Min 5 22 Max 5 69 SD 5 77775 n 5 839

Gender(1) Male 754 (n 5 636)(2) Female 246 (n 5 207)

Company type(1) Private 282 (n 5 239)(2) State owned 365 (n 5 309)(3) Joint venture 340 (n 5 288)(0) Others 13 (n 5 11)

Number of employees in co Mean 5 386755 n 5 800

Number of subordinate s Mean 5 5728 n 5 753

Education level(1) Secondary 63 (n 5 52)(2) Some post secondary 141 (n 5 116)(3) University degree 796 (n 5 654)

Work outside China(1) Work for year Mean 5 1439 Min 5 025 Max 5 30 SD 5 388 n 5 224(2) None 751 (n 5 553)

NoteSD 5 standard deviation


Both these requests were scaled negatively but statement 3 barely so as only 512 percent tended to disagree As Li and Wright (1999) have found that guanxi exists at twolevels ndash personal and organizational ndash it is not dif cult to speculate that a personalrequest to borrow money might be refused even though the overall business environ-ment is guanxi-driven

We can conclude therefore that guanxi is an important part of these respondentsrsquolives The extent to which this concept in uences behaviour however may be limitedas (for example) it does not seem to include lending money This discovery also tswell with previous research that suggests guanxi may be changing over time and thatthere are different types of guanxi (Li and Wright 1999 Shi and Westwood 2000)

What of the ethical rami cations that stem from these strong guanxi relationshipsAlmost 40 per cent of the population would lie to help a colleague evade taxes(statement 9) Similarly virtually 60 per cent actively try to nd loopholes inregulations (statement 10) while 88 per cent would lsquobend regulations to their advantage(statement 11) Perhaps more important 32 per cent believe that business groupsengage in illegal activities and more than a quarter (273) lsquoagreersquo that lsquobusiness

Table 2 Responses to Likert statements

Paraphrased statements(see Figure 2)

Stronglyagree Agree Disagree

Stronglydisagree

Total(n)

Statementtype

1 Would have little troubleborrowing

23(27)

177(205)

501(580)

163(189)

864(100)

Guanxi

2 Do favours wheneverasked

218(252)

594(688)

45(52)

7(08)

864(100)

Guanxi

3 Hard to reject colleaguesrsquorequests

52(60)

369(428)

395(458)

47(54)

863(100)

Guanxi

4 Most businesses dependon relationshi p

183(212)

443(512)

209(242)

30(35)

865(100)

Guanxi

5 Less interference inbusiness

270(313)

338(391)

209(242)

47(54)

864(100)

Guanxi

6 Pro t more important thanfriendship

49(57)

255(295)

473(547)

88(102)

865(100)

Guanxi

7 Help each other againstthe world

90(104)

505(584)

242(280)

27(31)

864(100)

Guanxi

8 Help members of innercircle

103(119)

477(553)

264(306)

19(22)

863(100)

Guanxi

9 Help colleague on taxevasion

30(35)

310(361)

398(463)

121(141)

859(100)

Ethics

10 Find loop holes inregulations

95(110)

417(483)

282(326)

70(81)

864(100)

Ethics

11 Would bend regulations 190(220)

571(661)

83(96)

20(23)

864(100)

Ethics

12 Many rms earn pro tillegally

38(44)

239(277)

455(527)

131(152)

863(100)

Ethics

13 Business groups do illegalactivities for bene t

24(28)

110(128)

504(584)

224(260)

862(100)

Ethics

14 Pro t above the law 12(14)

59(68)

500(579)

292(338)

863(100)

Ethics

15 Business practice andethics are not compatible

32(37)

204(236)

521(604)

106(123)

863(100)

Ethics


practice and ethics are not compatiblersquo Only when asked to scale the statement ndash it isall right to break the law as long as the individual or group prospers ndash is there strongdisagreement (917)

Despite the overall strength of the guanxi relationship however we nd consistentlythat limits are placed on how far the concept is allowed to in uence business practiceFrom the viewpoint of creating a management development programme therefore oneis not faced with an impregnable unalterable cultural construct but rather with adynamic set of precepts Thus different ethical norms might not be automaticallyrejected if introduced appropriately

Indeed it is suggested that a signi cant minority of Chinese professionals are pulledbetween opposing moralities On the one hand Confucian ideology infers that order andharmony should prevail on the other hand the reality of money worship combinedwith the felt need to thwart a suffocating bureaucracy exerts a signi cant in uence(Chan 1995) Thus a method must be found that instils ethical behaviour into a rmrsquosculture As elsewhere in the world this necessity presents a considerable challenge (IsEurope 2000) one that must be faced when developing both present and futureChinese managers We will argue however that coaching has suf cient cross-culturedattributes to be transplanted (in modi ed form) to China The concept appears to be exible enough to become a major avenue for installing more internationally acceptedethical norms

To explore the database further by determining if there were signi cant relationshipsamong gender position company type educational level and outside China experienceboth non-parametric (Phi-Coef cient) and parametric (t-test) statistics were appliedDifferences between variables were regarded as signi cant only if both tests showedsigni cance at either the 005 or 001 levels (Tables 3 and 4)

In terms of gender males tend to feel that lsquobusiness people should be free to operatewithout interference from governmentrsquo (5 Table 4) more strongly than females (meandifference (MD) 5 0180 signi cance (sig) 5 005) Similarly males were shown tovalue pro t over friendship more often than females (MD 5 0158 sig 5 005) incontrast to the gender trend (Table 4 6)

Given the very different socialization processes for males and females in China it islittle wonder there are gender differences in attitudes toward business practice DespiteMaorsquos famous statement that women hold up half the sky in general females still areraised to be nurturing caregivers while males are expected to be more aggressiveproviders (Leung and Ng 1999) It is surprising that more signi cant differences werenot found between the sexes Even given these data however it is likely that a commondevelopmental methodology will suf ce There is little signi cant evidence to indicatemen and women need to be treated differently

Two dimensions of position also were measured ndash managers and senior staff Hereit was found that more senior managers would tend to lie to help a colleague if thegovernment found out heshe was cheating on taxes (9 Table 4) (MD 5 2 0145sig 5 005) Further to the tax evasion issue those employed by privately-ownedcompanies would have a higher tendency to help others than respondents from eitherthe state-owned or joint-venture sectors (9 Table 4) We can infer therefore thatas in other cultures morality is not a monolithic culture entity but varies across aspectrum of situation and demographic variables

In terms of a management development process however these data may beextremely signi cant If it holds true that more senior people tend to have a traditionalview of ethics eg they would tend to lie more often then coaches would have to bechosen with great care It is senior managers who are more likely to become coaches


Therefore they are apt to pass their personal views on to their younger colleagues Asimilar process occurs in North America among young police of cers They learn oneset of behaviours in police college then are taught how to really behave by theirsergeants upon joining a police force The two sets of behaviour often are quitedifferent

Given the high power distance between Chinese managers and their employees bothprofessional and non-professional it is unlikely that junior managers would be able toresist or even comment upon unethical behaviour (Jackson and Bak 1998) Thus anorganization-wide strategy becomes especially important (Tietjen and Myers 1998)should any change be desired When relationship dependency (4 Table 4) wasexplored in more depth by comparing respondents from state-owned enterprises withthose who work in joint ventures it was found that state employees tended to dependmore on relationships (MD 5 0129 sig 5 005) Conversely those in wholly-ownedprivate rms would tend to help their lsquoinner circlersquo more than either employees in jointventure or state-owned rms (MD 5 0182 sig 5 001 and MD 5 0132 sig 5 005)again supporting the concept that guanxi is not a static phenomenon (Wu 1999) butcan be changed to t the work culture

Thus the core training (Figure 1) might need to be adapted to suit severalconstituencies as the various sectors could have a different starting point The needs

Table 3 Degree of homogeneity (phirsquos coef cient)


Gendera

Positiona

Companytypea

Educationlevela

WorkoutsideChinaa


2 0046 0046 009 0114 2 007

2 Do favours whenever asked 0029 01 004 0026 00363 Hard to reject colleaguesrsquo

requests2 0061 0062 0031 0046 0067

4 Most businesses depend onrelationship

2 001 0091 01 0032 2 0073

5 Less interference in business 2 0068 0128 0084 0056 2 00376 Pro t more important than

friendship2 0082 0095 0037 0066 2 0069

7 Help each other against theworld

2 0006 0046 0078 0031 0000

8 Help members of inner circle 2 0052 0035 0096 0109 00429 Help colleague on tax evasion 2 0064 0124 012 0046 0015

10 Find loop holes in regulations 2 0047 0042 0062 0041 2 000311 Would bend regulations 2 0017 0042 0148 0033 001912 Many rms earn pro t illegally 0003 0065 0098 0018 2 008313 Business groups do illegal

activities for bene t0026 0053 0054 0028 2 0028

14 Pro t above the law 2 0014 0053 0106 0049 2 005115 Business practice and ethics are

not compatible0032 0052 0066 0054 0013

Notes 001 level of signi cance 005 level of signi cance


Tabl

e 4

Mea

n di

ffere

nces

for

gen

der

posi

tion

com

pany

typ

e e

duca

tion

leve

l an

d fo

reig

n ex

peri

ence

Para

phra

sed

stat

emen

ts(s

ee F

igur

e 1)

Gen

der

mal

evs fe

mal

e

Man

ager

svs se

nior

staf

f

Pri

vate

ly-

owne

dvs st

ate-

owne

d

Pri

vate

ly-

owne

dvs jo

int

vent

ure

Stat

e-ow

ned

vs join

tve

ntur

e

Seco

ndar

yvs so

me

post

seco

ndar

y

Seco

ndar

yvs un

iver

sity

Som

e po

stse

cond

ary

vs

univ

ersi

ty

Wor

kou

tisd

eC

hina

vs no f

orei

gnex

peri

ence

1W

ould

hav

e lit

tle

trou

ble

borr

owin

g0

131

000

90

670

087

00

020

035

2

035

6

000

40

003

2D

o fa

vour

s w

hene

ver

aske

d2

000

90

023

002

72

003

52

006

30

059

20

050

20

109

20

046

3H

ard

to r

ejec

t co

llea

gues

rsquo re

ques

ts0

072

20

064

001

50

058

004

32

007

80

006

008

42

011

04

Mos

t bu

sine

sses

dep

end

on r

elat

ions

hip

20

018

008

22

002

40

105

012

92

001

62

006

82

005

20

112

5L

ess

inte

rfer

ence

in

busi

ness

018

02

011

42

006

92

006

10

009

021

42

001

52

022

80

153

6Pr

ot

mor

e im

port

ant

than

fri

ends

hip

015

82

010

90

046

009

60

050

20

236

20

165

007

10

090

7H

elp

each

oth

er a

gain

st t

he w

orld

20

054

006

10

064

004

22

002

22

019

72

017

00

027

000

48

Hel

p m

embe

rs o

f in

ner

circ

le0

071

006

80

182

0

132

20

051

000

70

176

016

9

20

075

9H

elp

colle

ague

on

tax

evas

ion

004

92

014

50

143

028

2

013

90

070

014

70

078

20

080

10Fi

nd l

oop

hole

s in

reg

ulat

ions

005

82

008

30

144

010

12

004

32

009

82

007

80

020

20

033

11W

ould

ben

d re

gula

tions

002

92

009

70

184

0

012

20

172

2

001

12

002

02

000

92

003

612

Man

y

rms

earn

pro

t i

lleg

ally

20

004

20

023

021

3

005

72

015

62

006

42

008

32

001

90

148

13B

usin

ess

grou

ps d

o il

lega

l ac

tivit

ies

for

bene

t2

005

42

002

60

135

003

62

010

02

015

12

012

70

024

006

3

14Pr

ot

abov

e th

e la

w2

076

007

80

170

0

163

2

000

72

022

62

021

10

015

001

915

Bus

ines

s pr

acti

ce a

nd e

thic

s ar

e no

tco

mpa

tibl

e2

054

20

068

004

00

046

20

037

20

166

20

129

003

72

005

8

Not

es

sign

ica

nce

leve

l

005

sign

ica

nce

leve

l

001


analysiscourses development processes will have to be handled with sensitivitybearing in mind that work cultures can vary considerably even among organizations insimilar sectors Further credence was found in Table 4 (11) for the concept thatbending the rules would tend to be more pervasive among respondents in both privatecompanies and joint ventures than in state-owned enterprises (MD 5 184 sig 5 001and MD 5 2 0172 sig 5 001) This illustration lends support to anecdotal evidenceabout the bureaucratic nature of the state sector Similarly those in the privately-ownedsector would tend to place pro t above friendship more often than either state or joint-venture employees

The idea that many business groups place earning pro t above obeying the law(Table 4 14) was scaled more positively by those employed in wholly-ownedsubsidiaries (MD 5 017 sig 5 001) and by joint venture respondents (MD 5 0163sig 5 001) than by state sector employees Perhaps this result can be attributed to thecult of lsquomoney worshiprsquo described by Harvey (1999) in which higher values might tendto be sublimated in the pursuit of wealth

Conversely Child (1994) ndash following Tung (1991) ndash suggests that rule enforcementand external rewards can be used as motivators in China in that well-de ned parametersare appreciated given the generally low tolerance for uncertainty (Chimezie et al1993) Core training then might begin the process of changing ethical normsespecially if training is supported by well-communicated and enforced policies

When educational levels were examined only two variables were found to besigni cant It appears that secondary school graduates perceive they would have moreopportunity to obtain loans from friends than all other education categories (Table 41) Similarly those with some post-secondary education would tend to help theirinner-circle of contacts more often than university graduates (MD 5 0169 sig 5001) It is possible therefore that strength of guanxi might vary with education levelas those with lesser education seem to value relationships (on at least two dimensions)more strongly These differences are not unlike those found in many cultures in thatvaried educationskill levels necessitate a staged approach to training eg working frombasic through general technical and nally to rm-speci c concepts (Wright andGeroy 1999) Thus the beginning point of knowledge is taken into account and allfurther learning is built upon an appropriate base

One of the most salient characteristics that separates the respondents is foreignexperience Two variables were found to be signi cant Those who had not workedoutside China would nd it harder than their more cosmopolitan colleagues to refuse tohelp a colleague even if it cost them money (Figure 4 3) ndash MD 5 011 sig 5 005It is possible then that guanxi weakens with outside exposure but only one variable onthe guanxi portion of Table 1 (statements 1 through 8) was signi cant so much moreresearch would need to be conducted on this issue

The second signi cant variable concerns ethics Respondents with outside experienceagreed more strongly with the statement lsquomany business groups engage in illegalactivities to further their interestsrsquo (Table 4 12) ndash MD 5 0148 sig 5 005 One canbut speculate as to the reasons for this tendency Perhaps exposure to less guanxi-oriented business environments allows these individuals to view their world from adifferent perspective Then they might have inculcated different de nitions of what isillegal

Based on these data however one might be more likely to nd suitable coaches fromamong those who have lived or worked outside China Evidence from Hong Kongand elsewhere suggests that outside exposure can lead to the development of less


authoritarian management styles (Wright and Szeto 2000) Although direct evidence isscanty we speculate a similar process might occur for mainland Chinese managersThus over time a cadre of potential coaches might be developed especially if it isfound that new management styles include different ethical precepts

From a management development perspective further quantitative analysis yieldedlittle that would change our previous overall supposition that guanxi is a major factorin our respondentsrsquo lives and in turn that guanxi can affect work behaviour Notunexpectedly we know now that the sample is not homogeneous Our programmedesign needs to be exible enough therefore to accommodate variances in outlook andin organizational culture

We have con rmed as well that guanxi plays an important role in Chineseprofessional life Perhaps more importantly our data suggest guanxi might lead to lessthan ethical conduct (from a Western viewpoint) in a variety of spheres Although notall the scaled statements suggested that a majority of respondents would tend to engagein perceived unethical behaviour in virtually every instance a sizable minority mighttend to do so (Table 2) Similarly quantitative analysis has isolated several variablesthat support this concept (Tables 3 and 4) In particular the dichotomy between thosewith foreign work experience (an ever-growing minority) and respondents with no rst-hand knowledge of outside practices would seem to be important as those withforeign exposure can be used both as a resource to lend credibility to managementdevelopment interventions and possibly as coaches

Given that ethical behaviour and long-term pro tability appear to be inextricablylinked (Browne 2000 Butcher and Harvey 1999) it is essential that both Western andChinese managers grapple with this dilemma especially in view of the increasedeconomic activity likely to be generated through WTO membership We argue as wellthat management development if con gured appropriately can have signi cantin uence on workplace behaviour The challenge will be to nd realistic methodologiesthat can be applied in both state-owned and private-sector enterprises

Ethics and the management development function

Changing behaviour is a complex process especially when dealing with deeply-engrained precepts in the morality andor ethical realms As Chang (1998) found in herinvestigation of accounting and ethics in China it is likely that traditional training haslittle to offer beyond perhaps the creation of an awareness about corporate policiesand regulations This is not to argue that lsquoawarenessrsquo is not the rst step As early as1964 at Canadian General Electric Ltd for example the ethics code for receiving giftsfrom suppliers was lsquoif you canrsquot eat it drink it smoke it or use it in one day ndash donrsquotaccept itrsquo Such simple (and practical) rules can be taught and reinforced easily Herehowever we are dealing with much more complex concepts concepts that involve theunderlying morality of most Asian cultures (Li and Wright 1999)

Thus a much more intrusive and intense intervention is needed one that developsvalue by increasing the intellectual assets of the organization (Hope and Hope 1998)through the development of a supportive climate that encourages professionals tocontinue along a prescribed developmental path (Morris 1992) Our intervention thenneeds to change behaviour through leadership As Ticky (1998) has suggested the bestleaders are ones who teach either by coaching or by deliberately embodying personalvalues and aggressively encouraging employees to use these values in their owndecision making This concept ts the Chinese culture well Hence we return to the


intellectual underpinnings of our management development model in that the area ofdiscretion allows Chinese professionals to interpret and then apply ethical norms

To operationalize these ideals however requires a more pragmatic approach onethat combines strategy with needs-driven processes designed to meet both individualand organizational goals Although the ideal would be to form learning partnershipsamong all levels of managers and professionals sharing the responsibility for de ningneeds and for designing and implementing the best possible professional-developmentexperience (Shandler 1996) for the Chinese manager even moving part way towardthis model presents immense problems given the authoritarian culture in most Chinese-managed enterprises (Wright and Szeto 2000) Indeed many expatriate managers haveadopted a quasi-authoritarian management style in order to meet employee expecta-tions and to keep lsquofacersquo (Swepson 1999)

Despite these caveats we suggest Belcourt et alrsquos (2000) model (Figure 1) can beadapted to China For our purposes we will ignore the constraints (as most managershave little control over them) concentrating instead on the core and on the discretionaryconcepts to illustrate how business ethics can be inculcated into a corporate cultureeven if the overriding management philosophy is authoritarian an attitude not likely tochange in the near future

Given that the role of the senior manager (in China as elsewhere) is to develop aguiding strategic framework (Finigin and Walsh 1998) the initial impetus must comefrom the top Otherwise little is likely to be accomplished (Broad and Newstrom 1992Zhu 1997 Sergeant and Frenkel 1998) Should this encouragement example and driveexist then the model can be applied First we have discussed how core concepts arelikely to lead themselves to training provided the necessary policies and procedureshave been put in place (Wright and Geroy 2000) Thus professionals can learn aboutproper ethical conduct in a formal manner As training is valued highly in China andas formality is culturally acceptable (Meridian Resource Associates 1998a b) as anunderlying process traditional classroom learning (even exams are customary) willpass on basic knowledge about what kind of behaviour is expected (Bjorkman and Lu1999)

As on average 70 per cent of trained knowledge is never applied in the workplace(Belcourt and Saks 1999) and as guanxi-based behaviour is deeply embedded in theChinese psyche we have argued that training by itself is unlikely to create long-termbehavioural change Indeed it has long been suggested that a maintenance functionneeds to be in place if training is to have any lasting effect (Saks and Haccoun 1997Wright 1984)

Thus we turn to the second discretionary portion of the model (Figure 1) designedfor use in organizations characterized by their ability to accept innovation and change(Stewart 1997) The philosophy is to focus on a broad range of developmentalactivities but to emphasize on-the-job learning as the primary vehicle for personalgrowth and development (McCall 1992) providing the employee with multiple per-spectives and possibly even multiple areas of expertise (Dotlich and Cairo 2000)

As suggested previously the catalyst that drives this learning process is coachingAlthough in Western theory coaching occurs in an atmosphere lsquoconduciversquo to learningwhere the coach and the participant work together to identify needed behaviouralchanges and thus jointly search for opportunity to try out new behaviours (McDermatt1996) the authoritarian nature of most Asian workplaces is unlikely to allow this sortof relationship to exist Rather we envisage an lsquoapprenticeshiprsquo type of interactionwhereby the master (the senior person) lsquocoachesrsquo the lsquojuniorrsquo employee and provides a


role model This adaptation of the model whether it is used in Chinese- or Western-managed organizations ts more closely with Chinese cultural reality a necessarycondition for learning transfer (Whetton and Cameron 1995 Knowles 1990)

Although we are concentrating on business ethics the process described above mightbe used for a broad range of managementprofessional development activitiesSimilarly the ethical behaviour problem lends itself especially well to learning from themaster (Wong and Lau 1999) Although we envisage a more authoritarian approach tothe coaching function the essential elements of the model remain intact in thatcoaching still can become a lsquocontinualrsquo transfer of lsquoskillsrsquo (Whittaker 1993) or in thiscase ethical behaviour especially if we choose coaches from those who have hadprevious work experience outside mainland China

Thus we adapt the Belcourt et al (2000) model (Figure 3) bearing in mind thatchanging ethical precepts is unlikely to be attempted in isolation from all other aspectsof management development To make the model functional we have added lsquotop-level

Figure 3 Changing ethical behaviour in China


supportrsquo and policy modules for to repeat it is at the senior management level that theessential operating philosophy of the organization is crafted (Langdon 2000)

In Figure 3 transferring basic ethical knowledge remains the purview of training Assuggested previously knowledge needs to be categorized so that trainees obtain an in-depth grounding in both the discipline and company policy This function is surroundedby a exible discretionary component ethics in practice Here coaching or learningfrom the master is used to disseminate the day-to-day knowledge or advice that allowsparticipants to interpret ethical precepts in the light of operating a business in China

This lsquomasterlearnerrsquo relationship function remains exible as there is wide latitudefor interpretation and for designing lsquoappropriatersquo masterlearner relationships that tinto both Chinese national and the corporate cultures The core however can beprescribed eg what constitutes ethical corporate conduct is known and has beendiscussed widely (Handy 1998) Similarly senior managers need to be speci c as tohow they want their staff to behave Thus the training function leaves scant room forinterpretation Indeed a lsquochecklistrsquo approach to ethical behaviour might work well inauthoritarian cultures

Conversely the coaching function is situation speci c and can be operationalized ina variety of ways ranging from the long-revered lsquoone minute managementrsquo approachto more formal reward and feedback systems (Blanchard and Johnson 1983) Lastlychanging deeply-engrained behaviour especially in China is not a lsquoone-timersquo activity(Meridian Resources Associates 1988) There needs to be constant repetition andperseverance while leadership must be high pro le and constant (Meridian ResourcesAssociates 1998) Therefore we end where we began the key to changing behaviourlies in senior managementrsquos will and ability to change and to articulate the need forchange into concrete strategies policies and procedures (Black et al 2000) Only thencan management development methodologies (in any format) be effective

Thus a lsquopolicyrsquo and lsquosenior managementrsquo support modules also have been addedEthical behaviour needs to be supported by policy which in turn ows from the rmrsquosoperating philosophies and strategies The whole of course must be communicatedwidely and seen to be part of the organizationrsquos culture As culture is in large measuredetermined by senior managers their support and leadership by example becomes theunderpinning of the behavioural change process Hence the outer circle on which theentire model depends revolves around the actions and the beliefs of the seniormanagement team in particular the CEO This concept would not of course beapplicable only to China We suggest that Figure 3 can be adapted for use in othercultures Further we argue that authoritarian management styles although muchmaligned in Western literature (Buckingham and Coffman 1999) do not preclude theexistence of a functional management development process Rather than attempting theunlikely to change Asian concepts of management (And never 1997) therefore itis suggested that attempts be made to marry Western and Eastern concepts This paperillustrates but one example of the potential for blending East with West

References

Abramson N and Ai J (1999) lsquoCanadian Companies Doing Business in China Key SuccessFactorsrsquo Management International Review 39(1) 7ndash36

Ackerman L (2000) Identity is Destiny San Francisco CA Berrett-Koehler Adair JG (1995) lsquoThe Research Environment in Developing Countriesrsquo International Journal of

Psychology 30(1) 643ndash62And never the train shall meet (1997) The Economist 342(8010) 87ndash9


Barnathan J Crock S Einhorn B Engardio P Roberts D and Borrus A (1996) lsquoRethinkingChinarsquo Business Week 4 March 13ndash20

Belcourt M and Saks A (1999) lsquoTurning Training into Practicersquo Canadian HR Reporter May17 G7

Belcourt M Wright P and Saks A (2000) Performance Management Through Training andDevelopment 2nd edition Scarborough ITP Nelson Canada

Bell S (1998) lsquoManaging and Learning with Logical Frameworks the Case of an MIS Project inChinarsquo Human Systems Management 17(1) 16ndash28

Berrell M and Wright PC (1999) lsquoToward a Model of Teaching Through Case Studies inVietnam and Beyondrsquo Academic Exchange Quarterly 3(1) 32ndash9

Berrell M Wrathall J and Wright P (2001) lsquoA Model for Chinese Management EducationAdopting the Case Study Method to Transfer Management Knowledgersquo Cross-CulturalManagement 13(1) 28ndash44

Bjorkman I and Lu Y (1999) lsquoA Corporate Perspective on the Management of HumanResources in Chinarsquo Journal of World Business 34(1) 16ndash26

Black SJ Morrison AJ and Gregersen HB (2000) Global Explorers The Next GenerationOR Leader New York Routledge

Blanchard K and Johnson S (1983) The One Minute Manager New York Berkley BooksBranine M (1996) lsquoObservations on Training and Management Development in the Peoplersquos

Republic of Chinarsquo Personnel Review 25(1) 25ndash40Broad M and Newstrom J (1992) Transfer of Training Reading Addison-Wesley Browne J (2000) lsquoThe Amazing Future of Businessrsquo Fortune 6 March F37ndash9Buckingham M and Coffman C (1999) First Break all the Rules New York Simon amp

SchusterButcher D and Harvey P (1999) lsquoBe Upstandingrsquo People Management 30 June 37ndash42Buttery EA and Wong YH (1999) lsquoThe Development of a Guanxi Frameworkrsquo Marketing

Intelligence and Planning 17(3) 147ndash55Carroll S and Gamon M (1997) Ethical Dimensions of International Management London

SageChampy J and Nohria N (2000) The Arc of Ambition Cambridge MA Perigan BooksChan S (1999) lsquoThe Chinese Learner ndash a Question of Stylersquo Education and Training 41(67)

294ndash305Chan KT (2000) The In uence of Transfer Climate on the Transfer of Training and Moderating

Effects of Self-Ef cacy of Trainees Unpublished DBA thesis The Hong Kong PolytechnicUniversity

Chang J (1998) lsquoThe Guanxi Factor Accounting Ethics in Chinarsquo Australian CPA 68(8)44ndash6

Chartier C (1998) lsquoChina Economic Reforms and WTO Accessionrsquo Thunderbird Internationa lBusiness Review 40(3) 257ndash78

Chen M (1995) Asian Management Systems Boston MA International Thomson BusinessPress

Chen GB (1996) Negotiating with the Chinese London Dartmouth Publishing CompanyLtd

Child J (1994) Management in China During the Age of Reform Cambridge CambridgeUniversity Press

Chimezie A Osigweh Y and Huo Y (1993) lsquoConceptions of Employee Responsibility andRights in the US and Peoplersquos Republic of Chinarsquo The International Journal of HumanResource Management 4(1) 14ndash28

China and the WTO the Real Leap Forward (1999) The Economist 353(8146) 27ndash30Clifford M Roberts D Barnathan J Engardio P and Spiro L (1997) lsquoCan China Reform its

Economyrsquo Business Week 29 September 38ndash45Cooper T Wehrley M and Bao Y (1997) lsquoOrganizational Loyalty and Personal Ethics the

Moral Priorities of Chinese Cadresrsquo International Journal of Public Administration 20(10)1791ndash820


Cragg C (1995) lsquoBusiness on the Orient (Chinese business ethics)rsquo Accountancy Age 11 May20ndash2

Crispin S Gilley B Baum J and Islam S (1999) lsquoWide Open (China Taiwan andMembership of the World Trade Organization) rsquo Far Eastern Economic Review 162(16)64ndash5

Cua AS (1999) Moral Vision and Tradition Essays in Chinese Ethics Hawaii University Pressof Hawaii

Davies H Leung T Luk S and Wong Y (1995) lsquoThe Bene ts of ldquoGuanxirdquo the Value ofRelationships in Developing the Chinese Marketrsquo Industrial Marketing Management 24(3)207ndash15

Davis S Davis S and Meyer C (2000) Future Wealth Cambridge MA Harvard BusinessSchool Press

Deng S Townsend P Robert M and Quesuel N (1996) lsquoA Guide to Intellectual PropertyRights in Southeast Asia and Chinarsquo Business Horizons 39(6) 43ndash52

Does custom equal corruption (1997) Business Asia 29(1) 4Dotlich D and Cario PC (2000) Action Coaching New York Jossey-Bass Dowling P Welch D and Schuler R (1999) International Human Resource Management

Cincinnati OH South-Western College PublishingDrucker P and Nakauchi I (1998) Drucker on Asia New York Butterworth-Heinemann DuBrin AJ and Harper A (1997) Essentials of Management 4th edition Toronto ITP

NelsonErdener CB (1996) lsquoEthnicity Nationality and Gender a Cross-cultural Comparison of Business

Ethical Decisions in Four Countriesrsquo The International Journal of Human Resource Manage-ment 7(4) 866ndash78

Fan Y (1998) lsquoThe Transfer of Western Management to China Context Content andConstraints rsquo Management Learning 29(2) 201ndash22

Finigin K and Walsh E (1998) lsquoCompanies Need Strategy to Develop Leadersrsquo Capital DistrictBusiness Review 24(43) 7ndash13

Fock H and Woo K (1998) lsquoThe China Market Strategic iImplications of Guanxirsquo BusinessStrategy Review 9(3) 33ndash44

Foster M (1997) lsquoSouth China Are the Rewards Worth the Riskrsquo Long Range Planning 20(4)585ndash93

Fuller J and Furrington J (1999) From Training to Performance Improvement Navigating theTransition New York Pfeiffer amp Co

Gaitskell R (2000) lsquoVictims or Victors Managing the Revolutionrsquo Engineering ManagementJournal 10(1) 19ndash29

Goodman D and Segal G (eds) (1998) China Rising Nationalism and Interdependenc e NewYork Routledge

Graham E and Lui L (1998) lsquoOpening Chinarsquos Bond Marketrsquo Journal of World Trade 32(4)5ndash20

Hale J (1999) Performance-based Certi cation San Francisco CA Jossey-Bass Hamilton B (2000) lsquoExecutive Coaching ndash HR Should Play Ballrsquo Canadian HR Reporter 8

May G14ndash5Handy C (1998) The Hungry Spirit New York Broadway BooksHarrald P (1995) lsquoChina Foreign Trade Reform Now for the Hard Partrsquo Oxford Review of

Economic Policy 11(4) 133ndash47Harvey B (1999) lsquo ldquoGraceful Merchantrdquo a Contemporary View of Chinese Business Ethicsrsquo

Journal of Business Ethics 20(1) 85ndash92Hong W and Speece M (1998) lsquoSales Force Development in Chinarsquo Journal of Internationa l

Selling and Sales Management 4(1) 3ndash20Hope J and Hope T (1998) Competing In The Third Wave Boston MA Harvard Business

School PressHui C and Graen G (1997) lsquoGuanxi and Professional Leadership in Contemporary Sino-

American Joint Ventures in Mainland Chinarsquo Leadership Quarterly 8(4) 451ndash66


Hussain A and Zhuang J (1997) lsquoChinese State Enterprises and Reformrsquo Asia Paci c BusinessReview 3(3) 20ndash38

Hwang KK (1987) lsquoFace and Favor The Chinese Power Gamersquo American Journal of Sociology92 944ndash74

Is Europe corrupt (2000) The Economist 29 January 59ndash61Jackson T and Bak M (1998) lsquoForeign Companies and Chinese Workersrsquo Journal of

Organizational Change Management 11(4) 282ndash301Jacobs L Guopei G and Herbig P (1995) lsquoConfucian Roots in China a Force for Todayrsquos

Businessrsquo Management Decision 33(10) 29ndash35Jian Wua J (1997) lsquoThe Present Situation and Developing Trends of Chinese Internal Auditingrsquo

Managerial Auditing Journal 12(45) 235ndash44Kao J (1993) lsquoThe World-Wide Web of Chinese Businessrsquo Harvard Business Review 71(2)

24ndash34Kienzle R and Shadur M (1997) lsquoDevelopments in Business Networks in East Asiarsquo

Management Decision 35(1) 22ndash32Knowles M (1990) The Adult Learner A Neglected Species Houston TX Gulf PublishingKo E (1998) lsquoLessons in leadership rsquo Asian Business 34(2) 53ndash6Kung H (1997) lsquoA Global Ethic in an Age of Globalizationrsquo Business Ethics Quarterly 7(3)

17ndash31Langdon D (2000) Aligning Performance San Francisco CA Jossey-Bass Lawrence S (1997) lsquoSolving the Chinese Accounting Puzzlersquo Management Accounting 75(8)

36ndash9Lee K (1996) lsquoMoral Consideration and Strategic Management Moves the Chinese casersquo

Management Decision 34(9) 65ndash74Leung A and Ng YC (1999) lsquoFrom Confucianism to Egalitarianism Gender Role Attitudes of

Students in the Peoplersquos Republic of Chinarsquo International Review of Woman and Leadership5(1) 57ndash69

Leung T Wong Y and Wong S (1996) lsquoA Study of Hong Kong Businessmanrsquos Perceptions ofthe Role ldquoGuanxirdquo in the Peoplersquos Republic of Chinarsquo Journal of Business Ethics 15(7)749ndash59

Li S (1999) lsquoManagement Development in International Companies in Chinarsquo Education andTraining 41(67) 331ndash6

Li J and Wright P (1999) lsquoThe Issue of Guanxi Discrepancies Reality and Implications rsquo BRCWorking Paper 99036 (September) School of Business Business Research Centre Hong KongBaptist University Kowloon Tong Hong Kong

Linstone H and Zhu Z (2000) lsquoTowards Synergy in Multiperspective Management anAmerican-Chinese Casersquo Human Systems Management 19(1) 25ndash38

Liu S and Vince R (1999) lsquoThe Cultural Context of Learning in International Joint VenturesrsquoJournal of Management Development 18(8) 666ndash76

Louett S Simmous L and Kali R (1999) lsquoGuanxi Versus the Market Ethics and Ef ciencyrsquoMarketing Review 20(2) 231ndash38

Lu X (1997) lsquoBusiness Ethics in Chinarsquo Journal of Business Ethics 16(14) 1509ndash18Luo Y (1997a) lsquoGuanxi Principles Philosophies and Implications rsquo Human Systems Manage-

ment 16(1) 43ndash52Luo Y (1997b) lsquoGuanxi and Performance of Foreign-invested Enterprises in China An

Empirical Inquiryrsquo Management International Review 37(1) 51ndash70Luo Y and Chen M (1997) lsquoDoes Guanxi In uence Firm Performancersquo Asia Paci c Journal of

Management 14(1) 1ndash17MacDonald C (1999) lsquoA Dragon Raises its Head (the Chinese Economy)rsquo Asian Business 35(4)

62ndash6Mak W (1999) lsquoDeveloping Enterprise Managers in Chinarsquo Education and Training 41(67)

319ndash25McCain M and Wagner S (1999) lsquoScaling the Great Wall (international training in China)rsquo

Training and Development 53(7) 38ndash42


McCall M (1992) lsquoExecutive Development as a Business Strategyrsquo Journal of Business Strategy13(1) 25ndash31

McDermatt L (1996) lsquoWanted Chief Executive Coachrsquo Training and Development 50(5)67ndash71

Mehran H and Quintyn M (1996) lsquoFinancial Sector Reforms in Chinarsquo Financial Director37(1) 18ndash22

Meridian Resources Associates (1998a) Strategies for Training The Managing in China Serieshttpwwwmeracom

Meridian Resources Associates (1998b) Recruiting and Retaining Employees A Pamphlet toAccompany the lsquoManaging in China Seriesrsquo see httpwwwmeracom

Mills R and Cao Y (1996) lsquoAccounting and Financial Reporting in Chinarsquo ManagingAccounting 74(1) 26ndash9

Mintoff I and Denton E (1999) A Spiritual Audit of Corporate America New York Jossey-Bass

Morris L (1992) lsquoResearch Capsules a Focus On Developmentrsquo Training and Development46(11) 25ndash8

Newell S (1999) lsquoThe Transfer of Management Knowledge to China Building LearningCommunities Rather Than Translating Western Textbookrsquo Education and Training 41(67)286ndash94

Norman P Gapper J Harverson P Waters R Plender J Flanders S Riley B and GrahamG (1994) lsquoWorld Economy and Financersquo Financial Times 30 September 1ndash28

Olivero G Bone K and Kopelman R (1997) lsquoExecutive Coaching as a Transfer of TrainingTool Effects on Productivity in a Public Agencyrsquo Public Personnel Management 26(4)461ndash69

Patton MQ (1982) Practical Evaluation Beverly Hills CA Sage Publications Pearce J and Robinson R (2000) lsquoCultivating Guanxi as a Foreign Investor Strategyrsquo Business

Horizons 43(1) 31ndash9Pitta D Fung H and Isberg S (1999) lsquoEthical Issues Across Cultures Managing the Differing

Perspectives of China and the USArsquo Journal of Consumer Marketing 16(3) 240ndash57Saks A and Haccoun R (1997) lsquoThe Psychology of Transfer of Trainingrsquo Update MayJune

11ndash2Salters L (1997) lsquoCoaching and Counselling for Peak Performancersquo Business and Economic

Review 44(1) 26ndash8Saywell T (1999) lsquoShades of Grey (China and membership of the World Trade Organization) rsquo

Far Eastern Economic Review 162(20) 50ndash3Scarborough J (1998) lsquoThe Cultural Roots of Chinarsquos Stance on Human Rights a Caution Sign

for Western Companies and Governmentsrsquo Business and the Contemporary World 10(3)511ndash27

Seligman S (1999) lsquoGuanxi Grease for the Wheels of Chinarsquo China Business Review 26(5)34ndash40

Sergeant A and Frenkel S (1998) lsquoManaging People in China Perceptions of ExpatriateManagersrsquo Journal of World Business 33(1) 17ndash35

Shandler D (1996) Reengineering the Training Function Delroy Beach St Lucie PressShi X and Wright PC (1999) The Potential Impacts of National Feelings on Internationa l

Business Negotiations A Study in the China Context BRC Papers on Cross-CulturalManagement (CCMP 99014) School of Management Hong Kong Baptist University

Shi X and Westwood RI (2000) lsquoInternational Business Negotiation in the Chinese ContextrsquoIn Li JT Tsui AS and Weldon E (eds) Managing and Organizations in China New YorkMacmillan

Shula D and Blanchord K (1995) Everyone is a Coach You Can Inspire Anyone to be a WinnerNew York Harper Business

Snell R (1999) lsquoObedience to Authority and Ethical Dilemmas in Hong Kong CompaniesrsquoBusiness Ethics Quarterly 9(3) 507ndash26

Southworth D (1999) lsquoBuilding a Business School in Chinarsquo Education and Training 41(67)325ndash31


Standi rd S and Marshall R (2000) lsquoThe Transaction Cost Advantage of Guanxi-basedBusiness Practicesrsquo Journal of World Business 35(1) 21ndash43

Steidlmeier P (1997) lsquoBusiness Ethics and Politics in Chinarsquo Business Ethics Quarterly 7(3)131ndash43

Steidlmeier P (1999) lsquoGift Giving Bribery and Corruption Ethical Management of BusinessRelationships in Chinarsquo Journal of Business Ethics 20(2) 121ndash32

Stewart R (1984) Demands Choices and Constraints Outlines for Developing Managers Froman Address to the World Congress on Management in London June

Stewart T (1997) Intellectual Capital The New Wealth of Motions New York CurrencyDoubleday

Swecker PR (1998) Validation of Organizational Practice Statements in the Indonesian WorkEnvironment Unpublished DBA thesis Murdoch University Perth Western Australia

Swepson R (1999) Personal communications Mr Swepson is Client Services Director RetailServices for AC Nielson based in Shanghai Interviewed on 9 September

Tabak F Soloman J and Nielson C (1998) lsquoManagerial Success a Pro le of Future Managersin Chinarsquo SAM Advanced Management Journal 63(4) 18ndash25

Tait A and Li K (1997) lsquoTrade Regimes and Chinarsquos Accession to the World TradeOrganization rsquo Journal of World Trade 31(3) 93ndash102

Takahashi A (1997) lsquoEthics in Developing Economies of Asiarsquo Business Ethics Quarterly 7(3)33ndash45

Ticky N (1998) The Leadership Engine New York Harper-Business Tietjen M and Myers R (1998) lsquoMotivation and Job Satisfactionrsquo Management Decisions

36(4) 226ndash31Tjosuold D and Moy J (1998) lsquoManaging Employees in China from Hong Kongrsquo Leadership

and Organizational Development Journal 19(3) 147ndash57Tsang E (1998) lsquoCan ldquoGuanxirdquo be a Source of Sustained Competitive Advantage for Doing

Business in Chinarsquo The Academy of Management Executive 12(2) 64ndash73Tsang E (1999) lsquoThe Knowledge Transfer and Learning Aspects of International HRMrsquo

International Business Review 8(56) 591ndash610Tsui A and Farh J (1997) lsquoWhere Guanxi Matters Relational Demography and Guanxi in the

Chinese Contextrsquo Work and Occupations 24(1) 56ndash80Tung RL (1991) lsquoMotivation in Chinese Industrial Enterprisesrsquo In Steers RM and Porter LW

(eds) Innovation and Work Behavior 5th edition New York McGraw-HillUlrich D and Black JS (1999) lsquoGlobalization rsquo People Management 28 October 42ndash46van der Geest W (1998) lsquoBringing China into the Concert of Nations an Analysis of its

Accession to the WTOrsquo Journal of World Trade 32(2) 99ndash116Warner M (1997) lsquoChinarsquos HRM in Transition Towards Relative Convergencersquo Asia Paci c

Review 3(4) 19ndash34Warner M (1999) lsquoHuman Resources and Management in Chinarsquos ldquoHi-techrdquo Revolution a Study

of Selected Computer Hardware Software and Related Firm in the PRCrsquo The Internationa lJournal of Human Resource Management 10(1) 1ndash20

Wei Z (1998) lsquoChinarsquos WTO Accession-commitments and Prospectsrsquo Journal of World Trade32(2) 51ndash76

Wei-guo Z (1996) lsquoChinarsquos Challenge Building an Accounting Systemrsquo Australian Accountant66(7) 26ndash8

Weiss RS (1994) Learning from Strangers The Art and Method of Quantitative InterviewingNew York The Free Press

Whetton DA and Cameron KS (1995) Developing Management Skills 3rd edition New YorkHarper Collins

Whitcomb L Erdener C and Li C (1998) lsquoBusiness Ethical Values in China and the USrsquoJournal of Business Ethics 17(8) 839ndash53

Whittaker B (1993) lsquoShaping the Competitive Organization-managing or Coachingrsquo CMAMagazine 67(3) 5

Whittenberg-Cox A (1999) lsquoDelivering Global Leadersrsquo International Management 46(1)52ndash5


Wilpert B and Scharpf SY (1990) lsquoIntercultural Management ndash Joint Ventures in the PeoplersquosRepublic of Chinarsquo International Journal of Psychology 25 643ndash56

Wong YH (1997) lsquoInsider Selling to China Guanxi Trust And Adaptationrsquo Journal ofInternational Selling and Sales Management Autumn(32) 55ndash73

Wong Y (1998) lsquoKey to Key Account Management Relationship (Guanxi)rsquo InternationalMarketing Review 15(3) 215ndash32

Wong YH (1998) lsquoThe Dynamics of Guanxi in Chinarsquo Singapore Management Review 20(2)25ndash43

Wong Z (1999) lsquoCurrent Models and Innovative Strategies in Management Education in ChinarsquoEducation and Training 41(67) 312ndash19

Wong Y (2000) lsquoChinarsquos Domestic WTO debatersquo China Business Review 27(1) 54ndash64Wong YH and Chan RY (1999) lsquoRelationship Marketing in China Guanxi Favouritism and

Adaptationrsquo Journal of Business Ethics 22(2) 107ndash18Wong CS and Lau K (1999) lsquoManaging Localization of Human Resources in the PRC a

Practical Modelrsquo Journal of World Business 34(1) 26ndash41Wong Y and Tam J (2000) lsquoMapping Relationships in China Guanxi Dynamic Approachrsquo

Journal of Business and Industrial Marketing 15(1) 57ndash71Worm V and Frankenstein J (2000) lsquoThe Dilemma of Managerial Co-operation in Sino-Western

Business Operationsrsquo Thunderbird International Business Review 42(3) 261ndash84Wright PC (1984) lsquoTraining Budgets Are They Obsoletersquo Journal of European Industrial

Training 8(7) 14ndash22Wright PC and Geroy GD (1999) Changing the Mindset BRC Working Paper WP99013

School of Business Hong Kong Baptist University Kowloon Tong Hong KongWright PC and Hoa TTV (2000) lsquoThe Role of Personal Relationships in the Lending

Decisions of Vietnamese Bankersrsquo International Journal of Management in pressWright PC and Szeto FW (2000) lsquoThe WTO and the Chinese-Managed Firm Participant or

Bystanderrsquo Shue Yan College International Conference on WTO and China In Proceedingsof the International Conference on WTO and China

Wright PC and Geroy GD (in press) lsquoChanging the mindset The Training Myth and the needfor World-Class Performancersquo The International Journal of Human Resource Management

Wright PM Mitsubash H and Chua R (1998) lsquoHRM in Multinational rsquos Operations in ChinaBuilding Human Capital and Organizational Capabilityrsquo Asia Paci c Journal of HumanResources 36(2) 3ndash15

Wu X (1999) lsquoBusiness Ethical Perceptions of Business People in East China an EmpiricalStudyrsquo Business Ethics Quarterly 9(3) 541ndash59

Xin K and Pearce J (1996) lsquoGuanxi Connections as Substitutes for Formal InstitutionalSupportrsquo Academy of Management Journal 36(6) 1641ndash59

Xu K (1996) lsquoGuanxi the First Step in Any China Venturersquo Business Review Weekly 18(21)62ndash3

Yeung I and Tung R (1996) lsquoAchieving Business Success in Confucian Societies theImportance of ldquoGuanxirdquo (connections) rsquo Organizational Dynamics 25(2) 54ndash66

Yi L and Ellis P (2000) lsquoInsider-Outsider Perspectives of Guanxirsquo Business Horizons 43(1)25ndash31

Zhu CJ (1997) lsquoHuman Resource Development in China During the Transition to a NewEconomic Systemrsquo Asia Paci c Journal of Human Resources 35(3) 19ndash45


Inevitably this transition encompasses not only trade but more philosophical issuesas well Chinarsquos trading partners have expressed continual interest in human rights therule of law copyright piracy and intellectual property (Deng et al 1996 van der Geest1998 Wei 1998) These dimensions not always welcomed by the Chinese (Wong2000) have become an integral part of the ongoing debate about Chinarsquos eventual (butcertain) entry into the World Trade Organization (Tait and Li 1997)

Accordingly ethical issues are likely to proliferate among them the concept ofprofessional conduct Although the Chinese government has invested extensively ineducation (MacDonald 1999) the needs are so vast that much more needs to be done(Zhu 1997) as management conduct is likely to become an evermore importantvariable in investment decision making As well it has been suggested that the morecompetitive the company the more likely it will bene t in the longer term from WTOmembership (Saywell 1999) in that business success now has been linked explicitly tobusiness ethics by many Western managers (Browne 2000 Butcher and Harvey 1999)Inevitably personnel professionals will be asked for input into the development ofethical standards (Ulrich and Black 1999) and into the creation of managementdevelopment programmes that lead to behavioural change rather than the surfacecompliance likely to result from traditional courses and seminars

It has been argued that the challenge of developing more uniform professionalconduct stems from the transition to a lsquosocialist market economyrsquo as inadequacies inboth laws and enforcement have weakened professional morality and social responsibil-ity while a cult of money-worship has arisen (Harvey 1999) While this phenomenonappears to exist the root cause may lie in a much more fundamental direction as guanxior relationship-based business practices can lead to a set of ethical priorities that differsfrom the Western norm (Steidlmeier 1997) Issues such as nepotism and corruption(Yeung and Tung 1996 Xin and Pearce 1996 Pearce and Robinson 2000) forexample have been linked closely to guanxi as has the passing on of proprietaryinformation (Barnathan et al 1996) Combined with differing concepts of honesty(Worm and Frankenstein 2000) it becomes apparent that the separation betweenChinese private and business life is slight (Pitta et al 1999) This concept makes iteasier to understand the underpinning philosophy of Chinese entrepreneurship iepatriarchal authority and a survivor mentality (Kao 1993) leading to extreme entre-preneurism and risk taking (Cragg 1995) Although the Chinese value system changesover time Whitcomb Erdenei and Li (1998) have suggested that Chinese businesspractitioners are more likely than their Western counterparts to engage in lsquoinformalrsquo(what may be regarded in the West as illegal) business activities

Thus we paint a scenario of business de ned by a complex dynamic web of multiplerelationships among the self others and the world (Linstone and Zhu 2000) Wong(1998) has described these lsquoguanxi constructsrsquo in terms of a positioning map depictingfour (insideroutsider) psychological relationships ndash fencer anceacute new friend oldfriend Similarly Tsui and Farh (1997) drew up an lsquointegrated frameworkrsquo in whichguanxi was comprised of role obligation friendship and social de nition Theseconcepts are complicated further by the Confucian roots of Chinese society whichemphasize hierarchy and the need to maintain harmony (Cragg 1995 Jacobs et al1995) leading to work environments that discourage both participation and systemsthinking (Bell 1998)

As the Chinese economy becomes more and more integrated into the global matrixhowever this management style will tend to create both ethical and operationalproblems (Wright and Szeto 2000) Indeed many Chinese professionals are highlycritical of both the personal ethical standards of superiors and co-workers as well as the












Guanxi and business







Guanxi and ethics















Training in China
































































Stronglydisagree

Total(n)

Statementtype


23(27)

177(205)

501(580)

163(189)

864(100)

Guanxi


218(252)

594(688)

45(52)

7(08)

864(100)

Guanxi


52(60)

369(428)

395(458)

47(54)

863(100)

Guanxi


183(212)

443(512)

209(242)

30(35)

865(100)

Guanxi


270(313)

338(391)

209(242)

47(54)

864(100)

Guanxi


49(57)

255(295)

473(547)

88(102)

865(100)

Guanxi


90(104)

505(584)

242(280)

27(31)

864(100)

Guanxi


103(119)

477(553)

264(306)

19(22)

863(100)

Guanxi


30(35)

310(361)

398(463)

121(141)

859(100)

Ethics


95(110)

417(483)

282(326)

70(81)

864(100)

Ethics


571(661)

83(96)

20(23)

864(100)

Ethics


38(44)

239(277)

455(527)

131(152)

863(100)

Ethics


24(28)

110(128)

504(584)

224(260)

862(100)

Ethics


59(68)

500(579)

292(338)

863(100)

Ethics


32(37)

204(236)

521(604)

106(123)

863(100)

Ethics
















Gendera

Positiona

Companytypea

Educationlevela

WorkoutsideChinaa


2 0046 0046 009 0114 2 007


requests2 0061 0062 0031 0046 0067


2 001 0091 01 0032 2 0073


friendship2 0082 0095 0037 0066 2 0069


2 0006 0046 0078 0031 0000





not compatible0032 0052 0066 0054 0013



Tabl

e 4

Mea

n di

ffere

nces

for

gen

der

posi

tion

com

pany

typ

e e

duca

tion

leve

l an

d fo

reig

n ex

peri

ence

Para

phra

sed

stat

emen

ts(s

ee F

igur

e 1)

Gen

der

mal

evs fe

mal

e

Man

ager

svs se

nior

staf

f

Pri

vate

ly-

owne

dvs st

ate-

owne

d

Pri

vate

ly-

owne

dvs jo

int

vent

ure

Stat

e-ow

ned

vs join

tve

ntur

e

Seco

ndar

yvs so

me

post

seco

ndar

y

Seco

ndar

yvs un

iver

sity

Som

e po

stse

cond

ary

vs

univ

ersi

ty

Wor

kou

tisd

eC

hina

vs no f

orei

gnex

peri

ence

1W

ould

hav

e lit

tle

trou

ble

borr

owin

g0

131

000

90

670

087

00

020

035

2

035

6

000

40

003

2D

o fa

vour

s w

hene

ver

aske

d2

000

90

023

002

72

003

52

006

30

059

20

050

20

109

20

046

3H

ard

to r

ejec

t co

llea

gues

rsquo re

ques

ts0

072

20

064

001

50

058

004

32

007

80

006

008

42

011

04

Mos

t bu

sine

sses

dep

end

on r

elat

ions

hip

20

018

008

22

002

40

105

012

92

001

62

006

82

005

20

112

5L

ess

inte

rfer

ence

in

busi

ness

018

02

011

42

006

92

006

10

009

021

42

001

52

022

80

153

6Pr

ot

mor

e im

port

ant

than

fri

ends

hip

015

82

010

90

046

009

60

050

20

236

20

165

007

10

090

7H

elp

each

oth

er a

gain

st t

he w

orld

20

054

006

10

064

004

22

002

22

019

72

017

00

027

000

48

Hel

p m

embe

rs o

f in

ner

circ

le0

071

006

80

182

0

132

20

051

000

70

176

016

9

20

075

9H

elp

colle

ague

on

tax

evas

ion

004

92

014

50

143

028

2

013

90

070

014

70

078

20

080

10Fi

nd l

oop

hole

s in

reg

ulat

ions

005

82

008

30

144

010

12

004

32

009

82

007

80

020

20

033

11W

ould

ben

d re

gula

tions

002

92

009

70

184

0

012

20

172

2

001

12

002

02

000

92

003

612

Man

y

rms

earn

pro

t i

lleg

ally

20

004

20

023

021

3

005

72

015

62

006

42

008

32

001

90

148

13B

usin

ess

grou

ps d

o il

lega

l ac

tivit

ies

for

bene

t2

005

42

002

60

135

003

62

010

02

015

12

012

70

024

006

3

14Pr

ot

abov

e th

e la

w2

076

007

80

170

0

163

2

000

72

022

62

021

10

015

001

915

Bus

ines

s pr

acti

ce a

nd e

thic

s ar

e no

tco

mpa

tibl

e2

054

20

068

004

00

046

20

037

20

166

20

129

003

72

005

8

Not

es

sign

ica

nce

leve

l

005

sign

ica

nce

leve

l

001




































References










































































































































































Guanxi and business







Guanxi and ethics















Training in China
































































Stronglydisagree

Total(n)

Statementtype


23(27)

177(205)

501(580)

163(189)

864(100)

Guanxi


218(252)

594(688)

45(52)

7(08)

864(100)

Guanxi


52(60)

369(428)

395(458)

47(54)

863(100)

Guanxi


183(212)

443(512)

209(242)

30(35)

865(100)

Guanxi


270(313)

338(391)

209(242)

47(54)

864(100)

Guanxi


49(57)

255(295)

473(547)

88(102)

865(100)

Guanxi


90(104)

505(584)

242(280)

27(31)

864(100)

Guanxi


103(119)

477(553)

264(306)

19(22)

863(100)

Guanxi


30(35)

310(361)

398(463)

121(141)

859(100)

Ethics


95(110)

417(483)

282(326)

70(81)

864(100)

Ethics


571(661)

83(96)

20(23)

864(100)

Ethics


38(44)

239(277)

455(527)

131(152)

863(100)

Ethics


24(28)

110(128)

504(584)

224(260)

862(100)

Ethics


59(68)

500(579)

292(338)

863(100)

Ethics


32(37)

204(236)

521(604)

106(123)

863(100)

Ethics
















Gendera

Positiona

Companytypea

Educationlevela

WorkoutsideChinaa


2 0046 0046 009 0114 2 007


requests2 0061 0062 0031 0046 0067


2 001 0091 01 0032 2 0073


friendship2 0082 0095 0037 0066 2 0069


2 0006 0046 0078 0031 0000





not compatible0032 0052 0066 0054 0013



Tabl

e 4

Mea

n di

ffere

nces

for

gen

der

posi

tion

com

pany

typ

e e

duca

tion

leve

l an

d fo

reig

n ex

peri

ence

Para

phra

sed

stat

emen

ts(s

ee F

igur

e 1)

Gen

der

mal

evs fe

mal

e

Man

ager

svs se

nior

staf

f

Pri

vate

ly-

owne

dvs st

ate-

owne

d

Pri

vate

ly-

owne

dvs jo

int

vent

ure

Stat

e-ow

ned

vs join

tve

ntur

e

Seco

ndar

yvs so

me

post

seco

ndar

y

Seco

ndar

yvs un

iver

sity

Som

e po

stse

cond

ary

vs

univ

ersi

ty

Wor

kou

tisd

eC

hina

vs no f

orei

gnex

peri

ence

1W

ould

hav

e lit

tle

trou

ble

borr

owin

g0

131

000

90

670

087

00

020

035

2

035

6

000

40

003

2D

o fa

vour

s w

hene

ver

aske

d2

000

90

023

002

72

003

52

006

30

059

20

050

20

109

20

046

3H

ard

to r

ejec

t co

llea

gues

rsquo re

ques

ts0

072

20

064

001

50

058

004

32

007

80

006

008

42

011

04

Mos

t bu

sine

sses

dep

end

on r

elat

ions

hip

20

018

008

22

002

40

105

012

92

001

62

006

82

005

20

112

5L

ess

inte

rfer

ence

in

busi

ness

018

02

011

42

006

92

006

10

009

021

42

001

52

022

80

153

6Pr

ot

mor

e im

port

ant

than

fri

ends

hip

015

82

010

90

046

009

60

050

20

236

20

165

007

10

090

7H

elp

each

oth

er a

gain

st t

he w

orld

20

054

006

10

064

004

22

002

22

019

72

017

00

027

000

48

Hel

p m

embe

rs o

f in

ner

circ

le0

071

006

80

182

0

132

20

051

000

70

176

016

9

20

075

9H

elp

colle

ague

on

tax

evas

ion

004

92

014

50

143

028

2

013

90

070

014

70

078

20

080

10Fi

nd l

oop

hole

s in

reg

ulat

ions

005

82

008

30

144

010

12

004

32

009

82

007

80

020

20

033

11W

ould

ben

d re

gula

tions

002

92

009

70

184

0

012

20

172

2

001

12

002

02

000

92

003

612

Man

y

rms

earn

pro

t i

lleg

ally

20

004

20

023

021

3

005

72

015

62

006

42

008

32

001

90

148

13B

usin

ess

grou

ps d

o il

lega

l ac

tivit

ies

for

bene

t2

005

42

002

60

135

003

62

010

02

015

12

012

70

024

006

3

14Pr

ot

abov

e th

e la

w2

076

007

80

170

0

163

2

000

72

022

62

021

10

015

001

915

Bus

ines

s pr

acti

ce a

nd e

thic

s ar

e no

tco

mpa

tibl

e2

054

20

068

004

00

046

20

037

20

166

20

129

003

72

005

8

Not

es

sign

ica

nce

leve

l

005

sign

ica

nce

leve

l

001




































References












































































































































































Training in China
































































Stronglydisagree

Total(n)

Statementtype


23(27)

177(205)

501(580)

163(189)

864(100)

Guanxi


218(252)

594(688)

45(52)

7(08)

864(100)

Guanxi


52(60)

369(428)

395(458)

47(54)

863(100)

Guanxi


183(212)

443(512)

209(242)

30(35)

865(100)

Guanxi


270(313)

338(391)

209(242)

47(54)

864(100)

Guanxi


49(57)

255(295)

473(547)

88(102)

865(100)

Guanxi


90(104)

505(584)

242(280)

27(31)

864(100)

Guanxi


103(119)

477(553)

264(306)

19(22)

863(100)

Guanxi


30(35)

310(361)

398(463)

121(141)

859(100)

Ethics


95(110)

417(483)

282(326)

70(81)

864(100)

Ethics


571(661)

83(96)

20(23)

864(100)

Ethics


38(44)

239(277)

455(527)

131(152)

863(100)

Ethics


24(28)

110(128)

504(584)

224(260)

862(100)

Ethics


59(68)

500(579)

292(338)

863(100)

Ethics


32(37)

204(236)

521(604)

106(123)

863(100)

Ethics
















Gendera

Positiona

Companytypea

Educationlevela

WorkoutsideChinaa


2 0046 0046 009 0114 2 007


requests2 0061 0062 0031 0046 0067


2 001 0091 01 0032 2 0073


friendship2 0082 0095 0037 0066 2 0069


2 0006 0046 0078 0031 0000





not compatible0032 0052 0066 0054 0013



Tabl

e 4

Mea

n di

ffere

nces

for

gen

der

posi

tion

com

pany

typ

e e

duca

tion

leve

l an

d fo

reig

n ex

peri

ence

Para

phra

sed

stat

emen

ts(s

ee F

igur

e 1)

Gen

der

mal

evs fe

mal

e

Man

ager

svs se

nior

staf

f

Pri

vate

ly-

owne

dvs st

ate-

owne

d

Pri

vate

ly-

owne

dvs jo

int

vent

ure

Stat

e-ow

ned

vs join

tve

ntur

e

Seco

ndar

yvs so

me

post

seco

ndar

y

Seco

ndar

yvs un

iver

sity

Som

e po

stse

cond

ary

vs

univ

ersi

ty

Wor

kou

tisd

eC

hina

vs no f

orei

gnex

peri

ence

1W

ould

hav

e lit

tle

trou

ble

borr

owin

g0

131

000

90

670

087

00

020

035

2

035

6

000

40

003

2D

o fa

vour

s w

hene

ver

aske

d2

000

90

023

002

72

003

52

006

30

059

20

050

20

109

20

046

3H

ard

to r

ejec

t co

llea

gues

rsquo re

ques

ts0

072

20

064

001

50

058

004

32

007

80

006

008

42

011

04

Mos

t bu

sine

sses

dep

end

on r

elat

ions

hip

20

018

008

22

002

40

105

012

92

001

62

006

82

005

20

112

5L

ess

inte

rfer

ence

in

busi

ness

018

02

011

42

006

92

006

10

009

021

42

001

52

022

80

153

6Pr

ot

mor

e im

port

ant

than

fri

ends

hip

015

82

010

90

046

009

60

050

20

236

20

165

007

10

090

7H

elp

each

oth

er a

gain

st t

he w

orld

20

054

006

10

064

004

22

002

22

019

72

017

00

027

000

48

Hel

p m

embe

rs o

f in

ner

circ

le0

071

006

80

182

0

132

20

051

000

70

176

016

9

20

075

9H

elp

colle

ague

on

tax

evas

ion

004

92

014

50

143

028

2

013

90

070

014

70

078

20

080

10Fi

nd l

oop

hole

s in

reg

ulat

ions

005

82

008

30

144

010

12

004

32

009

82

007

80

020

20

033

11W

ould

ben

d re

gula

tions

002

92

009

70

184

0

012

20

172

2

001

12

002

02

000

92

003

612

Man

y

rms

earn

pro

t i

lleg

ally

20

004

20

023

021

3

005

72

015

62

006

42

008

32

001

90

148

13B

usin

ess

grou

ps d

o il

lega

l ac

tivit

ies

for

bene

t2

005

42

002

60

135

003

62

010

02

015

12

012

70

024

006

3

14Pr

ot

abov

e th

e la

w2

076

007

80

170

0

163

2

000

72

022

62

021

10

015

001

915

Bus

ines

s pr

acti

ce a

nd e

thic

s ar

e no

tco

mpa

tibl

e2

054

20

068

004

00

046

20

037

20

166

20

129

003

72

005

8

Not

es

sign

ica

nce

leve

l

005

sign

ica

nce

leve

l

001




































References



























































































































































































































Stronglydisagree

Total(n)

Statementtype


23(27)

177(205)

501(580)

163(189)

864(100)

Guanxi


218(252)

594(688)

45(52)

7(08)

864(100)

Guanxi


52(60)

369(428)

395(458)

47(54)

863(100)

Guanxi


183(212)

443(512)

209(242)

30(35)

865(100)

Guanxi


270(313)

338(391)

209(242)

47(54)

864(100)

Guanxi


49(57)

255(295)

473(547)

88(102)

865(100)

Guanxi


90(104)

505(584)

242(280)

27(31)

864(100)

Guanxi


103(119)

477(553)

264(306)

19(22)

863(100)

Guanxi


30(35)

310(361)

398(463)

121(141)

859(100)

Ethics


95(110)

417(483)

282(326)

70(81)

864(100)

Ethics


571(661)

83(96)

20(23)

864(100)

Ethics


38(44)

239(277)

455(527)

131(152)

863(100)

Ethics


24(28)

110(128)

504(584)

224(260)

862(100)

Ethics


59(68)

500(579)

292(338)

863(100)

Ethics


32(37)

204(236)

521(604)

106(123)

863(100)

Ethics
















Gendera

Positiona

Companytypea

Educationlevela

WorkoutsideChinaa


2 0046 0046 009 0114 2 007


requests2 0061 0062 0031 0046 0067


2 001 0091 01 0032 2 0073


friendship2 0082 0095 0037 0066 2 0069


2 0006 0046 0078 0031 0000





not compatible0032 0052 0066 0054 0013



Tabl

e 4

Mea

n di

ffere

nces

for

gen

der

posi

tion

com

pany

typ

e e

duca

tion

leve

l an

d fo

reig

n ex

peri

ence

Para

phra

sed

stat

emen

ts(s

ee F

igur

e 1)

Gen

der

mal

evs fe

mal

e

Man

ager

svs se

nior

staf

f

Pri

vate

ly-

owne

dvs st

ate-

owne

d

Pri

vate

ly-

owne

dvs jo

int

vent

ure

Stat

e-ow

ned

vs join

tve

ntur

e

Seco

ndar

yvs so

me

post

seco

ndar

y

Seco

ndar

yvs un

iver

sity

Som

e po

stse

cond

ary

vs

univ

ersi

ty

Wor

kou

tisd

eC

hina

vs no f

orei

gnex

peri

ence

1W

ould

hav

e lit

tle

trou

ble

borr

owin

g0

131

000

90

670

087

00

020

035

2

035

6

000

40

003

2D

o fa

vour

s w

hene

ver

aske

d2

000

90

023

002

72

003

52

006

30

059

20

050

20

109

20

046

3H

ard

to r

ejec

t co

llea

gues

rsquo re

ques

ts0

072

20

064

001

50

058

004

32

007

80

006

008

42

011

04

Mos

t bu

sine

sses

dep

end

on r

elat

ions

hip

20

018

008

22

002

40

105

012

92

001

62

006

82

005

20

112

5L

ess

inte

rfer

ence

in

busi

ness

018

02

011

42

006

92

006

10

009

021

42

001

52

022

80

153

6Pr

ot

mor

e im

port

ant

than

fri

ends

hip

015

82

010

90

046

009

60

050

20

236

20

165

007

10

090

7H

elp

each

oth

er a

gain

st t

he w

orld

20

054

006

10

064

004

22

002

22

019

72

017

00

027

000

48

Hel

p m

embe

rs o

f in

ner

circ

le0

071

006

80

182

0

132

20

051

000

70

176

016

9

20

075

9H

elp

colle

ague

on

tax

evas

ion

004

92

014

50

143

028

2

013

90

070

014

70

078

20

080

10Fi

nd l

oop

hole

s in

reg

ulat

ions

005

82

008

30

144

010

12

004

32

009

82

007

80

020

20

033

11W

ould

ben

d re

gula

tions

002

92

009

70

184

0

012

20

172

2

001

12

002

02

000

92

003

612

Man

y

rms

earn

pro

t i

lleg

ally

20

004

20

023

021

3

005

72

015

62

006

42

008

32

001

90

148

13B

usin

ess

grou

ps d

o il

lega

l ac

tivit

ies

for

bene

t2

005

42

002

60

135

003

62

010

02

015

12

012

70

024

006

3

14Pr

ot

abov

e th

e la

w2

076

007

80

170

0

163

2

000

72

022

62

021

10

015

001

915

Bus

ines

s pr

acti

ce a

nd e

thic

s ar

e no

tco

mpa

tibl

e2

054

20

068

004

00

046

20

037

20

166

20

129

003

72

005

8

Not

es

sign

ica

nce

leve

l

005

sign

ica

nce

leve

l

001




































References














































































































































































Gendera

Positiona

Companytypea

Educationlevela

WorkoutsideChinaa


2 0046 0046 009 0114 2 007


requests2 0061 0062 0031 0046 0067


2 001 0091 01 0032 2 0073


friendship2 0082 0095 0037 0066 2 0069


2 0006 0046 0078 0031 0000





not compatible0032 0052 0066 0054 0013



Tabl

e 4

Mea

n di

ffere

nces

for

gen

der

posi

tion

com

pany

typ

e e

duca

tion

leve

l an

d fo

reig

n ex

peri

ence

Para

phra

sed

stat

emen

ts(s

ee F

igur

e 1)

Gen

der

mal

evs fe

mal

e

Man

ager

svs se

nior

staf

f

Pri

vate

ly-

owne

dvs st

ate-

owne

d

Pri

vate

ly-

owne

dvs jo

int

vent

ure

Stat

e-ow

ned

vs join

tve

ntur

e

Seco

ndar

yvs so

me

post

seco

ndar

y

Seco

ndar

yvs un

iver

sity

Som

e po

stse

cond

ary

vs

univ

ersi

ty

Wor

kou

tisd

eC

hina

vs no f

orei

gnex

peri

ence

1W

ould

hav

e lit

tle

trou

ble

borr

owin

g0

131

000

90

670

087

00

020

035

2

035

6

000

40

003

2D

o fa

vour

s w

hene

ver

aske

d2

000

90

023

002

72

003

52

006

30

059

20

050

20

109

20

046

3H

ard

to r

ejec

t co

llea

gues

rsquo re

ques

ts0

072

20

064

001

50

058

004

32

007

80

006

008

42

011

04

Mos

t bu

sine

sses

dep

end

on r

elat

ions

hip

20

018

008

22

002

40

105

012

92

001

62

006

82

005

20

112

5L

ess

inte

rfer

ence

in

busi

ness

018

02

011

42

006

92

006

10

009

021

42

001

52

022

80

153

6Pr

ot

mor

e im

port

ant

than

fri

ends

hip

015

82

010

90

046

009

60

050

20

236

20

165

007

10

090

7H

elp

each

oth

er a

gain

st t

he w

orld

20

054

006

10

064

004

22

002

22

019

72

017

00

027

000

48

Hel

p m

embe

rs o

f in

ner

circ

le0

071

006

80

182

0

132

20

051

000

70

176

016

9

20

075

9H

elp

colle

ague

on

tax

evas

ion

004

92

014

50

143

028

2

013

90

070

014

70

078

20

080

10Fi

nd l

oop

hole

s in

reg

ulat

ions

005

82

008

30

144

010

12

004

32

009

82

007

80

020

20

033

11W

ould

ben

d re

gula

tions

002

92

009

70

184

0

012

20

172

2

001

12

002

02

000

92

003

612

Man

y

rms

earn

pro

t i

lleg

ally

20

004

20

023

021

3

005

72

015

62

006

42

008

32

001

90

148

13B

usin

ess

grou

ps d

o il

lega

l ac

tivit

ies

for

bene

t2

005

42

002

60

135

003

62

010

02

015

12

012

70

024

006

3

14Pr

ot

abov

e th

e la

w2

076

007

80

170

0

163

2

000

72

022

62

021

10

015

001

915

Bus

ines

s pr

acti

ce a

nd e

thic

s ar

e no

tco

mpa

tibl

e2

054

20

068

004

00

046

20

037

20

166

20

129

003

72

005

8

Not

es

sign

ica

nce

leve

l

005

sign

ica

nce

leve

l

001




































References
































































































































































Tabl

e 4

Mea

n di

ffere

nces

for

gen

der

posi

tion

com

pany

typ

e e

duca

tion

leve

l an

d fo

reig

n ex

peri

ence

Para

phra

sed

stat

emen

ts(s

ee F

igur

e 1)

Gen

der

mal

evs fe

mal

e

Man

ager

svs se

nior

staf

f

Pri

vate

ly-

owne

dvs st

ate-

owne

d

Pri

vate

ly-

owne

dvs jo

int

vent

ure

Stat

e-ow

ned

vs join

tve

ntur

e

Seco

ndar

yvs so

me

post

seco

ndar

y

Seco

ndar

yvs un

iver

sity

Som

e po

stse

cond

ary

vs

univ

ersi

ty

Wor

kou

tisd

eC

hina

vs no f

orei

gnex

peri

ence

1W

ould

hav

e lit

tle

trou

ble

borr

owin

g0

131

000

90

670

087

00

020

035

2

035

6

000

40

003

2D

o fa

vour

s w

hene

ver

aske

d2

000

90

023

002

72

003

52

006

30

059

20

050

20

109

20

046

3H

ard

to r

ejec

t co

llea

gues

rsquo re

ques

ts0

072

20

064

001

50

058

004

32

007

80

006

008

42

011

04

Mos

t bu

sine

sses

dep

end

on r

elat

ions

hip

20

018

008

22

002

40

105

012

92

001

62

006

82

005

20

112

5L

ess

inte

rfer

ence

in

busi

ness

018

02

011

42

006

92

006

10

009

021

42

001

52

022

80

153

6Pr

ot

mor

e im

port

ant

than

fri

ends

hip

015

82

010

90

046

009

60

050

20

236

20

165

007

10

090

7H

elp

each

oth

er a

gain

st t

he w

orld

20

054

006

10

064

004

22

002

22

019

72

017

00

027

000

48

Hel

p m

embe

rs o

f in

ner

circ

le0

071

006

80

182

0

132

20

051

000

70

176

016

9

20

075

9H

elp

colle

ague

on

tax

evas

ion

004

92

014

50

143

028

2

013

90

070

014

70

078

20

080

10Fi

nd l

oop

hole

s in

reg

ulat

ions

005

82

008

30

144

010

12

004

32

009

82

007

80

020

20

033

11W

ould

ben

d re

gula

tions

002

92

009

70

184

0

012

20

172

2

001

12

002

02

000

92

003

612

Man

y

rms

earn

pro

t i

lleg

ally

20

004

20

023

021

3

005

72

015

62

006

42

008

32

001

90

148

13B

usin

ess

grou

ps d

o il

lega

l ac

tivit

ies

for

bene

t2

005

42

002

60

135

003

62

010

02

015

12

012

70

024

006

3

14Pr

ot

abov

e th

e la

w2

076

007

80

170

0

163

2

000

72

022

62

021

10

015

001

915

Bus

ines

s pr

acti

ce a

nd e

thic

s ar

e no

tco

mpa

tibl

e2

054

20

068

004

00

046

20

037

20

166

20

129

003

72

005

8

Not

es

sign

ica

nce

leve

l

005

sign

ica

nce

leve

l

001




































References


































































































































































































References
































































































































































philip wright, w.f. szeto and louis t.w....

Documents