Demystifying Chinese guanxi networks: Cultivating and sharing of knowledge for business benefit

Guanxi referrals help identify potential business partners. Through guanxi networks, businesses can establish favourable and mutually beneficial relationships vital to business success. Guanxi carries assumed knowledge of trust and facilitates business references. It is the construct of `face' that underpins this trust. The high degree of trust in guanxi networks facilitates the flow of strategic information and knowledge, further adding value to business. This article illustrates through case studies how guanxi relationships are formed and how knowledge in guanxi networks can benefit business. The case studies are drawn from experiences of three Europe-based Chinese business directors.