Neither collectivism nor individualism: Trust in the Chinese guanxi circle

Jar-Der Luo and Yung-Chu Yeh

Journal of Trust Research, 2012, vol. 2, issue 1, 53-70

Abstract: This paper illustrates the phenomenon of the social circle in Chinese culture, including the type and role of trust in such a circle, which we call a guanxi circle. In general, a guanxi circle is an ego-centric network. The Chinese national culture is generally thought of as a culture of collectivism, which in turn makes the Chinese network structure dense and closed in organisational settings. However, we find that there are also aspects of openness and flexibility in both Chinese business and social networks, as guanxi circles. In addition, the guanxi circle has a unique structure with ‘differential modes of association’. Finally, the boundary of a guanxi circle is not closed, and outsiders may be included in this circle. That makes the Chinese network structure flexible to opening or closing. This flexibility may be rooted in the Chinese guanxi operation, and trust plays the key role in the operation of guanxi circles. In particular, different levels of association in the circle require different types of trust.

Date: 2012
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Citations: View citations in EconPapers (9)

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DOI: 10.1080/21515581.2012.660355

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