Can guanxi be created in Sino-Western relationships? An assessment of Western firms trading with China using the GRX scale

Differences in business cultures have been found to be one of the major impediments to global business. The cultivation of guanxi, i.e., reciprocal business relations and social networks that is common in Confucian cultures, has long been recognized as pivotal for leveraging success when doing business in China. As the second largest global economy and the largest trading country, understanding China's business culture is crucial. This article describes a qualitative and quantitative assessment of guanxi-building in Sino-Israeli business relationships using the GRX scale (Ganqing, Renqing and Xinren). The results show that a modified scale involving only two constructs (Ganqing and Renqing) rather than the three successfully captures Western perceptions of guanxi. This new scale provides practitioners and academics with a useful tool for examining their level of guanxi which can lead to stronger and more fruitful business relationships with their Chinese counterparts.