Understanding quality guanxi in China- A study on Vigor group

Abstract: Aim: The aim of this study is to understand how trust influence quality Guanxi in the Chinese business context.   Method: An inductive qualitative research method is adopted in this study; a single case study, interview questions and semi-structured interviews are applied to collect primary data.   Result & Conclusions: Quality Guanxi needs to build deep trust by combining cognition- and affect-based trust together in Chinese business context.  Meanwhile, Renqing gradually builds Ganqing (affection) through reciprocal behavior and empathy, and eventually leads to affect-based trust in Guanxi networks. Furthermore, cognition-based trust could be understood as initial trust in Guanxi networks.   Suggestions for future research: Due to the limited number of interviews, the result and conclusion of this study is based on only one company (Vigor) and one country (China) perspective. Therefore generalization cannot be achieved. For further studies on this field, it is necessary to increase the scope and number of interviews, such as different industries, different positions, etc.   Contribution of the thesis: This study contributes to the further understanding of Guanxi as a unique way of developing business relationships in China from the perspective of trust.  It shows how the quality Guanxi can be developed by deep trust relying on cognition- and affect-based trust.