CONTENTS -- Preface -- 1 Definition, Principles, and Philosophy of Guanxi -- 1.1 Concepts -- Definition -- Basis for Guanxi Establishment -- Modes -- 1.2 Principles -- 1.3 Philosophy -- 1.4 Guanxi in Social Life -- 1.5 Gifts, Bribes, and Guanxi -- 1.6 Importance in the Future -- 1.7 Theoretical Directions -- 1.8 Practical Examples -- Minicase 1: Guanxi is His Middle Name -- Minicase 2: A Smuggler with Guanxi -- 2 Economic Perspective of Guanxi -- 2.1 Economic Rationale of Guanxi -- Social Capital -- Economic Necessity -- Economic Idiom -- 2.2 Guanxi versus Western Networks -- 2.3 Guanxi as a Critical Capability -- 2.4 Business Implications -- 2.5 The Use of Guanxi by Overseas Chinese -- Economic Perspectives -- Cultural Perspective -- 2.6 Practical Examples -- Minicase 1: The New China Hong Kong Group on the Mainland -- Minicase 2: Guanxi: The First Step in Any China Venture -- Minicase 3: Business Connections by Big Six Accounting Firms -- 3 Guanxi and Firm Performance -- 3.1 Conceptual Background -- 3.2 Guanxi and Performance -- Guanxi with Other Businesses -- Guanxi with Government Officials -- Market versus Financial Performance -- Necessary versus Sufficient Condition -- Empirical Evidence -- 3.3 Managerial Implications -- 3.4 Practical Examples -- Minicase 1: Acer in China -- Minicase 2: AgriGlobal in China -- Minicase 3: Dell Strengthens Guanxi with Its Customers -- Minicase 4: Chase Capital Uses Guanxi to Expand Its Asian Business -- Minicase 5: Valuing Connections for Hong Kong's Red Chips -- 4 Organizational Dynamics and Guanxi -- 4.1 Guanxi as Inter-Organizational Network -- 4.2 Organizational Dynamics and Guanxi -- Institutional Factors -- Ownership structure -- Location -- Strategic Factor -- Strategic orientation -- Organizational Factors -- Organizational size -- Resources -- Length of operation -- 4.3 Empirical Evidence.

4.4 Practical Examples -- Minicase 1: Does Guanxi Matter in KFC? -- Operations in China -- Guanxi relations -- Minicase 2: Why is Shanghai Volkswagen Successful? -- Minicase 3: Guanxi Used by Sony -- 5 Guanxi-Based Business Strategies -- 5.1 Guanxi-based Business Strategies -- 5.2 Impact of Guanxi-based Business Strategies -- 5.3 Managerial Implications -- 5.4 Practical Examples -- Minicase 1: Sony in China -- Minicase 2: AST Owes as Much to People Connections as to Electrical Ones -- Minicase 3: Dell in China -- Minicase 4: CSI in China -- Minicase 5: Selling in China -- Minicase 6: Charoen Pokphand in China -- 6 Foreign Businesses and Guanxi -- 6.1 Foreign Businesses in China -- Shifting Environmental Conditions -- New Competitive Landscape -- Shift from scant competition to strong competition -- Shift from niche competition to massive competition -- Shift from single-market conception to multi-market competition -- Shift from structural similarity to structural multiplicity -- New Regulatory Landscape -- Shift from entrance restriction to operational intervention -- Shift from overt control to covert constraint -- Shift from separation from to convergence with domestic policies -- Shift from regulatory rigidity to regulatory elasticity -- Shifting Dominant Strategies -- Shift from parent integration to national integration -- Shift from production relocation to value chain localization -- Shift from competence transfer to competence building -- Shift from competition to coopetition with business community -- Shift from repetition to adaptive diversification -- Shift from alliance building to alliance restructuring -- 6.2 Guanxi and Foreign Businesses -- Partner Effect -- Origin Effect -- Length Effect -- Size Effect -- Empirical Evidence -- 6.3 Implications and Examples -- Minicase 1 : Hewlett-Packard's Initiatives to Build up Guanxi.

Minicase 2: Toyota in China -- Minicase 3: NEC in China -- Minicase 4: Boeing in China -- 7 Cuanxi, Corruption, and Governance -- 7.1 Nature of Corruption -- Definition -- Differences Between Corruption and Guanxi -- 7.2 Corruption in China -- Current Situation -- Types and Reasons -- 7.3 Intertwineability Between Guanxi and Corruption -- 7.4 Economics of Corruption -- 7.5 Business Implications of Corruption -- Corruption as an Evolutionary Hazard -- Corruption as a Strategic Impediment -- Corruption as a Competitive Disadvantage -- Corruption as an Organizational Deficiency -- 7.6 Governance and Guanxi -- Corporate Governance in China -- Guanxi and Governance -- 7.7 Governance and Corruption -- 7.8 Taxonomy of Corruption -- 7.9 Corruption and Organizational Environment -- Corruption and Task Environments -- Corruption and Institutional Environments -- 7.10 Corruption and Organizational Behavior -- System Malfeasance -- Procedural Malfeasance -- Categorical Malfeasance -- Structural Malfeasance -- 7.11 Corruption and Organizational Architecture -- Corporate Culture -- Organizational Structure -- Compliance System -- Conduct code -- Compliance program -- 7.12 Practical Examples -- Minicase 1: Corruption in Yuxi Cigarette -- Minicase 2: Bribe with Care -- Minicase 3: Rough Justice -- Minicase 4: Zhu's Hatchet Man in Guangdong -- Minicase 5: Anti-corruption by Shell -- Winning over hearts and minds -- Inter-company corruption -- A worthy fight -- 8 Practical Guidelines to Guanxi Cultivation -- 8.1 Constructing Your Own Guanxi Network -- 8.2 Utilizing Intermediaries -- 8.3 Searching for the Right People -- 8.4 Implanting Individual Guanxi into Organizations -- 8.5 Hiring Locals and Dispatching Ethnic Chinese -- 8.6 Monitoring Guanxi within an Organization -- 8.7 Maintaining Guanxi Relations -- 8.8 Improving Credibility -- 8.9 Practical Examples.

Minicase 1: GM in Shanghai -- Minicase 2: Xian-Janssen -- Minicase 3: Motorola in China -- Minicase 4: Solving Staffing Problems -- Minicase 5: Joint-Venture Mode and Guanxi -- Minicase 6: "Guanxi" Man Smooths Road to China -- Appendices -- 1 Summary of Anti-Corruption and Anti-Bribery Laws and Rules in China -- Forms of corruption identified in the legal codes -- New rules and regulations -- 2 Summary of Anti-Corruption and Anti-Bribery Laws and Rules in the United States -- The Anti-Bribery Provisions -- The corrupt party: The definition of "domestic concern'' and public company ("issuer") -- The recipient of the corrupt payment: Any "foreign official" -- The medium of payment: "Anything of value" -- Payments to third parties: "Knowing" the payment will be made to a foreign official -- "For the purpose of influencing" an official act or decision -- "Obtaining or retaining business" -- Defences and Exempt Transactions -- Exempt transactions -- Statutory affirmative defences -- Lawful payments -- Reasonable and bona fide promotional expenses -- The Foreign Corrupt Practices Act (FCPA) -- 3 Transnational Cooperation in Combating Corruption and Bribery -- International dimension -- OECD Convention -- Transnational efforts -- 4 OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions -- Preamble -- The Parties, -- Article 1 -- The Offence of Bribery of Foreign Public Officials -- Article 2 -- Responsibility of Legal Persons -- Article 3 -- Sanctions -- Article 4 -- Jurisdiction -- Article 5 -- Enforcement -- Article 6 -- Statute of Limitations -- Article 7 -- Money Laundering -- Article 8 -- Accounting -- Article 9 -- Mutual Legal Assistance -- Article 10 -- Extradition -- Article 11 -- Responsible Authorities -- Article 12 -- Monitoring and Follow-up -- Article 13 -- Signature and Accession -- Article 14.

Ratification and Depositary -- Article 15 -- Entry into Force -- Article 16 -- Amendment -- Article 17 -- Withdrawal -- Bibliography -- Index -- About the Author.