Guanxi’s Changing Nature: A Chinese Born Global’s Experience

What is it about?

The paper shows that engaging in guanxi can be initially beneficial for a firm's internationalization but later it can become harmful as it has to pay back much more for the "services" it got from its network members in the initial internationalization stage; moreover, some initial "helpers" may later start inhibiting the firm, especially if their "payback" is not large enough.

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Why is it important?

Many studies focus only on positive or negative sides of guanxi but this paper explains why its role can change over the years.