Hostname: page-component-cd9895bd7-8ctnn Total loading time: 0 Render date: 2024-12-27T22:50:28.708Z Has data issue: false hasContentIssue false
  • English
  • Français

Trust, Reciprocity, and Guanxi in China: An Experimental Investigation

Part of: Guanxi Collection

Published online by Cambridge University Press:  02 February 2015

Fei Song ,
C. Bram Cadsby  and
Yunyun Bi
Fei Song
Affiliation:
Ryerson University, Canada
C. Bram Cadsby
Affiliation:
University of Guelph, Canada
Yunyun Bi
Affiliation:
Taiping Asset Management, China
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the ‘Save PDF’ action button.

We examine the influence of social distance on levels of trust and reciprocity in China. Social distance, reflected in the indigenous concept of guanxi, is of central importance to Chinese culture. In Study 1, some participants participated in two financially salient trust games to measure behaviour, one with an anonymous classmate and the other with an anonymous, demographically identical non-classmate. Other participants, drawn from the same population, completed hypothetical surveys to gauge both hypothetical behaviour and expectations of others. Social distance effects on actual and hypothetical behaviour were statistically consistent. The results together corroborated the hypothesized negative relationship between trust and social distance. However, reciprocity was not responsive to social distance. Study 2 found that affect-based trust, but not cognition-based trust, played a mediating role in the relationship between social distance and interpersonal trust in a hypothetical scenario. We conclude that close guanxi ties in China engender affect-based trust, which is extended to shouren classmates. This is true despite the fact that no more cognition-based trust is placed nor reciprocity received or expected from classmates compared to demographically identical shengren non-classmates.

Keywords

affect-based trustChinaguanxireciprocitytrust基于情感的信任中国关系互惠信任
Type
Articles
Information
Management and Organization Review , Volume 8 , Issue 2 , July 2012 , pp. 397 - 421
Copyright
Copyright © International Association for Chinese Management Research 2012

References

Akerlof, G. A. 1997. Social distance and social decisions. Econometrica, 65(5): 1005–1027.Google Scholar
Baron, R. M., & Kenny, D. A. 1986. The moderator-mediator variable distinction in social psychological research: Conceptual, strategic, and statistical considerations. Journal of Personality and Social Psychology, 51(6): 1173–1182.CrossRefGoogle ScholarPubMed
Berg, J., Dickhaut, J., & McCabe, K. 1995. Trust, reciprocity, and social history. Games and Economic Behavior, 10(1): 122–142.Google Scholar
Berry, J. W. 1994. An ecological perspective on cultural and ethnic psychology. In Trickett, E.J. Watts, R.J. & Birman, D. (Eds.), Human diversity: Perspective on people in context: 115–141. San Francisco, CA: Jossey-Bass.Google Scholar
Bian, Y. 1997. Bring strong ties back in: Indirect ties, network bridges, and job searches in China. American Sociological Review, 62(3): 366–385.Google Scholar
Bolton, G. E., Brandts, J., & Ockenfels, A. 1998. Measuring motivations for the reciprocal responses observed in a simple dilemma game. Experimental Economics, 1(3): 207–219.Google Scholar
Bond, M. H. 1991. Beyond the Chinese face: Insights from psychology. Oxford: Oxford University Press.Google Scholar
Brislin, R. W. 1980. Translation and content analysis of oral and written material. In Triandis, H. C. & Berry, J. W. (Eds.), Handbook of cross-cultural psychology: 389–444. Boston, MA: Allyn & Bacon.Google Scholar
Buchan, N., & Croson, R. 2004. The boundaries of trust: Own and others' actions in the U.S. and China. Journal of Economic Behavior and Organization, 55(4): 485–504.Google Scholar
Buchan, N., Johnson, E. J., & Croson, R. 2006. Let's get personal: An international examination of the influence of communication, culture and social distance on other regarding preferences. Journal of Economic Behavior and Organization, 60(3): 373–398.Google Scholar
Burt, R. S. 1992. Structural holes: The social structure of competition. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
Butterfield, F. 1982. China: Alive in the bitter sea. New York: Times Books.Google Scholar
Camerer, C. F. 2003. Behavioral game theory: Experiments in strategic interaction. Princeton: Princeton University Press.Google Scholar
Chai, S. K., & Rhee, M. 2010. Confucian capitalism and the paradox of closure and structural holes in East Asian firms. Management and Organization Review, 6(1): 5–29.Google Scholar
Charness, G., & Rabin, M. 2002. Understanding social preferences with simple tests. Quarterly Journal of Economics, 117(3): 817–869.Google Scholar
Chen, X. P., & Chen, C. C. 2004. On the intricacies of the Chinese guanxi: A process model of guanxi development. Asia Pacific Journal of Management, 21 (3): 305–324.Google Scholar
Chen, C.C., Chen, Y. R., & Xin, K. 2004. Guanxi practices and trust in management: A procedural justice perspective. Organization Science, 15(2): 200–209.Google Scholar
Chiao, C. 1982. Guanxi: A preliminary conceptualization. In Yang, K. S. & Wen, C. I. (Eds.), The sinicization of social and behavioral science research in China: 345–360. Taipei: R.O.C.: Academia Sinica.Google Scholar
Child, J., & Mollering, G. 2003. Contextual confidence and active trust development in the Chinese business environment. Organization Science, 14(1): 69–80.Google Scholar
Chua, R. Y. J., Morris, M. W., & Ingram, P. 2009. Guanxi vs. networking: Distinctive configurations of affect- and cognition-based trust in the networks of Chinese vs. American managers. Journal of International Business Studies, 40(3): 490–508.CrossRefGoogle Scholar
Cox, J.C, & Deck, C. A. 2005. On the nature of reciprocal motives. Economic Inquiry, 43(3):623–635.Google Scholar
Farh, J. L., Tsui, A. S., Xin, K., & Cheng, B. 1998. The influence of relational demography and guanxi: The Chinese case. Organizational Science, 9(4): 471–488.Google Scholar
Fukuyama, F. 1995. Trust: Social virtues and the creation of prosperity. London: Hamish Hamilton.Google Scholar
Garbarino, E., & Slonim, R. 2009. The robustness of trust and reciprocity across a heterogeneous U.S. population. Journal of Economic Behavior & Organization, 69(3): 226–240.Google Scholar
Granovetter, M. 1985. Economic action and social structure: The problem of embeddedness. American Journal of Sociology, 91(3): 481–510.Google Scholar
Gunnthorsdottir, A., McCabe, K., & Smith, V. 2002. Using the Machiavellianism instrument to predict trustworthiness in a bargaining game. Journal of Economic Psychology, 23(1):49–66.Google Scholar
Guo, C, & Giacobbe-Miller, J. 2010. Guanxi dynamics and entrepreneurial firm creation and development in China. Management and Organization Review, 6(2): 267–291.Google Scholar
Hofstede, G. 1991. Cultures and organizations: Software of the mind. New York: McGraw-Hill.Google Scholar
Hogarth, R. M., & Reder, M. W. 1987. Rational choice: The contrast between economics and psychology. Chicago, IL: University of Chicago Press.Google Scholar
Hwang, K. K. 1987. Face and favor: The Chinese power game. American Journal of Sociology, 92(4): 944–974.Google Scholar
Jacobs, J. B. 1979. A preliminary model of particularistic tics in Chinese political alliances: Kan-ch'ing and Kuan-hsi in a rural Taiwanese township. The China Quarterly, 78: 237–273.CrossRefGoogle Scholar
King, A. Y. 1991. Kuan-hsi and network building: A sociological interpretation. Daedalus, 120(2): 63–84.Google Scholar
Levin, D. Z., & Cross, R. 2004. The strength of weak ties you can trust: The mediating role of trust in effective knowledge transfer. Management Science, 50(11): 1477–1490.Google Scholar
Lewicki, R. J., & Bunker, B. B. 1995. Trust in relationships: A model of trust development and decline. In Bunker, B. B. & Rubin, J. (Eds.), Conflict, cooperation and justice: Essays inspired by the work of Morton Deutsch, The Jossey-Bass management series and the Jossey-Bassy conflict resolution series: 122–173. San Francisco, CA: Jossey-Bass.Google Scholar
Lewicki, R. J., McAllister, D. J., & Bics, R. J. 1998. Trust and distrust: New relationships and realities.Academy of Management Review, 23(3): 438–458.Google Scholar
Li, S. X., Yao, X., Sue-Chan, C., & Xi, Y. 2011. Where do social ties come from: Institutional framework and governmental tie distribution among Chinese managers. Management and Organization Review, 7(1): 97–124.Google Scholar
Loewenstein, G. 1996. Out of control: Visceral influences on behavior. Organizational Behavior and Human Decision Processes, 65(3): 272–292.Google Scholar
Luo, Y. D. 2000. Guanxi and business. Singapore: World Scientific Publishing.Google Scholar
Mann, L., Radford, M., & Kanagawa, C. 1985. Cross-cultural difference in children's use of decision rules: A comparison between Japan and Australia. Journal of Personality and Social Psychology, 49(6): 1557–1564.Google Scholar
McAllister, D. J. 1995. Affect- and cognition-based trust as foundations for interpersonal cooperation in organizations. Academy of Management Journal, 38(1): 24–59.Google Scholar
Mayer, R. C, Davis, J. H., & Schoorman, F. D. 1995. An integrative model of organizational trust. Academy of Management Review, 20(3): 709–734.Google Scholar
Murnighan, J. K. 1994. Game theory and organizational behavior. In Staw, B. M. & Cummings, L. L. (Eds.), Research in organizational behavior: 83–123. Greenwich, CT: JAI Press.Google Scholar
Ng, K. Y., & Chua, R. Y. J. 2006. Do I contribute more when I trust more? Differential effects of cognition- and affect-based trust. Management and Organization Review, 2(1):43–66.Google Scholar
Pillutla, M. M., Malhotra, D., & Murnighan, J. K. 2003. Attributions of trust and the calculus of reciprocity. Journal of Experimental Social Psychology, 39(5): 448–455.Google Scholar
Pruitt, D. G., & Kimmel, M. J. 1977. Twenty years of experimental gaming: Critique, synthesis, and suggestions for the future. In Roscnzweig, M. R. & Porter, L. W. (Eds.), Annual review of psychology: 363–392. Palo Alto, CA: Annual Reviews.Google Scholar
Rabin, M. 2002. A perspective on psychology and economics. European Economic Review, 46(4–5): 657–685.Google Scholar
Robinson, S. L 1996. Trust and breach of the psychological contract. Administrative Science Quarterly, 41(4): 574–599.Google Scholar
Rotter, J. B. 1967. A new scale for the measurement of interpersonal trust. Journal of Personality, 35(4): 651–665.Google Scholar
Rousseau, D. M., Sitkin, S. B., Burt, R. S., & Camerer, C. 1998. Not so different after all: A cross-discipline view of trust. Academy of Management Review, 23(3): 393–404.CrossRefGoogle Scholar
Shweder, R. A. 1990. Cultural psychology: What is it? Stigler, J. W. Shweder, R. A. & Herdt, G. (Eds.), Cultural psychology: Essays on comparative human development: 1–46. Cambridge: Cambridge University Press.Google Scholar
Smith, V. L. 1976. Experimental economics: Induced value theory. American Economic Review, 66(2): 274–279.Google Scholar
Song, F. 2008. Trust and reciprocity: The differing norms of individuals and group representatives. Games and Economic Behavior, 62(2): 675–696.CrossRefGoogle Scholar
Song, F. 2009. The effect of the consensus-making process on intergroup trust and reciprocity in strategic interactions. Organizational Behavior and Human Decision Processes, 108(1): 164–173.Google Scholar
Su, C, & Litdefield, J. E. 2001. Entering guanxi: A business ethical dilemma in mainland China? Journal of Business Ethics, 33(3): 199–210.Google Scholar
Triandis, H. C. 1995. Individualism and collectivism. Boulder, CO: Westview Press.Google Scholar
Tsui, A. S., & Farh, J. L. 1997. Where Guanxi matters: Relational demography and guanxi in the Chinese context. Work and Occupations, 24(1): 56–79.Google Scholar
Van Boven, L., Dunning, D., & Loewenstein, G. 2000. Egocentric empathy gaps between owners and buyers: Misperceptions of the endowment effect. Journal of Personality and Social Psychology, 79(1): 66–76.CrossRefGoogle ScholarPubMed
Wasti, S. A., Tan, H. H., & Erdil, S. E. 2011. Antecedents of trust across foci: A comparative study of Turkey and China. Management and Organization Review, 7(2): 279–302.Google Scholar
Webber, S. S., Chen, G., Marsh, S., & Payne, S. 1999. Performance appraisal research contributes to team mental model measurement. In Zaccaro, S.J. (Chair) & Hofmann, D. A. (Discussant), Breaking barriers in team research: New methodologies and applications for team research and practice. Symposium conducted at the 1998 annual meeting of the Academy of Management, San Diego, CA.Google Scholar
Wilson, R. K., & Eckel, C. C. 2011. Trust and social exchange. In Druckman, J. N. Green, D. P. Kuklinski, J. H. & Lupia, A. (Eds.), Handbook of experimental political science. Boston, MA: Cambridge University Press.Google Scholar
Xin, K. R., & Pearce, J. L. 1996. Guanxi: Connections as substitutes for formal institutional support. Academy of Management Journal, 39(6): 1641–1658.Google Scholar
Yamagishi, T. 1998. The structure of trust: The evolutionary games of mind and society. Tokyo: Tokyo University Press.Google Scholar
Yang, K. S. 2000. Monocultural and cross-cultural indigenous approaches: The royal road to the development of a balanced global psychology. Asian Journal of Social Psychology, 3(3):241–263.CrossRefGoogle Scholar
Yang, M. M. 1994. Gifts, favors and banquets: The art of social relationships in China. Ithaca, NY: Cornell University Press.Google Scholar