ABSTRACT
This chapter explains the role that Chinese power–money social networks play in the networking strategies of Western bankers at the organizational level. It examines what it is that outsiders mean when they talk about guanxi, how they justify certain behaviours in relation to guanxi practice, and the consequences of their beliefs and behaviours for institutional change in the banking sector more generally. The chapter demonstrates that guanxi practice is not only driven by culture and tradition but is also bound up in a contested exchange of highly valued resources, including both financial and human capital. It outlines the debates in the study of guanxi, and examines how Western bankers attempt to build guanxi networks focusing on 'relationship hires' and the problems and prospects with this practice. The chapter focuses on to the interview data to investigate why Western managers think guanxi is important, how they experience it in their organizations, and the strategies they use to develop guanxi networks.
