ABSTRACT
Several research studies confirm the importance of guanxi in employment and business relationships among the Chinese. Two studies by Farh demonstrated that guanxi and relational demography were both important for subordinates trust in their supervisors, while business executives were only concerned with guanxi in dealing with their connections. Another study by Tong and Yong identifies three key aspects of personal relationships that influenced decision making: personal control, guanxi relationships, and interpersonal trust. The study of job search behaviour in the western human resource management literature suggests a primarily economic-rational explanatory framework being applied. Despite the Asian economic crisis, Guangdong province has continued to attract foreign investments, its shortfall of Southeast Asian capital inflow is replaced by increased investment from Europe, America and Taiwan. More than two-thirds of foreign investments were located in south-coastal China, particularly in Guangdong province. While often assumed to be common feature of Chinese social life, many Chinese cities are increasingly being exposed to western recruitment practices.
