Title:
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The dynamic processes of quanxi development in Chinese innovation and entrepreneurship
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Given the increasing complexity of innovation and entrepreneurship, Chinese innovators and
entrepreneurs often develop guanxi in order to establish collaborations. In this pattern of open
innovation, mutual resources based on guanxi are able to benefit the guanxi actors. Therefore,
how innovators and entrepreneurs develop guanxi may have an impact on the outcome of their
innovation and entrepreneurship. Existing guanxi development models taking de-relational
substantial ism treat guanxi development processes as comprised of individual guanxi constructs,
which are substantial elements acting by their own powers. In consequence, the focus of existing
studies is placed on investigating the guanxi constructs, and the processes of guanxi development
are intended to reduce to these isolated guanxi constructs. However, Chinese guanxi is an
intricate social phenomenon, and people develop guanxi within certain contexts. Thus, no guanxi
construct can be separated from its situated contexts and act independently. In practice, guanxi
constructs relate to each other dynamically, so their relational nature is more significant in
developing guanxi. This research criticises the existing studies on guanxi development as static
and lacking the support of empirical research. A combined philosophical approach of
structuralism and relationism has been taken to explore the processes and dynamics of guanxi
development among Chinese innovators and entrepreneurs. This approach addresses the
relational nature of guanxi constructs, which then reflects the intricacy of the Chinese guanxi
phenomenon and the dynamic nature of guanxi development. Therefore, this relational and
structuralist approach is more relevant for understanding the guanxi development processes.
Drawing on relational sociology and structuration theory, a theoretical framework is constructed
to show the pattern of structural interactions involved throughout the entire process of guanxi
development. With empirical evidence collected from fieldwork, it is demonstrated that the
structural interactions between guanxi actors and their situated relational contexts constitute the
dynamic processes of guanxi development. This research challenges existing models, especially
their philosophical perspective of de-relational substantial ism . By extending the focus of study to
include the relational nature of guanxi constructs, this research fills the gaps in the literature on
the dynamics of guanxi development, and proposes a theoretical framework of dynamic guanxi
development processes with empirical support.
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