Abstract
This research investigates the evolution of guanxi, a traditional Chinese relationship-building system, within the context of digital transformation in business practices. It conceptualises its progression through four stages, including guanxi 1.0, 2.0, 3.0 and 4.0. This conceptualisation shows the stages that guanxi has developed from interpersonal and localised exchange to digitally mediated and globalised relationship. This research especially pays attention to the fourth stage, guanxi 4.0, to discuss “IT-mediated” guanxi, a paradigm where advanced digital technologies, including social media, cloud computing, big data, blockchain and Artificial Intelligence (AI), fundamentally redefine the modes in which guanxi is formed and applied in today’s Chinese business context.
The main objectives of this research are to develop a conceptual framework for IT-mediated guanxi, determine its role in developing B2B relationships, and evaluate the organisational effects in the Chinese market. This research bridges between existing Chinese cultural values of trust, reciprocity and mutual benefits, and today’s technological innovation through using Social Capital Theory (SCT) and Relationship Marketing Theory (RMT). This research employs qualitative methodologies, conducting 61 semi-structured interviews to explore how advanced digital technologies are applied to enhance organisational trust, facilitate strategic decision-making, and support inter-organisational collaboration in Chinese ICT, manufacturing and construction sectors.
The research results indicate that guanxi 4.0 facilitates real-time and scalable interactions, especially in ICT and manufacturing industries that rely on digital tools to enhance network and efficiency. By contrast, the construction sector is more entrenched in traditional practices and exhibits less integration of IT-mediated guanxi, which reflects this sector’s people-intensive nature.
This research makes significant theoretical and practical contributions by conceptualising the stages of guanxi development and integrating cultural heritage and digital innovation in business guanxi practices. In addition to enriching existing literature, this research also presents action strategies that businesses can undertake to leverage IT-mediated guanxi to cope with the complexities of China’s digital economy. The research results highlight the need to adopt a balanced perspective that combines technology innovation with the existing cultural values of guanxi, accommodating organisations’ development of resilience and adaptability in increasingly competitive and globalised markets.