The Importance of Guanxi: A Case Study of An Overseas Chinese Firm in Bangkok

The notion of guanxi has caught attentions from a large number of scholars. It is viewed as a social network that bases on the norm of favours exchange which does not confine only in social aspect – it also extends to politic and business context. This paper is based on business context though it also touches socio-cultural aspect as it is inevitable for guanxi. However, instead of looking at a broad picture, the paper specifically stresses on the role of guanxi in an overseas Chinese business in Bangkok. The findings of this dissertation derive from qualitative approach which focuses on a case study of an overseas Chinese firm and its guanxi networks in Bangkok. Semi-structured interviews were conducted with 20 respondents from both internal and external stakeholders of the selected firm. The findings provide valuable sources of the importance of guanxi in business and its practical approach in business networks of the overseas Chinese firm in Bangkok. The study confirms that the utilization guanxi appears in routine business operations of the firm in which most apparent characteristics of guanxi are identified. Further, the study discusses the roles of guanxi in various aspects that are significant and beneficial to the firm or to the network’s members with extensive examples. The guanxi roles, both internal and external, indeed build the conclusion on the importance of guanxi in business context. Respondents overall view guanxi with positive connotations and treat it as necessary, but not sufficient, to business. Though it is not the only factor to determine business success, guanxi is a significant facilitator in business operations of the overseas Chinese firm and its network