Marketization and Its Impact On The Functional Focus, Relational Focus, and Character of Guanxi Ties

Abstract

Prior research generally neglects how guanxi is used for marketing purposes
by managers, and ignores possible differences in guanxi during marketization. In
contrast, this paper argues why and how marketization may affect the marketing
uses of guanxi, types of persons involved, and nature of their guanxi ties. As background,
it provides an overview of salient features of marketization policy and marketplace
conditions in three stages of marketization. It explains the functional focus,
relational focus, and character of guanxi ties, and how managers are likely to use
guanxi for strategic purposes at various marketization stages.