How Guanxi Relates to Social Capital? A Psychological Perspective

Abstract

Problem statement: The study aims to offer a discussion on social capital and guanxi, in order to illustrate the similarities and differences between these two concepts and how Chinese guanxi varies from Western preconceptions concerning social networking. Approach: The literature review and arguments were conducted to provide a systematic discussion of the guanxi and social capital relationship. Results: Both guanxi and social capital involve social relations; it is important to appreciate that guanxi does not relate exclusively to social capital, or that guanxi itself is simply another term for social capital. Conclusion: Both guanxi and social capital are similar concepts. Social capital is considered as both the attributes of individuals and organizations; thus, guanxi is distinctively about interpersonal relationships, which are often lost within the corporate environments of large organizations.