Examining Rela tional Risk Typologies for Guanxi Boundary Spanners: Applying Social Penetra tion Theory to Guanxi Brokering

Abstract

Guanxi boundary spanners are important gate-openers and relationship-facilitators for foreign firms doing business in a close-knit Chinese society. However, little is known about the relational risks that guanxi brokers assume in working with both guanxi insiders and outsiders. Using the critical incident technique, this study conducts in-depth interviews with 33 guanxi boundary spanners. The results identify two underlying factors—social norm conflicts and guanxi ties strengths—creating four types of relational risks for guanxi brokering: Unneeded-Middleman, Profit-Exploiter, Information-Trader, and Shameless Foreign-Supporter. Applying social penetration theory to the guanxi-concentric model, we examine these risks and consequences. Managerial implications are discussed.