The role of guanxi networks in the performance of women-led firms in China

Abstract

This exploratory paper examines how knowledge acquired via guanxi (networks and connections) have enabled women-led firms in China to overcome a number of significant barriers and challenges in order to start and grow a successful business. We draw upon two case studies, in order to illustrate how they have utilized guanxi as a means of overcoming these barriers. We investigate the way in which guanxi facilitates the business owner in engaging in a process of entrepreneurial learning (Harrison and Leitch 2005; Politis, 2008) – and making connections and contacts – by which she is able to improve the firm’s performance. Further research is necessary to build upon a small number of studies that have already cleared the ground in terms of guanxi. More reliable and country-wide, but disaggregated, statistics on small businesses would be a welcome start, including information on their owner-manager’s or owner-managers’ gender