Toward a theory of resource flow based on guanxi: Key stakeholders and dynamic process model

In Confucian guanxi culture, the workplace often witnesses instances where one party leverages intimate guanxi to obtain resources for another party. Despite scholarly attention to guanxi-based resource allocation, there remains a lack of research exploring the dynamic process model through a stakeholder segmentation framework. Moreover, existing literature primarily relies on Western theoretical paradigms, resulting in a scarcity of theories concerning guanxi-based resource allocation congruent with the Eastern context. To address these gaps, our study is deeply rooted in the Chinese context, focusing on two pivotal issues: identifying key stakeholders and developing a dynamic process model. We categorize stakeholders into four distinct groups—benefactors, beneficiaries, victims, and bystanders—and constructs a nuanced three-stage dynamic process encompassing resource exchange, resource feedback, and resource balance. Ultimately, our research formulates a theoretical model of resource flow based on guanxi and contributes to the consolidation of the micro-foundation framework for guanxi-based resource allocation research. It elucidates the rationality and inevitability of guanxi-based resource allocation in China, offering potential guidance for managers on effectively balancing guanxi stakeholders.