Relational and Transactional Rationalities in Chinese Thought and Social Practice

Both relational and transactional rationalities are central concepts in Chinese thought and social practice. Historical and philosophical foundations of these rationalities are examined, focusing on diverse influential schools such as Confucianism, Daoism, and Legism, and their respective impact on Chinese business culture and economic history. The chapter highlights the evolution of traditional business ethics, also in response to Western influences, and the resurgence of relational approaches in contemporary entrepreneurship. By analysing the flexibility and application of both rationalities in modern society, this chapter underscores the importance of applying a relational perspective in managing a guanxi network while also integrating a transactional perspective to navigate the complexities of global business environments.