The Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia

The concepts of ‘guanxi’ (relationships and networking) and ‘xinyong’ (interpersonal trust) in Chinese traditional ethics are often studied as the key factors that contribute to the pattern and succession of the ethnic Chinese in business practices which are based on the cultural approach. In the co...

Descripción completa

Guardado en:
Detalles Bibliográficos
Autores principales: Mohammad Fajar Ikhsan, Ahmad Bashawir Abdul Ghani, Muhammad Subhan
Formato: article
Lenguaje:EN
Publicado: UUM Press 2017
Materias:
Acceso en línea:https://doaj.org/article/4d022c0c1ea24933a87dd995dfe6c17f
Etiquetas: Agregar Etiqueta
Sin Etiquetas, Sea el primero en etiquetar este registro!
id oai:doaj.org-article:4d022c0c1ea24933a87dd995dfe6c17f
record_format dspace
spelling oai:doaj.org-article:4d022c0c1ea24933a87dd995dfe6c17f2021-11-18T04:39:26ZThe Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia10.32890/jis2017.13.71823-691Xhttps://doaj.org/article/4d022c0c1ea24933a87dd995dfe6c17f2017-12-01T00:00:00Zhttp://e-journal.uum.edu.my/index.php/jis/article/view/jis2017.13.7https://doaj.org/toc/1823-691XThe concepts of ‘guanxi’ (relationships and networking) and ‘xinyong’ (interpersonal trust) in Chinese traditional ethics are often studied as the key factors that contribute to the pattern and succession of the ethnic Chinese in business practices which are based on the cultural approach. In the context of Southeast Asia such as in Indonesia, Malaysia, The Philippines, the ethnic Chinese are one of the minority groups whose profession is dominantly that of a businessman or an entrepreneur. As stated in the literature, even though the ethnic Chinese are classified as a minority group in those countries, some of the Chinese capitalist groups had controlled 70-80% of the private business sector. However, these two traditional concepts are not the only main factors of the Chinese business success, but the ‘irregular’ business pattern such as the patronage relationship with political elites also becomes the most important criteria. Hence, this study needed to re-examine and clarify whether the implementation of the guanxi and xinyong concepts in Chinese business activities are still relevant in their business practice due to the political connection in the Chinese business succession also being a dominant variable. This study was based on a fieldwork conducted in Indonesia especially in Medan City of Indonesia and used the descriptive qualitative method through interviews and library research. This aim of this study were three fold: the first was to discuss the relevance of the guanxi and xinyong concept in Chinese business practices, the second was to discuss whether the Chinese business practices were more influenced by a formal community organization or rather influenced by an informal network among Chinese businessmen through guanxi and xinyong bases, third, this study also discussed the challenges faced by the Chinese in attempting their business interests. Mohammad Fajar IkhsanAhmad Bashawir Abdul GhaniMuhammad SubhanUUM Pressarticleethnic businesschinese businessguanxixinyongbusiness networkbusiness trustindonesiaInternational relationsJZ2-6530ENJournal of International Studies, Vol 13, Pp 97-116 (2017)
institution DOAJ
collection DOAJ
language EN
topic ethnic business
chinese business
guanxi
xinyong
business network
business trust
indonesia
International relations
JZ2-6530
spellingShingle ethnic business
chinese business
guanxi
xinyong
business network
business trust
indonesia
International relations
JZ2-6530
Mohammad Fajar Ikhsan
Ahmad Bashawir Abdul Ghani
Muhammad Subhan
The Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia
description The concepts of ‘guanxi’ (relationships and networking) and ‘xinyong’ (interpersonal trust) in Chinese traditional ethics are often studied as the key factors that contribute to the pattern and succession of the ethnic Chinese in business practices which are based on the cultural approach. In the context of Southeast Asia such as in Indonesia, Malaysia, The Philippines, the ethnic Chinese are one of the minority groups whose profession is dominantly that of a businessman or an entrepreneur. As stated in the literature, even though the ethnic Chinese are classified as a minority group in those countries, some of the Chinese capitalist groups had controlled 70-80% of the private business sector. However, these two traditional concepts are not the only main factors of the Chinese business success, but the ‘irregular’ business pattern such as the patronage relationship with political elites also becomes the most important criteria. Hence, this study needed to re-examine and clarify whether the implementation of the guanxi and xinyong concepts in Chinese business activities are still relevant in their business practice due to the political connection in the Chinese business succession also being a dominant variable. This study was based on a fieldwork conducted in Indonesia especially in Medan City of Indonesia and used the descriptive qualitative method through interviews and library research. This aim of this study were three fold: the first was to discuss the relevance of the guanxi and xinyong concept in Chinese business practices, the second was to discuss whether the Chinese business practices were more influenced by a formal community organization or rather influenced by an informal network among Chinese businessmen through guanxi and xinyong bases, third, this study also discussed the challenges faced by the Chinese in attempting their business interests.
format article
author Mohammad Fajar Ikhsan
Ahmad Bashawir Abdul Ghani
Muhammad Subhan
author_facet Mohammad Fajar Ikhsan
Ahmad Bashawir Abdul Ghani
Muhammad Subhan
author_sort Mohammad Fajar Ikhsan
title The Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia
title_short The Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia
title_full The Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia
title_fullStr The Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia
title_full_unstemmed The Relevancy of the ‘Guanxi ‘and ‘Xinyong’ Concepts in Chinese Business Capitalization in Indonesia
title_sort relevancy of the ‘guanxi ‘and ‘xinyong’ concepts in chinese business capitalization in indonesia
publisher UUM Press
publishDate 2017
url https://doaj.org/article/4d022c0c1ea24933a87dd995dfe6c17f
work_keys_str_mv AT mohammadfajarikhsan therelevancyoftheguanxiandxinyongconceptsinchinesebusinesscapitalizationinindonesia
AT ahmadbashawirabdulghani therelevancyoftheguanxiandxinyongconceptsinchinesebusinesscapitalizationinindonesia
AT muhammadsubhan therelevancyoftheguanxiandxinyongconceptsinchinesebusinesscapitalizationinindonesia
AT mohammadfajarikhsan relevancyoftheguanxiandxinyongconceptsinchinesebusinesscapitalizationinindonesia
AT ahmadbashawirabdulghani relevancyoftheguanxiandxinyongconceptsinchinesebusinesscapitalizationinindonesia
AT muhammadsubhan relevancyoftheguanxiandxinyongconceptsinchinesebusinesscapitalizationinindonesia
_version_ 1718425098832052224