The influence of guanxi and mianzi on professional

network in Chinese business.

An End Term Paper Presented to

The Department of Dharma Studies at
Somaiya Vidyavihar University, Mumbai

By

Ishani Kotwal

August, 2021

Under the Supervision of

Dr. Satyendra Kumar Upadhyay
 Student’s Declaration

I, Ishani Girish Kotwal, declare that the End Term Paper titled ‘The influence of guanxi and mianzi
on professional network in Chinese business’, submitted by me in partial fulfillment of the
requirements for End Term Paper at K J Somaiya Institute of Dharma Studies, Mumbai, is the
record of the work carried out by me during the period from May 2021 to August 2021, under the
guidance of Dr. Satyendra Kumar Upadhyay.
To the best of my knowledge the thesis is a record of authentic work carried out by me during the
said period and has not been submitted to any other University or Institute for the award of any
degree/diploma.
I further declare that the material obtained from other sources have been duly acknowledged in the
thesis.

Signature of the Candidate:

Date: 14 August 2021
Place: Mumbai, Maharashtra
 Paper : Doing Business with China

Topic: The influence of mianzi and guanxi on professional network in Chinese

business.
(A comparative study of Chinese concept of mianzi and Western concept of brand.)

Abstract

Purpose – Chinese society and business is influenced by the Chinese philosophy even today. Confucian
principles not only changed the way China is today, but also influenced every aspect of the Chinese society.
Especially after the opening up and reform of China, it opened its doors to the West and the trade and
investment grew in China. This paper aims to look into the impact of mianzi and guanxi has on the Chinese
business and focus on the influence it has in the professional network.
Methodology – Secondary data and research has been included in the paper. A secondary survey conducted
is used to analyze the effects of mianzi and guanxi in professional networking. A total of 19 papers are used
in the review.
Findings – The findings in this paper are related to the role of mianzi and the influence it has on building
guanxi while doing business with China. It is understood that, more than having face, maintaining face is
highly important in the business network. All relationships are based on trust and the higher the trust the
better the relationship hence, the higher the mianzi, it is seen that the parties are likely to engage in favor-
giving more than the rest.
Practical implications – Business is common all around the world. Investments and increasing the
professional network are the ultimate goals for any business that comes into existence. Therefore,
understanding the importance of ‘having, gaining and maintaining a face’ is important for all the business
leaders, especially while dealing with China. This paper helps understand how one can make use of the
mianzi while building guanxi with any business in China.
Originality/ value – To the best of author’s knowledge, there has been no comparative study before done
between the Western and the Eastern impression or perspective of mianzi. A study of how this concept is
similar and universal however used in different context.
Key words – Business, guanxi, mianzi, professional network, China.
Paper type – Research paper.
A. Introduction
B. Research objectives
C. Literature review
D. Methodology
E. Results/Data Analysis
F. Discussion
G. Novelty of paper
H. Future scope
I. Conclusion
J. References

A. Introduction
China is a country that is culturally rich and has been influenced by traditional values over the years.
Chinese philosophies have impacted the way people live, think and behave and they are considered
extremely important in the Chinese culture. Some of the values and philosophies are even today
considered the basis of governance and business.
Guanxi is such a principle that stems from Confucianism. Guanxi 关系 consists of two characters guan
关 meaning ‘gate’ or ‘hurdle’ and xi 系 meaning ‘tie’. This can be loosely translated to being connected
or passing the barrier. In a more philosophical way, it can also mean the way our representation changes
inside and outside a door. Guanxi was not seen during the Confucius time, but scholars believe that it
comes from the Confucian principle wulun 五伦 which divides the society into five relationships
namely father-son, husband-wife, ruler-subject, elder brother-younger brother and friend-friend.
All of these relationships have two parties who behave according to their individual duties. Chinese
society is likely to divide all relationships into such five categories which is also the reason why guanxi
is important. Chinese business is deeply influenced by the Confucian principles that have changed the
country over the years.
Guanxi and mianzi are two core concepts that have impacted how the Chinese do business with the
other parties. These principles are extremely important have professionally and culturally shaped China
into what it is now. Mianzi 面子 is a concept commonly and widely used while doing business with
China. Mianzi can be loosely translated to ‘having a face’. Mianzi is extremely important in building
guanxi or connections which is an integral part of business in China, ultimately boosting the Chinese
economy. Saving a face is a term common in Western thought whereas ‘gaining face’ is a concept we
understand from the Chinese.
 China is a country always known for its hierarchical structure. Mianzi is about the title and hierarchy
one holds. Status or position can be equivalent to the mianzi, how one engages with people can decide
the face or mianzi one has. Understanding and applying mianzi while doing business with China is
crucial and very important in Chinese culture. Directly or indirectly mianzi is always considered
important not only the Chinese culture but also in the Western business relationships. It is closely
similar to ‘brand’ which decides and adds significance to any product or title.

B. Research Objectives

i. To understand and measure the impact of mianzi in professional relationships.

ii. To study guanxi and its effects on business relationships in China.
iii. To examine the difference between Western and Eastern business relationships with China.
iv. To identify the influence of mianzi in the business network.

C. Literature Review
Zhao et. al., talks about the rise in Chinese economy has been rapid in the recent years. As a result, Chinese
market has opened its doors to the world allowing western market in doing business with China. Chinese
market is regulated and complex and Confucianism is deeply rooted in all the aspects of business in China
[Zhao, Castka, 2020]. With being one of the largest markets in the world, attracts business from all over
the world and is perceived as a huge market with potential [Yang, 2011]
According to Luo (2000), opening up of the economy, over 300,000 foreign companies invested in Chinese
market, although doing business with China was challenging as the West was new to the culture and the
concepts. After the economic open- door policy, Chinese market has opened its doors to various industries
all over the world making itself a huge market. China now has become a pillar market worldwide. Now,
with the opening up of China, markets worldwide were looking for doing business with China. As a result,
being a complex market had to be familiar with the critical necessities.
Guanxi is a basic concept used while doing business with China. It refers to a personalized influence on
social network [Zhao, Brookshire, 2010]. Relationships play a very important role in China and are a
symbol of trust. While doing business with China, guanxi is used as a way to build trust and closer
relationships. Western business might find this unethical behavior, whereas Chinese believe it to be the
core of doing business with China [Understanding the concept of “guanxi”]. Guanxi can be described as a
personal relationship between two independent individuals which also includes exchange of favors [Yang,
2011].
“The Chinese business model tends to be less contractual and more based on trust and the guanxi so there
can be a sense of frustration. It’s slower to build relationships, but having said that, once trust has been
established the Chinese partners and entities normally want to move very quickly,” John Russell, Director,
North Head.

There are different ways of building guanxi, few of them could be a) having knowledge about the culture
and general knowledge of China; knowing about the market and the country one is investing in can be
important for building relationships in business, b) formal introduction; Chinese people like to do business
with the people they are comfortable with and those who they trust, hence the social standing and status
might be an easier way to gain the trust , c) conscious effort; Chinese not only the personal relationships as
well as the business are mainly based on trust and respect more than in the West, hence making an effort to
maintain them plays an important role in the business, d) dining together; unlike the West, Chinese are open
to dining in the professional setting and are tend to invite the people who they are in business with for
dinners and entertainment activities together, e) gifts; gifts not to be confused with bribes are important in
the business culture, gifts with the company’s logo or symbol are even well received. Building and
maintaining the networks made can have a deeper impact while conducting, growing and maintaining
business in China [Understanding the concept of “guanxi”].
Guanxi can consist of renqing, mianzi and lijie. Guanxi and mianzi are prominent features of Chinese
culture. Mianzi or face is considered to be equally important while doing business with China. The
recognition of an individual’s social standing and status can be a definition of mianzi [Buckley et. al., 2006].
Lockett (2000)7 mentions that mianzi is not easy to define, but Lu Xun (1934: 131) noted, 'It is all very well
if you don't stop to think, but the more you think the more confused you grow. There seem to be many
kinds: each class in society has a different face'. This can be considered to be a part of every society but
holds an important position in the Chinese culture. Chinese culture has various phrases and principles to
explain the importance of face. According to the Chinese culture, mianzi has different characteristics being
a) the face can be measured, b) the amount of face can be altered, c) face can be exchanged, d) face is
mutual in nature, e) face is influenced by others, f) saving and giving face is important [Cardon and Scott,
2003].
Maintaining relationship is equally important as to protect mianzi or prestige. Personal and interpersonal
relationships are valued and have the necessity of mianzi. Building the network is directly related to saving
mianzi and identifying social resources. Hence, mianzi can be considered as a significant characteristic in
maintaining guanxi [Sheriff et. al., 1999]. Saving mianzi and having guanxi complement each other and
they operate in reciprocation. In a business relationship, all the parties must have respect and save mianzi
for each other [Buckley et. al., 2006].
Zhao et. al. note that there are three types of guanxi namely a) personal guanxi b) business guanxi c)
governmental guanxi
a) Mianzi and personal guanxi
Lianmian is a concept associated with guanxi. It consists of two characters lian meaning face and mianzi
meaning expressions of one’s respect and dignity. Lianmian and guanxi are principles that are deeply rooted
in Confucianism that promote the value of lianmian in order to obtain respect, prestige and power as well
as influence the interactions [Zhao et. al., 2020]. The Chinese society is influenced by the Confucian
principles and believe that lianmian is necessary for a person just like the bark is important to the tree.
Gaining face, saving face and losing face are important terms of respecting lianmian [Xiaoli Zhao, Pavel
Castka, 2020].
b) Mianzi and business guanxi
In the Chinese business context, developing and maintaining guanxi as well as saving mianzi can build trust
amongst the partners. Due to the uncertain and opportunistic behavior seen in the businesses, building trust
is considered to be of utmost importance [Buckley et. al., 2006]. Having and saving face are specifically
important skills to have for decision making in the Chinese business. Giving face can mean giving a praise
or a concession in order to build trust and influence the party. Saving or protecting face refers to gaining
the lost face due to some kind of interaction or wrong doing to protect their social status and order [Cardon
and Scott, 2003]. Losing face is a serious principle in the Chinese context as well. Actions like avoiding a
request, anger, behaving arrogantly can lead up to losing one’s face. Not considering face can refer to
considering face unimportant and secondary. A larger context of cooperation generally considers face
secondary and can have discussions without being worried about considering face [Zhao, Castka, 2020].
c) Mianzi and governmental guanxi
Guanxi is not only used for personal reasons but also for governmental influences. Some business
operations need governmental intervention and hence the officials use guanxi as a way to compensate for
the lack of resources [Zhao et. al., 2020]. Business relations can be considered more horizontal meaning
between the firms and associations whereas governmental guanxi are more vertical meaning between the
officials and authorities. Government intervention is a core principle in the environment of institutional
uncertainty [Luo, 2005]. Foreign investors are not aware of the Chinese government and the authoritarian
role that it holds at the domestic and global platform. Respect for age and hierarchy, to avoid any conflicts,
harmony and maintaining mianzi are Confucian values that are highly valued while interacting with the
local and central government [Buckley et. al., 2006].

Source Research question Hypothesis

Peter C. King, An 1. What is the relationship between H1: There is no significant
Examination of the Role the perceptions of the importance relationship between the
of Lian (Face) in of lian and the home environment perceptions of the importance of
Mainland Chinese while growing up, the education lian and the home environment
Business Practices, 2010, received, and exposure to Western while growing up, the education
p.68,69. ideas either by studying abroad or received, and exposure to Western
by working in a global ideas either by studying abroad or
organization? by working in a global
organization.
H2: There is a significant
relationship between the
perceptions of the importance of
lian and the home environment
while growing up, the education
received, and exposure to Western
ideas either by studying abroad or
by working in a global
organization.
Peter C. King, An 2. What is the relationship between H1: There is no significant
Examination of the Role the perceptions of the importance relationship between perceptions
of Lian (Face) in of lian and the perceptions of other of the importance of lian and the
Mainland Chinese variables such as mianzi, guanxi, other perceptions such as mianzi,
Business Practices, 2010, and xinyong? guanxi, and xinyong.
p.68,69. H2: There is a significant
relationship between perceptions
of the importance of lian and the
perceptions of other variables such
as mianzi, guanxi, and xinyong.
 Tsang, K. K., Ng, T. K., & 3. The saving face subscale of the
Wang, Y. (2013). Chinese cultural value measures
Ingratiation, renqing, (Qian, et al., 2007) was adopted to
mianzi and attraction: a investigate the sense of mianzi.
guanxi perspective. There were 4 items rating from
Scientific Journal of Pure strongly agree (score = 5) to
and Applied Sciences, strongly disagree (score = 1). The
2(2), 95-105. sample items are as the follows –
(i) I do not mind suffering
hardships in order to
preserve face.
(ii) I worry about losing face
in daily life
H1: the higher the sense of mianzi,
the more frequent the use of the
ingratiation tactics of other
enhancement, conformity, and
self-presentation.
H2: the effects of the senses of
mianzi and attraction on
ingratiation were mediated by the
sense of renqing.

Zhang, M., & Hartley, J. 4. Does guanxi influence product H1: Guanxi with suppliers,
(2018). Does guanxi performance and customer distributors and customers is
influence product loyalty? positively related to new
performance and product performance (quality,
customer loyalty? Journal delivery and price).
of Asia Business Studies, H2: Guanxi with suppliers,
12(3), 233-252. distributors and customers is
positively related to customer
loyalty.
H3: New product performance is
positively related to customer
loyalty.

D. Methodology
Use of secondary data – referred to research papers, journals written relating to the topics of guanxi and
mianzi, also the influence of brand equity. The use of secondary data helped me revisit the existing research
topics, journals and articles and understand the study that has been done with regards to the business in
China. They had already been examined, worked upon and well-researched which helped in getting
authentic data and information. Reference taken from secondary research and survey done.
A model from the secondary research used to understand and measure the impact of mianzi and how it has
an effect on the business relationships in China.

E. Result/Data Analysis
Business face strategies are important while doing business with China. These strategies include
indirectness, intermediaries, praising, requests and shaming. Losing the face is extremely important and
hence, the Chinese tend to use indirectness to convey their opinions. Use of intermediaries in order to save
the losing face is necessary to manage business relationships for mediating certain issues. Giving face is all
about praising the business counterparts in order to give them recognition. A mutually benefited business
relationship relies on the direct requests made and favors asked to the other party. Denying a request can
result into losing face and hence threatening the existing business relationship [Cardon and Scott, 2003]
Cardon, Scott (2003) mentions an example of how mianzi in Chinese business and dealings plays an
important role. A China based factory had provided defective goods to their Western counterpart and as a
result they claimed compensation to the Chinese factory. The superior of the factory denied to pay the
compensation because they did not want to “lose face” in the Foreign Trade Office. Here we can see that
face is mutual in nature. The Chinese factory representative is answerable to the superior and the superior
to the Foreign Trade Office, being a web of relationships. Another important point to be noted is that the
amount of face you hold in a relationship. In this case, the Western counterpart was less important compared
to the Foreign Trade Office. The Western counterpart came up with a solution, they hired a third party from
Hong Kong who worked as an intermediary. The third party was dealing with the Chinese factory for two
years buying from them at a reduced price. This way the Western counterpart made up for their
compensation and did not have to directly deal with the Chinese factory.
Another case of Shanghai Bell is seen based on the basis of trust and guanxi. ‘‘The Chinese engineers in
Shanghai Bell are first class. They are not inferior to any engineers in the West.’’ (Belgian senior manager).
The technical capabilities of the Chinese engineers were highly appreciated and the suspicion of the Belgian
partner turned into confidence on the Chinese counterpart. As a result of the guanxi, Alcatel Bell agreed to
set up Shanghai Bell hence, the West understood the importance of maintaining the guanxi [Buckley et. al.,
2006].
After analyzing the secondary data collected and studying the different models and methods that scholars
have come up with, it is evident that mianzi is necessary to maintain the guanxi especially in the Chinese
business. Any communication is the basis of a relationship and communication is directly related to how
much network we create. In business especially, network is considered of the utmost importance. Increasing
professional network is beneficial for the business, like the investors and ultimately for the economy. Mianzi
is directly related to the trust, status or position one holds in the network.
Kwok et. al., talks about ingratiation which is mostly known in the Western culture. Ingratiation can be
simply termed as giving away favors in order to have face. Guanxi and mianzi can be considered somewhat
similar to the concept of ingratiation and this study measures the attraction and ingratiation from the guanxi
perspective. The study is done with 203 volunteers and the study results show (1) the higher the sense of
mianzi, the more frequent the use of the ingratiation tactics of other enhancement, conformity, and self-
presentation; (2) the effects of the senses of mianzi and attraction on ingratiation were mediated by the
sense of renqing.
What we can understand from the above findings that mianzi, in, fact, plays an important role in the Chinese
business. The higher the mianzi, the more likely are the parties to do favors for attracting the business and
building guanxi. Therefore, making it certain that mianzi plays an important role in building trust and guanxi.
More than making connections, Chinese society believes in maintaining the relationships that are made.
 Fig.1

Sense of mianzi*
Conformity

Sense of renqing
Other enhancement

Sense of renqing Sense of self-presentation

Sense of attraction**

Mianzi and sense of attraction are considered to be the factors involved in defining ingratiation. The basic
requirement is that the independent variables have an effect on the direct variable. Each of the aspects of
ingratiation were based on the factors of mianzi and attraction. We can understand from this (Fig.1) that the
sense of mianzi and attraction which are the independent variables directly influence the sense of renqing
which can be called the mediator in this case, which has direct influence on the two dependent variables.
*After controlling the effect of attraction, it was seen that mianzi has influence on conformity, other
enhancement as well as self-presentation. The mediating factor here is renqing which directly influences
the other enhancements and self-representation and conformity. To understand in a simple way, mianzi was
directly influencing conformity without the mediating factor of renqing. Having said that, other
enhancement and sense of self-presentation were the independent variables with a mediator of renqing.
**However, after adjusting mianzi, unexpectedly it had less influence of conformity and other enhancement
(in negation). In other words, higher attraction is related to self-presentation which has a lower influence
of both conformity and other enhancement. Sense of renqing acts as a mediator in this case as well. As a
result, sense of renqing is only the mediator for attraction with self-presentation.
In conclusion, we can say that it is necessary for the independent variables to have a direct influence on the
mediator. The mediator in this case which was the sense of renqing had affect on the dependent variables
which are other enhancement and self-presentation but not on conformity after adjusting the effects of the
independent variables which are the sense of mianzi and attraction. Renqing had a significant influence on
the two dependent variables.
Finally, the study carried by K.K. Tsang et. al., shows that the Chinese might engage into tactics like favors,
other enhancement and self-presentation if they feel that renqing is important to build the guanxi. Similarly,
if they think mianzi is important they might get into tactics like other enhancement, self-presentation as
well as conformity. Although the sense of attraction might not have direct effects on ingratiation, both this
sense as well as the sense of mianzi had indirect influences on the tactics of other
enhancement, self-presentation and favor rendering through the sense of renqing. To some extent, these
findings confirm most of the hypotheses derived from the guanxi perspective. In this sense, the guanxi
perspective may be applicable to understand ingratiation in Chinese societies as a guanxi management
strategy rather than attraction seeking behavior [Tsang et al., 2013].
 Chinese Culture Western Culture
Group oriented approach Individual oriented approach
Importance given to relationship building Importance given to achieving goals
Conflicts are avoided Conflicts are encouraged for better
understanding
Harmony is preferred over confrontation Immediate resolution of issues is preferred
Communication is top to bottom Communication is multi-directional
“No” ends the negotiations “No” can mean there is a way to make another
offer
“Yes” can mean that the negotiations can “Yes” means it is a seal to an agreement and
continue requires to close the deal

Kwock et. al., talks about the differences in the approaches of Western and Eastern culture with regards to
the contracts in businesses. Chinese culture is significantly different from the Western culture. There are
some practical reasons as well besides the philosophical ones for the way Chinese have developed their
business practices. China is the second largest food market in the world and we can see that it feeds almost
20% of the world’s population hence we can say that China was an agrarian country and the way they
developed relationships was through building trust and network unlike the West where relationships are
built only for a stronger business network. Since there were no laws and regulations for the business, people
relied on the guanxi and maintaining the trust. People had dealings with family, friends and the people in
around the community hence no laws and rules were required. Considering the recent past of China, like
the Cultural Revolution, guanxi again gained importance in the Chinese society [Gold, 1985].
Continuing the discussion on agriculture and the reasons why China is reliant more on building and
maintaining the network, is we compare China to a country like India which is and has been reliant on
agriculture which is almost 55%. Having said that, India is closer to the Western culture, especially when
it comes to business. Other countries in Asia have been dealing with businesses in the West since a long
time and have adapted to the Western ways easily. In case of China, initially being a conservative and
communist country, took long to open up their markets to the rest of the world. As a result, China kept their
traditional ways in business dealings and are significantly different from the rest of the world.

F. Discussion
Referring to the data above, it is seen that the importance of mianzi is recognized in the Chinese society.
Mianzi and the sense of attraction are the independent variables and giving favors, self-presentation and
guanxi are considered to be the dependent variables. It is also important to understand that the mianzi affects
the guanxi in a greater way and is a way to maintain the network in and around China. Chinese society is
significantly influenced by the philosophies and the conceptualization in China and the rest of the world of
mianzi is an interesting study.
A comparative study of the Chinese perspective of mianzi with the concept of “brand”.
In my opinion, the West and East use the same concept with different names and sometimes different
context. The West is familiar with the concept of ‘brand’ whereas the Chinese knows mianzi. In fact, the
difference is only between the Chinese concepts and the rest of the world. Other Asian countries like India,
Japan, Singapore and others have always been open to the Western businesses. On the other hand, Chinese
opened their doors to the West quite after the others. The Chinese have always been conservative and aloof
of the rest of the world and hence have had different concepts about doing business with the West. As
mentioned earlier, the rest of the world is well aware of the word brand which is also used to build costumer
loyalty and ultimately grow business around the world.
What is a brand?
A brand is really an emotional connection you have with a product or service. It is essentially so emotional
in fact that one becomes fairly irrational in the way one tries to justify why one is using it. If we take a look
at how we behave as human beings, if we split our brain into a rational and irrational side, brand is what is
operating at the irrational side.
Branding Strategies –
An increasing number of companies see their brand as the platform for running their business. The brand
creates an identity for the product and/or company in the marketplace. It requires the company to think
deeply about its mission, vision, and values. The company has to work hard at developing the image that it
wants customers to have of the offering. The brand must not only convince prospective customers and draw
them to the brand but also be deeply believed in by the employees and other stakeholders of the company.
Let us take Starbucks as a case. If Starbucks needs to earn a reputation in order to sell the best tasting coffee,
its employees need to follow a set of practices which include throwing away any brewed coffee not sold
within two hours of being brewed. We can say that for any brand to work, employees must live the brand
promise. Branding has been one of the most important elements of Starbucks strategy over many years. The
company has invested significantly in creating a standardized look and feel of its stores, merchandise and
food and drinks. The Starbucks logo is also one of the most recognizable logos in the world. The global
expansion strategy has a key objective of recreating the Starbucks experience in every new country the
company enters. This essentially results in a similar kind of experience in its stores, all over the world,
whether it is located in New York, New Mexico, Moscow, Tokyo or Shanghai.
Has globalization influenced branding?
As a matter of fact, yes, globalization describes the very fact that the planet is more interconnected in
production, trade and communication than ever before. It has opened the doors and created opportunities
for businesses to invest and partner with firms and companies across the world. A customer anywhere
within the world is probably going to notice that his clothes are made in China, his ties are made in Italy,
his shoes are made in Brazil, and his cars are made in Japan. Each country of origin carries a picture of
quality and performance. A car made in Germany is preferred over a car made in Russia; an Italian made
suit carries a stronger image than a Greek suit. Certain global brands carry a weight that is attached to the
brand name: Coca Cola, Apple, McDonalds. The competition is majorly seen between megabrands like
Coca Cola vs. Pepsi.
Globalization has an influence with the way that way one simply lives their life. In our world, releasing a
brand within the local area is only about creating and hoping for the best. From day one we are forced to
think about a global approach. It becomes necessary to think across religions, cultures, and other dimensions
one would never have thought about in the past. This means that no local brands are ever born, every brand
born on a global scale from day one. This means we get a really different looking brand, but we see products
and services as well as makes which are extreme niche. Brands which might never have survived before
because their markets were too small, but can now they easily find five consumers in Japan, two in China,
three in Russia then forth for their extraordinarily specialized product.
Is mianzi and brand the same?
Eventually, brand in itself can mean mianzi because it is the face that is important in any business network.
The status or the position is significant in carrying out contracts, investments and collaborations across
countries. Not just creating the brand is important but so is maintaining the position and status in the market.
This is similar to the mianzi which is gaining face is important but maintaining the face is even more
significant.
Common people and the consumers generally look at the brand and are concerned about the quality more
than the cost if we consider people who are willing to pay a certain amount of money in order to get a
premium quality of goods. It is usually believed that branded products are better in quality than the ones
which are unknown. This is the reason why small businesses look for building a ‘face’ in the market to
survive the competition with the larger businesses. I understand that the brand is a well-recognized product,
however, it is built after gaining a particular face or mianzi in the society. China also uses mianzi as a way
to influence other countries and increase their soft power in other nations. Chinese have essentially made
their culture and the country itself a brand increasing their power to influence other countries across the
world.
Having said that, when a brand is created and once it has a face or mianzi in the society, people believe in
it and trust the brand. Let us take Cadbury (Dairy milk) worm case, Cadbury is a brand which is well known
in multiple countries all over the world. In 2003, worms were found in a Cadbury bar which has been sold
in India. Subsequently reducing the turnover from 68% to 64% in the year 2004. Cadbury apologized and
took a strategic approach to this issue [Sahay, 2021]. The point made here is despite of this being a serious
case, Cadbury even today makes a sale of INR 6746 crore only in India. That can be said the power of a
brand and once it is created, costumer loyalty plays an important role in building the brand and the face of
it in the world.

G. Novelty of paper
The comparison between the Chinese thought of mianzi and the Western perspective of brand is essentially
the same except the concepts used to explain the two things is different. Mianzi or having a face in the
business market is equally important all over the world in order to sustain in the market and network. A
deep understanding of mianzi and brand is done to get an overview of business in China.

H. Future scope
Future research can be done on the whether the small businesses are affected due to the lack of mianzi they
have in the market or how is it possible for them to build a brand. Research has shown that building guanxi
in the professional network in China is essential to build trust and ultimately for collaborations, however, a
further survey can be done whether it is significant for the West to focus on creating mianzi in order to
engage with the Chinese businesses can be done.
Future study on how Chinese businesses gain and maintain mianzi in order to get costumers and whether it
is a valid and reasonable way to sustain in the market can also be carried out.

I. Conclusion
In conclusion, I would like to mention that China has gone from being an agrarian country to the second
largest economy in the world. Before the opening up of China, they were not aware of the business with
the rest of the world and being a communist and traditional country, have always relied on the philosophies
that have shaped the Chinese society into what it is today.
China has always believed in the value system and the teachings from the history in all aspects of their lives;
business also being one of them. Guanxi and mianzi are terms that originate from Confucian principles,
deeply rooted in the Chinese culture and have a lot of importance in the professional network. To be fair,
making connections and increasing the network is equally important in the rest of the world however
Chinese society is highly influenced by these principles. In the conceptual model, we see that mianzi and
attraction are the independent variables that affect the conformity, favor giving and self-presentation,
renqing being the mediator.
The western culture however gives more importance to the individual orientation in the business whereas
Chinese culture is more relationship driven. By western culture, I basically point out at the rest of the world
and not just the West. Chinese culture has always been a closed community and had different ways of
dealing with the businesses of the other world.
The world has always been in a fix as to how to deal with the Chinese and this paper aims to provide an
insight of the influence of mianzi and guanxi on the professional network. There are certain norms and
etiquettes when it comes to business dealings all around the world and understanding them merely makes
it easier and better to find business partners and invest into business ventures. Therefore, this paper is
written with the intention of making it easier to understand the impact of ‘having’, ‘gaining’, ‘maintaining’,
‘saving’ and ‘losing’ face in the business context. Especially when the West or the rest of the world has to
deal with the Chinese, basically because the researchers and scholars have considerably little knowledge
and an insight into the Chinese society, this can help understand the culture and the idea behind the way
Chinese businesses operate.

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