Internationalization of Guanxi from China to Africa

Abstract

PurposeThis study focuses on the use of guanxi by African returnees from China in Africa. It explains how returnees understood and leveraged guanxi to collaborate with Chinese partners.Design/methodology/approachThis study uses semi-structured interviews to document how guanxi is increasingly extending beyond Chinese borders. It focuses on Ethiopia, Kenya and Tanzania and analyzes the returnees' mobilization of guanxi in Sino–African business contexts.FindingsAfrican returnees play an increasingly important role in guanxi internationalization in Africa. Returnees' understanding of guanxi is shaped by their African traditions and their Chinese experiences, creating their new cultural capital and a dynamic Sino–African business mindset.Originality/valueThis paper reveals an emerging shift in the business mindset among African returnees once initiated in guanxi. In addition, guanxi is increasingly practiced by African organizations.