“Guanxirefers to the establishment of a connection
between two independent individuals to enable a bilateral
flow of personal or social transactions. Both parties must
derive benefits from the transaction to ensure the continua-
tion of such a relationship.”^48 Guanxirelations are based on
reciprocation, unlike Western networked relationships, which
may be characterized more by self-interest. Guanxirelation-
ships are meant to be long-term and enduring, in contrast with the immediate gains
sometimes expected in Western relationships. Guanxialso relies less on institutional law,
and more on personal power and authority, than do Western relationships. Finally, guanxi
relations are governed more by the notion of shame (i.e., external pressures on perform-
ance), while Western relations often rely on guilt (i.e., internal pressures on performance)
to maintain agreements. Guanxiis seen as extremely important for business success in
China—more than such factors as right location, price, or strategy, or product differenti-
ation and quality. For Western firms wanting to do business with Asian firms, an under-
standing of guanxiand an effort to build relationships are important strategic advantages.
Our discussion about differences in cross-cultural values should suggest to you that
understanding other cultures matters. When Canadian firms develop operations across
Canada, south of the border, or overseas, employees need to understand other cultures
in order to work more effectively and get along with others.Generational Differences
In his book Sex in the Snow,pollster Michael Adams attempted to identify the social
values of today’s Canadians.^49 He found that within three broad age groups of adult
Canadians—the Elders (those over 60), Baby Boomers (born between the mid-1940s and
the mid-1960s), and Generation Xers (born between the mid-1960s and the early
1980s)—there are at least 12 quite distinct “value tribes.” We present the age groups
and discuss some of their values in the next few pages. For further information on these
different value tribes and an opportunity to see where you might be classified in terms
of your social values, visit the Environics Research Group website.
In the discussion of values that follows, bear in mind that we present broad general-
izations, and you should certainly avoid stereotyping individuals on the basis of these
generalizations. There are individual differences in values. For instance, not every Baby
Boomer thinks alike, and neither does every member of Generation X. Thus, the impor-
tant point about the values discussion is that you should try to understand how others
might view things differently from you, even when they are exposed to the same situation.The Elders
These individuals are characterized as “playing by the rules,” and their core values are
belief in order, authority, discipline, the Judeo-Christian moral code, and the Golden Rule
(do unto others as you would have others do unto you). About 80 percent of the Elders
resemble this description of traditional values, although there are variations within that
80 percent in the strength of fit.Baby Boomers
The view of Baby Boomers as a somewhat spoiled, hedonistic, rebellious group belies
the four categories of Boomers: autonomous rebels (25 percent), anxious communi-
tarians (20 percent), connected enthusiasts (14 percent), and disengaged Darwinists
(41 percent). So, unlike the Elders, the Boomers are a bit more fragmented in their
views. Yet all but the disengaged Darwinists reflect, to some extent, the stereotypes of this
generation: rejection of authority, skepticism regarding the motives of big business and
government, a strong concern for the environment, and a strong desire for equality in
the workplace and society. Of course, the disengaged Darwinists, the largest single82 Part 1 Understanding the Workplace
What would you
need to know to
set up a business
in Asia?*
Environics Research Group
http://erg.environics.net