Mixed Perceptions of Business-to-Government Guanxi in Tendering and Bidding for Infrastructure Projects in China
Publication: Journal of Professional Issues in Engineering Education and Practice
Volume 143, Issue 4
Abstract
Guanxi is the Chinese word for personal relationships or connections. Infrastructure project procurement in China is dominated by the government, and the entire tendering and bidding process is subject to administrative control in which business-to-government (B2G) guanxi is thought to have a significant impact. To date, however, little is known of its impact and perception in infrastructure procurement. This paper aims to bridge this research gap through a questionnaire survey of 149 contractors’ and consultants’ perceptions of B2G guanxi in terms of its importance, mode of establishment, and impact on infrastructure bidding in China’s eastern coastal cities. The results indicate that over half of the respondents surveyed consider B2G guanxi to have important benefits for current practice whereas others hold different perceptions. Four groups of perspectives are identified by K-means cluster analysis, ranging from a low/moderate perception of B2G guanxi (48%) to passive-high/positive-high (52%). A chi-square test suggests the differences between groups is attributable to the types of organizations involved, with contractors and quantity surveying consultant organizations placing significantly more emphasis on the benefits and establishment of B2G guanxi. Finally, the current informal tendering and bidding processes in China are questioned as a contributing factor and suggestions are made for increased government and legislative intervention, leading to a greater emphasis by bidders on improving their technical and management capacity in order to develop their competitive advantage in the market.
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Acknowledgments
This research has been funded by the National Natural Science Foundation of China (Grant Nos. 71172107 and 71390523) and the Philosophy and Social Science Research in Colleges and Universities of Jiangsu Province (2016SJB630101). Special gratitude is also extended to the contractors and consultants who took part in the interviews and questionnaire survey.
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Journal of Professional Issues in Engineering Education and Practice
Volume 143 • Issue 4 • October 2017
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©2017 American Society of Civil Engineers.
History
Received: Sep 9, 2015
Accepted: Oct 27, 2016
Published online: Feb 6, 2017
Discussion open until: Jul 6, 2017
Published in print: Oct 1, 2017
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