One possible consequence of guanxi for an insider: how to obtain and maintain it?

Purpose - The purpose of this paper is to determine a model of how a foreign businessman obtains and maintains cronyism from his Chinese counterpart that emphasizes on an insider perspective to convert him from a new friend to an old friend of his Chinese counterpart through a guanxi adaptation mechanism. Design/methodology/approach - A vigorous analysis of extant literature and an investigation of insider dynamics within a new friend/old friend perspective. Findings - Gift-giving is strategic and a foreign businessman must manage its monetary value very cautiously in order to alleviate the `face" and provide renqing so as to generate ganging and to obtain cronyism from his Chinese counterpart. In saying that, relativism prevails. A foreign company must establish a zone of ethical tolerance so that its executive knows the limits when practicing gift-giving. In China, an old friend is a supporter and therefore a foreign business should not openly criticize his Chinese counterpart. Frequent visits to China must be maintained. Practical implications - A foreign businessman needs to understand the guanxi dynamics of renqing and ganging and their sequential arrangement in the adaptation mechanism. He should use gift-giving to offer renqing so as to establish ganging with his Chinese counterparts. Originality/value - Provides a depth analysis of two emotional aspects in the guanxi adaptation mechanism, i.e. renqing and ganging which is a definitive device to convert a foreign businessman from a new friend to an old friend of his counterpart in the Chinese market. [ABSTRACT FROM AUTHOR]