To Be Or Not To Be？Paradox Of Guanxi In Creating A Sustainable Entrepreneurial Ecosystem

Abstract

The role of Chinese indigenous culture in the sustainability of the entrepreneurial ecosystem remains underexplored. Drawing upon social network theory, this study examines the unique entrepreneurial culture of guanxi across different temporal dimensions within the Chinese entrepreneurial ecosystem. We propose that the impact of guanxi on the entrepreneurial ecosystem is inconsistent across stages. In early phases, guanxi may facilitate collaboration among participants, but in mature stages, it might lead to a shift in entrepreneurial culture towards competition and conservatism. Such disparities can divert participants who emphasize guanxi away from their original intent of value creation, thereby weakening the social network of guanxi in the circulation of resources, information, and knowledge, potentially leading to the decline of the Entrepreneurial Ecosystem. Furthermore, we analyze the limitations of this study. We hope that our discussion on these issues will spur researchers to explore the governance contradictions of guanxi in different stages of the entrepreneurial ecosystem in China, promoting sustainable development of this framework. More importantly, the governance contradictions of guanxi across various time periods may provoke discussions on the limitations of applying social network theory in the field of entrepreneurship.