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Channel: Emerald | International Journal of Contemporary Hospitality Management | Table of Contents
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External entrepreneurs/investors and guanxi: hostels in a tourism area, Xinjiang, China

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Abstract

Purpose - This research aims to explore how entrepreneurs external to the tourist area maintain harmonious guanxi with stakeholders (especially the government) in an ethnic minority area of less-developed Northwestern China. Design/methodology/approach - The paper is derived from a one year ethnographic fieldwork undertaken by the first author in the case area. Findings - This research indicates that ‘external’ entrepreneurs need to find a balance between the standards required by industry associations, bureaucratic arrangements and business practice, and between economic profit and lifestyle within a guanxi dominated society. It may be argued that the continuance of relationships represents (a) the continuance of resources and benefits and (b) the maintenance of social and political capital.Practical implications - One issue in the relationship with local governments is the question, to what degree can politicians influence enterprises’ business? Political guanxi is thus an important key to any understanding of the local political scene. In China, the philosophy that???? (pinyin: yiheweigui – Harmony is most precious), is a strategy often adopted in mediation and operation. Originality/value - Factors including guanxi, entrepreneurs’ operational motivations, a government-directed political system, indigenous people and their culture, and Butler’s TALC model are considered in the discussion. This study expands the knowledge pertaining to hostels in China in relation to their interaction with local governments and locals to maintain a good guanxi. It highlights the multiple dimensions of guanxi in terms of micro-and macro-perspectives with reference to functionality and cultural requirements.

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