Information & Management 44 (2007) 165–174

www.elsevier.com/locate/im

An empirical investigation of socio-cultural factors of

information sharing in China
Seung Kyoon Shin a,*, Michael Ishman b,1, G. Lawrence Sanders c,2
a
College of Business Administration, University of Rhode Island, Kingston, RI 02881, United States
b
Department of Commerce, College of Business Administration, Niagara University, NY 14109, United States
c
Department of Management Science and Systems, State University of New York at Buffalo, Buffalo, NY 14260, United States
Received 26 August 2005; received in revised form 27 October 2006; accepted 15 November 2006
Available online 12 January 2007

Abstract
Understanding information sharing is an important challenge to modern organizations, and is likely to be increasingly
considered when IT investment decisions are made world-wide. Our research study investigated the influence of cultural factors on
information sharing in China. It was postulated that social network structures such as guanxi, Confucian dynamism, and
collectivism could explain the degree to which information sharing took place between people in China. It was found that
guanxi, Confucian dynamism, and collectivism all had a significant influence on information sharing.
# 2007 Elsevier B.V. All rights reserved.

Keywords: Information sharing; China; Culture; Collectivism; Confucian dynamism; Guanxi

1. Introduction In some local cultures, such as highly competitive

Technologies, such as intranets, extranets, and the
Internet, have substantially increased the potential for
information sharing within and between organizations
and enhanced firm efficiency. The phenomenon of
information sharing, however, is usually associated with
cultural factors beyond information technology. An
understanding of information sharing across cultures is
still a major challenge and is likely to be more important
as global systems are developed.
* Corresponding author. Tel.: +1 401 874 5543;
fax: +1 401 874 4312.
E-mail addresses: shin@uri.edu (S.K. Shin), ishman@niagara.edu
(M. Ishman), mgtsand@buffalo.edu (G.L. Sanders).
1
Tel.: +1 716 286 8208; fax: +1 716 286 8206.
2
Tel.: +1 716 645 2373; fax: +1 716 645 6117.
organizations having trade secrets, information sharing
is highly controlled because of fear of industrial
espionage, diversion of people’s attention from their
work, and role conflict. Cultural differences may affect
individual or organizational attitudes towards sharing
information. Our study explored information sharing in
China, where socioeconomic background and family
origin are important factors in interpersonal relations;
indeed, relationships depend on the idea of guanxi, the
existence of direct particularistic ties between people
[40].
China’s economy has experienced phenomenal
growth over the past two decades. It has become an
economic giant among the nations of the world, and has
recently grown to become one of the largest consumer
economies in the world. However, the problems that
Western businesses have had in doing business with
China is challenging for Western businesses due to their

0378-7206/$ – see front matter # 2007 Elsevier B.V. All rights reserved.
doi:10.1016/j.im.2006.11.004
166 S.K. Shin et al. / Information & Management 44 (2007) 165–174
lack understanding of cultural barriers. Although the
Chinese have changed over the past few decades,
traditional socio-cultural values have remained a major
influence [3] and while American and European
businesses have acknowledge the importance of guanxi,
many still do not fully understand the meaning and
subtle forms that it can take. We therefore decided to
investigate the influence of guanxi on information
sharing with internal and external groups as well as two
other cultural factors that were postulated to have an
influence on information sharing in China.
2. Theoretical framework
2.1. Culture
Culture becomes important in a global environment
where members of organizations come from more than
one nationality. It has been defined as the ‘‘collective
programming of the mind’’ that differentiates people of
different societies [12]. Hofstede [11] delineated four
dimensions of national culture: power distance,
individualism–collectivism, masculinity–femininity,
and uncertainty avoidance. These dimensions were
distilled from a seminal study involving more than
120,000 respondents from more than 50 countries.
Cultural differences between members of different
nations and societies were found to be stable over the
years. In addition, Confucian dynamism3 was identified
as an important variable in a study by The Chinese
Culture Connection.
Scholars in social psychology and management have
successfully used these dimensions to account for
empirical observations [38]. In the field of information
systems, Straub et al. [33] used uncertainty avoidance to
explain why the diffusion of IT differed in the United
States and Japan. Watson et al. [44] used individualism–
collectivism to account for differences in the way group
support systems affected group decisions in the United
State and Singapore. Hence, individualism–collectivism
has not only been shown to have useful explanatory
power but also to be a factor in information sharing.
We postulate that a unique factor in Chinese culture,
guanxi, has a strong impact on information sharing. The
word guanxi refers to the concept of drawing on
connections in order to secure favors in personal
relationships [21]. Tsui and Farh examined the relation-
ship between it and relational demography, and
suggested that the two ideas were conceptually related
3
Hofstede used the more global term ‘‘Long-term Orientation’’.
but not equivalent. In business settings, guanxi has been
found to have four variables describing business
practices: intermediary, social investment, back door,
and mutual trust [6]. It has been shown to have a direct
impact on market expansion and sales growth of
Chinese firms by affecting resource sharing and social,
economic, and political contexts in inter-firm transac-
tions [15]. Some view guanxi as simple corruption,
while others argue that it can be a legitimate alternatives
to the western free market systems [19].
2.2. Social network theory
A central idea in social network theory [18] explains
the differences of information exchange based on the
strength of relationships between the two parties. In
essence, the development of strong ties based on mutual
trust is a function of the resources employed, including
the amount of time, the level emotional intensity,
mutual intimacy, and reciprocal services. In a compar-
ison of strong and weak ties, Freeman [8] considered
strong ties as those in which individuals were closely
affiliated, while weak ties had less intimate connections.
The theory of social networks posits that the
efficiency of information transmission depends on the
strength of the ties between people. Thus, strong ties
offers two primary advantages: they involve the
exchange of high-quality information and knowledge
and they operate as part of a social control mechanism
that normalizes partnership behavior.
2.3. Interdependence theory
Interdependence theory [16] was originally formu-
lated by Kelley and Thibaut in 1959. It has been applied
in the study of a wide range of dyadic and inter-group
phenomena such as bargaining behavior, conflict
resolution, and the evolution of relationships. The
theory implies that the stronger the cultural context in
support of friendship, altruistic attitudes, good citizen-
ship norms, and polite behavior, the more likely it is that
an individual will willingly share personal resources. In
information sharing between two individuals acting
alone, rational self-interest and simple reciprocity
theoretically predict behavior. The resulting behavior
would be that A helps B if B helps A, and A withholds
help if B acts destructively. However, the reciprocation
of negative behavior does not necessarily happen when
there are strong social norms supporting the harmony of
society. Thus, those who are future-oriented and tend to
enjoy social harmony should show a greater willingness
to participate in information sharing.
 S.K. Shin et al. / Information & Management 44 (2007) 165–174
3. Model development
Our model of information sharing was based on the
theory of communicative action [10], which refers to
the interactions involving speech and actions that relate
to the establishment of interpersonal relationships. One
of the central concepts of communicative action is that
it situates information sharing behavior within a
hierarchy of resources in the context of social norms
and cultural values. In addition, the theory offers
explanations of people’s information sharing behavior
when people share information to achieve organiza-
tional goals.
According to the theory, information sharing can be
explained in terms of three domains: person, culture,
and society. These together form the setting that
provides an information sharing context. In many
contexts, the behavior is anchored in the individual’s
social responsibility to prove the validity of their claims.
In addition, these claims may be based on the social/
group norms of the context. That is, cultural factors and
social relationship may influence the people’s informa-
tion sharing behavior in a variety of settings. Te’eni [34]
presented a simplified form of the theory of commu-
nicative action to illustrate how domains constitute a
communication setting (Fig. 1). Goals, values, and
norms are the corresponding products of the four
communication domains.
In our study, information was viewed as a resource
that could be shared among members of a social group,
and information sharing as a societal behavior to share
resources. Te’eni defined cultural values as the stock of
knowledge that guided behavior of communicators
belonging to that culture. He viewed individualism–
collectivism as a major cultural dimension for explain-
ing similarities and differences in communicative
behavior. In addition, Confucian dynamism was
investigated as a cultural factor that influenced
information sharing. In this context, guanxi was thus
viewed as a strong societal relationship involving
mutual trust-based relationship that influenced informa-
tion sharing in China.
Fig. 1. A simplified view of the theory of communicative action.
167
3.1. Model of information sharing and cultural
factors
Information sharing is the extent to which critical or
proprietary information is communicated to one’s
partner [22]. From a comprehensive perspective,
researchers extended this definition to sharing and
transferring information within/across the structure of
an organization, focusing on providing a context for
efficient sharing of this valuable intangible capital
[41,43]. Today’s organizations generally have policies
and methods that encourage employees to help others
and share information [1]. Western researchers have
concluded that increased information sharing could
improve organizational efficiency, learning, innovation,
flexibility, and understanding of organizational goals
[42]. Indeed, information exchange and communica-
tions are heavily influenced by an individual’s relation-
ships with others [26].
A key challenge has been in transferring information
from the source to the locale where it was needed and
used. Some organizations discourage information
sharing because there are cultural disturbances due to
the distance between individuals and also due to
environmental and societal distrust [9].
We therefore posited that three cultural factors
(guanxi, collectivism, and Confucian dynamism) had
positive influences on information sharing in China. A
research model including the three cultural factors is
presented in Fig. 2. We further investigated the
influences of the factors on information sharing in
two disparate contexts: in-group information sharing
where the sharing takes place across internal organiza-
tional boundaries beyond the peer-to-peer sharing, and
external sharing, in which sharing occurs with familiar
and trusted business partners.
3.2. Guanxi: a strong tie social network
Guanxi refers to personal and interpersonal rela-
tionships and places high values on social networks,
trust, commitment, favor, mutuality, reciprocity and
Fig. 2. Model of information sharing and cultural factors.
168 S.K. Shin et al. / Information & Management 44 (2007) 165–174
long-term benefits [46]. It has been regarded as the
lifeblood of personal relationships and business
conduct in Chinese society [14] and requires implicit
mutual obligation, assurance and understanding. Thus,
guanxi is more than an interpersonal relationship or
friendship; it is a mutual obligation to respond to
requests for assistance [39]. This type of relationship
leads to the development of strong ties social networks
among people based on trust and guanxi and has
played a critical role in organizational performance in
China.
In an organizational context, a guanxi-based network
is part of an organization’s core competency and
provides competitive advantage [20]. In the rapidly
changing economic and social environment of China,
guanxi has become even more entrenched with strong
and direct implications for business practices [27].
Understanding and applying the notion of guanxi is
necessary if western firms wish to be successful when
engaging in business in China.
Sharing information through guanxi often follows
successful transactions: intimate relationships result
from frequent information exchanges among partners
[17]. Guanxi provides a valuable entrepreneurial tool to
bridge gaps in information flows between unlinked
firms and between firms and important outside
stakeholders: firms develop guanxi to broker structural
holes and alter the existing network.
For any two individuals to develop guanxi, they must
be well acquainted and participate in some sharing as
part of a so-called good deal. Guanxi develops between
persons who are strongly tied [2] and it plays a more
prominent role in influencing behavior than does role
obligation and friendship. Information in China often
flows through guanxi because it is the most important
social network. It is the strength of ties that are
particularly important when people pass information
across organizational barriers [32].
A person who refuses to return a favor and does not
follow the rules of reciprocity is viewed as untrust-
worthy. However, exchanges often favor the weaker
partner. At the individual level, a guanxi network often
links people across uneven ranks, with the weaker party
calling for special favors without an equal level of
reciprocal obligation. The situation can be theoretically
explained by interdependency theory. Based on the
strong tendency of people in China towards reciproca-
tion and to freely share their resources, we hypothe-
sized.
Hypothesis 1. Attitude toward guanxi will positively
influence attitude toward information sharing.
3.3. Collectivism
Individualism–collectivism has been identified by
many researchers as the most important dimension of
cross-cultural psychology and is consistently featured in
cross-cultural studies. Collectivism is the degree to
which people prefer to act as members of groups rather
than as individuals. Collectivism has been used to
explain why people are more willing to adhere to group
norms in their country rather than others [5].
In a collectivistic society, people favor and maintain
harmony and relationship. Thus, collectivism has been
viewed as the subordination of personal goals to those
of the group with an emphasis on sharing and harmony
[23]; this is the in-group, which includes family, friends,
or work associates. A collectivistic culture consists of
people integrated into cohesive groups with strong ties
and thus they base their self-understanding on the
reactions of others.
Members of collectivist cultures show great concern
for the welfare of in-group members but relative apathy
to outsiders’ needs [37]. This attitude has roots in
benevolence and conformity. Benevolence focuses on
the concern for the welfare of close others in everyday
interaction. People in a high-benevolence group there-
fore tend to share their information and resources.
Conformity is derived from the requirement that
individuals inhibit inclinations that might be socially
disruptive. According to the interdependence theory, the
stronger the cultural context supporting friendship and
polite behavior (or altruistic attitudes), the more likely it
is that an individual will willingly share resources. We,
therefore, hypothesize:
Hypothesis 2. There is a positive relationship between
collectivism and attitude toward information sharing.
3.4. Confucian dynamism: a cultural dimension
Confucian dynamism [30] emphasizes work ethics
and the enjoyment of prestige without the loss of face
and the saving of others’ face. It is the degree to which
an individual associates with such values as persistence,
ordering relationships by status, thrift, and having a
sense of shame [13]. Confucian dynamism identifies a
core set of values which include time orientation, and is
partially related to the work of Confucius. However,
Robertson found that, in the U.S., Confucian dynamism
is related to other cultural dimensions.
Ralston et al. [29] found three sub-dimensions of
Confucian dynamism, based on Schwartz’s work:
societal harmony, virtuous interpersonal behavior,
and interpersonal harmony. Many values are related
 S.K. Shin et al. / Information & Management 44 (2007) 165–174
to social harmony and supporting people. As such,
individuals from higher Confucian dynamism societies
tend to social harmony and exhibit a greater willingness
to share information.
The stronger the cultural context in support of
friendship and polite behavior, altruistic attitudes, and
of good citizenship norms, the more likely it is that an
individual will willingly share individual resources.
Thus, people from a high Confucian dynamism society
should be more willing to share information with other
members of the group. Also, people are more likely to
share information when he or she wishes for good
outcomes not only for himself or herself but also for
others. Thus we should find that people are more willing
to share information when they are happier with their
coworkers and with the organization.
Murnighan et al. [24] argued that willingness to
share information should be greater under conditions
that increase social concern for the information seeker:
i.e., helping people and social harmony in Confucian
dynamism. As an expression of self-consistency,
sharing information may result in personal benefits
such as heightening of self-esteem and pride, increased
self-efficacy, increased personal identification with
coworkers or the work group, more respect from others
and a better reputation, and reduced alienation or
stronger feelings of commitment. Thus, our third
hypothesis was:
Hypothesis 3. There is a positive relationship between
Confucian dynamism and attitude toward information
sharing.
4. Methodology
4.1. Operationalization of research constructs
The data was collected using a survey technique.
Whenever possible, appropriate scales with good
psychometric properties were used. For the remaining
constructs, sets of items were generated based on
reviews of previous relevant literature.
A short form of Confucian dynamism measure
developed by The Chinese Culture Connection [35] was
used to assess Confucian dynamism of respondents. Six
items from the Schwartz’s Value Survey were used to
measure collectivism of respondents [31]. After
conducting a pilot test, the scale was modified to
include only six items: three for benevolence (honest,
loyal, and true friendship), and three for conformity
(self-discipline, politeness, and honoring of parents and
elders).
169
Park and Luo [27] argue that guanxi plays an
important role in information sharing with the business
community and the government authorities. Based on
prior studies, a seven-item scale was developed to
measure the attitude toward information sharing among
individuals in a work group (in-group information
sharing), and with business partners (external informa-
tion sharing). Guanxi within the business community
and with the government authorities constitute a
multifaceted construct. The former consists of hor-
izontal connections with buyers, suppliers, and compe-
titors, while the latter includes vertical connections with
political governments, industrial departments, and other
regulatory authorities, such as taxation bureaus, banks,
and commercial administration bureaus. As such, the
scale was developed to measure information sharing
with in-group members and external business partners,
respectively. Finally, a four-item scale assessing
individual managers’ perception of guanxi was devel-
oped, based on a review of existing measures in the
literature. All of the measures are presented in
Appendix A.
Assessment of the research model was conducted
using the Partial Least Squares (PLS), which is a good
approach because of the minimal demands on measure-
ment scales, sample size, and residual distributions [45].
PLS helps in screening out factors that have a negligible
effect on the dependent variables. As this study involved
new scales, an additional benefit of PLS was its ability
to assess both measurement and research models at the
same time [36].
4.2. Research setting and sample
Data collection took place in the People’s Republic
of China. A preliminary pilot study questionnaire was
administered to 31 Chinese managers studying in an
English language Executive MBA program. The
resulting data were analyzed and used to modify the
questionnaire items for the full study. These subjects
were excluded from later analysis.
The main study involved administrating the vali-
dated survey to 140 high-level managers, general
managers, and deputy general mangers. The age of the
respondents ranged from 27 to 48 years with an average
of 35.6 years. 69.1% of subjects were engaged in
organization management or employed in managerial
positions. Average work experience for the subjects was
just over 13 years, and they had spent about 7 years on
average with their current employer. They represented
all functional areas of business and a broad range of
industries, including manufacturing, services, retailing,
170 S.K. Shin et al. / Information & Management 44 (2007) 165–174

Table 1
Demographics
Variable Mean (S.D.) Valid N
Age 36 years (4) 27–48 years 135
Gender Male: 79%; female: 21% 139
Total work experience 13 years (5) 2–33 years 139
Work experience with current organization 7 years (5) 1–25 years 139
Employees in work group 45 (121) 2–1000 137
Employees in organization 8772 (2361) 2–132,000 136
Private company 14% 139
Family ownership 2% 139

Table 2
Factor analysis
Guanxi Confucian dynamism Collectivism
Item Loading Weight Item Loading Weight Item Loading Weight
G1 0.652 0.185 D1 0.861 0.395 C1 0.709 0.283
G2 0.815 0.518 D2 0.807 0.226 C2 0.691 0.141
G3 0.731 0.340 D3 0.812 0.229 C3 0.763 0.332
G4 0.698 0.298 D4 0.608 0.124 C4 0.705 0.218
C5 0.718 0.242
C6 0.650 0.188

wholesaling, healthcare, education/research, commu- indicated that more than half of the variance of the
nications, advertising, and retailing. Approximately indicators could be accounted for by the latent variables.
79% of the subjects were male, and 21% were female. The AVE can also be used to assess discriminant
The demographics for this sample are presented in validity. They should be greater than the square of the
Table 1. correlations among the constructs; that is, the amount of
variance shared between a latent variable and its block
5. Results of indicators should be greater than the shared variance
between the latent variables. Table 4 shows the
5.1. Measurement model assessment intercorrelations of constructs and variance shared
between the latent variables and their indicators. The
Table 2 reports the result of factor analysis with all diagonal elements of Table 4 are the square root of the
independent variables. While some measures showed AVE.
some weak loadings, they were adequate for an
exploratory study (>0.6) [4]. The factor loadings of Table 3
Confucian dynamism were essentially consistent with Composite reliability (CR) and Average Variance Extracted (AVE)
the Chinese Culture Connection study. Construct CR a AVEb Cronbach’s a
The reliabilities of all multi-item scales were above
the 0.7 level, which is generally deemed sufficient for Guanxi 0.858 0.606 0.784
Confucian dynamism 0.899 0.601 0.871
field work [25]. The internal consistency reliabilities and Collectivism 0.857 0.500 0.801
Cronbach’s a for all constructs were greater than 0.7 (see Group information sharing N/A N/A 0.730c
Table 3). The Average Variance Extracted (AVE) was External information sharing N/A N/A 0.877c
also calculated. This measures the variance that a a
CR = (Sli)2/[(Sli)2 + Sivar(ei)]: li is the component loading to an
construct captures from its indicators relative to the 2
Pi Þ ¼ 1  li .
indicator and varðe
variance contained in measurement error. This statistic is b l 2
AVE ¼ P l2 þPi varðe Þ.
generally interpreted as a measure of reliability for the c
i i i
Cronbach’s a of information sharing was calculated based on the
construct and as a means of evaluating discriminant response of three items regarding information sharing. CR and AVE
validity [7]. All AVEs for the constructs in our study were for information sharing are not available because the mean values of
greater than or approximately equal to 0.50. This the items were used.
 S.K. Shin et al. / Information & Management 44 (2007) 165–174
Table 4
Average Variances Extracted and correlations of latent variables
Guanxi Collectivism Confucian Information
dynamism sharing
Guanxi (0.727)
Collectivism 0.002 (0.707)
Confucian 0.066 0.225 (0.778)
dynamism
Information 0.471 0.217 0.212 N/A
sharing
This showed that the square roots of each AVE value
were greater than the off-diagonal elements. The
measurement model thus had a reasonable degree of
discriminant validity among all of the constructs.
Correlation coefficients among all three antecedents
were low, thus illustrating that the three variables were
statistically independent. The results of measurement
analysis also showed that all the constructs and
measures had acceptable reliability and validity.
5.2. Structural model assessment
With an adequate measurement model, the hypoth-
eses were tested by examining the structural model. The
R2 value was used to assess the proportion of variance in
the endogenous constructs that could be explained by
the antecedent constructs. Approximately 29% of the
variance in information sharing was explained by the
three cultural factors, making interpretation of the path
coefficients meaningful.
All hypotheses in the research model were statis-
tically supported. The results also confirmed that guanxi
is one of the most influential cultural factors affecting
information sharing in the Chinese business environ-
ment (b = 0.46, p < 0.001). Confucian dynamism, on
the other hand, appeared to have relatively less effect
(b = 0.14, p < 0.05).
The path coefficients from the PLS analysis are shown
in Fig. 3. The coefficients in the model represent
standardized regression coefficients. The suggested
Fig. 3. The research model with path coefficients and R2 value.
*
p < 0.05; *p < 0.001 (two-tailed test).
171
Fig. 4. External information sharing. *p < 0.05 (two-tailed test).
lower limit of them for regression coefficients is 0.05
[28]. In a more conservative position, path coefficients of
0.10 and above are preferable. All hypotheses were
supported. Guanxi (H1), collectivism (H2), and Con-
fucian dynamism (H3) were shown to exert a significant
positive influence on in-group information sharing. After
computing path estimates in the structural model, the
PLS software was used to perform jackknifing to obtain
the corresponding T-values. Support for each hypothesis
can be determined by examining the sign (positive or
negative) and the statistical significance for the T-value
for its corresponding path. All hypotheses were accepted
with a significance level of either 0.001 (guanxi and
collectivism) or 0.05 (Confucian dynamism).
5.3. Guanxi and external information sharing
The influence of guanxi on external information
sharing was also investigated (see Fig. 4). The R2 for the
research model using external information sharing was
0.035. It is notable that the results were quite different
from those for in-group information sharing
(R2 = 0.29). Although guanxi still showed a statistically
significant impact on external information sharing
(b = 0.14, p < 0.5), the other cultural factors (collecti-
vism and Confucian dynamism) did not show sig-
nificant causal relationship with the dependant variable.
6. Discussion and concluding remarks
We investigated the impacts of three cultural factors
on information sharing and concluded that all three
(guanxi, collectivism, and Confucian dynamism)
influenced information sharing within the organiza-
tional boundary. However guanxi had a stronger impact
on in-group than on external information sharing. This
is not surprising; according to social network theory,
interpersonal ties based on transmitting work informa-
tion, advice, and friendship are less successful with
external social groups.
However, guanxi was the only statistically meaningful
factor that operated across group boundaries, having a
172 S.K. Shin et al. / Information & Management 44 (2007) 165–174
moderate influence on external information sharing.
Enormous opportunities for improved efficiency,
increased flexibility, and timeliness can be realized by
the free sharing of information in a supply chain.
However, this same information can be used to exploit the
party that provides the information, for example, by
demanding lower prices when the supplier has found
ways to reduce costs. Thus, information sharing requires
that an atmosphere of ‘‘trust’’ be created. The results,
therefore, showed that guanxi plays a particularly
critical role in both in-group and external information
sharing.
Collectivism had a direct influence on in-group
information sharing but not with an external organiza-
tion, consistent with cultural studies. Triandis et al.
argued that collectivists were willing to self-sacrifice for
their in-group but not for outsides. Confucian dynamism
appears to have even less effect on in-group information
sharing. The Confucian spirit has possibly been diluted to
such an extent that the younger generation knows little
about or is not influenced by Confucian dynamism, as per
Ralston et al., who compared today’s to previous
generations of Chinese managers.
The findings of our study should be important to
managers for several reasons. First, executives and
managers involved in commerce with Chinese firms
need a deeper understanding of how their own value sets
diverge from those of their business partners. Western
business people are faced with an urgent need to adapt
to and operate within non-western systems. Insufficient
understanding of culture can become a barrier to
understanding social relationships and lack of under-
standing can lead to business failure. The bottom line is
that foreign companies will be more successful if they
understand how to use Guanxi to develop business
relationship in China.
A trust-based relationship between two parties is an
enabler of information sharing; information systems,
therefore, should be designed to foster sharing of
proprietary information through peer-to-peer commu-
nication that facilitates trust. In addition, Confucian
dynamism was found to have a positive impact on in-
group information sharing.
Appendix A. Questionnaire items
Guanxi: seven-point scale with steps varying from ‘‘Strongly
Disagree’’ to ‘‘Strongly Agree’’
G1 Guanxi plays an important role in the sharing of information
within my organization
G2 Guanxi plays an important role in the sharing of information
between my organization and other organizations
Appendix A (Continued )
G3 I am familiar with the term guanxi
G4 Foreign companies would be more successful in my
country if they understood how to use Guanxi to
develop business relationships
Confucian dynamism: nine-point scale with steps varying from
‘‘No Importance’’ to ‘‘Great Importance’’
D1 Ordering relationships by status and observing this order
D2 Thrift
D3 Persistence (perseverance)
D4 Having a sense of shame
Collectivism: eight-point scale with steps varying from
‘‘No Importance’’ to ‘‘Great Importance’’
C1 Politeness (courtesy, good manners)
C2 Self-discipline (self-restraint, resistance to temptation)
C3 True friendship (close, supportive friends)
C4 Loyal (faithful to my friends, group)
C5 Honoring of parents and elders (showing respect)
C6 Honest (genuine, sincere)
In-group information sharing: seven-point scale with steps
varying from ‘‘Strongly Disagree’’ to ‘‘Strongly Agree’’
I1 I am willing to share information that I control with other
members of my work group
I2 I am willing to share information that I control with
members of other work groups within my organization
I3 Information held by work groups should be shared with
other work groups within the same organization
External information sharing: seven-point scale with steps
varying from ‘‘Strongly Disagree’’ to ‘‘Strongly Agree’’
E1 Shares information with suppliers
E2 Shares information with wholesalers
E3 Shares information with retailers
E4 Shares information with government agencies
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Seung Kyoon Shin received his MBA and PhD in business with a
concentration in management information systems from the State
University of New York at Buffalo. He is an assistant professor of
information systems in the College of Business Administration at the
University of Rhode Island. Prior to joining academia, he worked in
industry as a software specialist, IS project manager, and system
integration consultant. His research has been published in journals
174 S.K. Shin et al. / Information & Management 44 (2007) 165–174
such as Communications of the ACM, IEEE Transactions on Engi-
neering Management, Information and Management, Decision Sup-
port Systems, and International Journal of Operation & Production
Management. His current research interests include IT investment,
web-based knowledge management & transfer, strategic database
design for data warehousing and data mining, web-based information
systems success, and economic and cultural issues related to informa-
tion systems. Dr. Shin is a member of Association for Information
Systems and the Beta Gamma Sigma honor society.
Michael D. Ishman received his PhD in management information
systems in 1995 from the State University of New York at Buffalo. He
also has a minor in the areas of general management studies and
statistics. Prior to his graduate education he was a supply corp. officer
with the U.S. Navy Department for 21 years. His current research
interests include those problems facing managers in implementing
information systems in a global environment, MIS applications in
supply chain management and the analysis of various statistical
approaches in MIS research. While Dr. Ishman plans on retiring this
coming year, he will remaining involved in the field of MIS through
teaching part-time at the graduate level and assisting his colleagues at
Niagara University in their research efforts.
G. Lawrence Sanders, PhD, is professor and chair of the Department
of Management Science and Systems in the School of Management at
the State University of New York at Buffalo. He has taught MBA
courses in the Peoples Republic of China and Singapore. His research
interests are in the ethics and economics of digital piracy, systems
success measurement, cross-cultural implementation research, and
systems development. He has published papers in outlets such as The
Journal of Management Information Systems, The Journal of Busi-
ness, MIS Quarterly, Information Systems Research, the Journal of
Strategic Information Systems, the Journal of Management Systems,
Decision Support Systems, Database Programming and Design, and
Decision Sciences. He has also published a book on database design
and co-edited two other books.