Face, hierarchy and power distance

Face is a concept of central importance because of its pervasive influence in interpersonal relations among Chinese (Yau 1988). According to Hu (1944), Chinese face can be classified into two types, lian and mian-zi . Lian 'represents the confidence of society in the integrity of ego's moral character, loss of which makes it impossible for him to function properly within the community', while mian-zi 'stands for the kind of prestige that is emphasised. . . a reputation achieved through getting on in life, through success and ostentation'. When lian is lost, the person will feel that he/she can no longer live in the world.

Loss of lian within a guanxiwang as a consequence of opportunistic behaviour means that peers will no longer have confidence in the persons or firms concerned . As a result, their membership within a guanxiwang and in society will be untenable. Therefore, face can be another hostage which minimizes the possibility of opportunistic behaviour within a guanxiwang . This is another reason why guanxiwang cannot merely survive but can also develop in mainland China and overseas Chinese communities.

Mian-zi can also be used to form new guanxiwang. One of Confucius' virtues is to respect authority and the elderly. Someone with authority, often elderly and with a good reputation, can ask favours of others. The person may act as a common agent to start a new exchange relationship. Favours can also be asked between friends. It is an accepted norm that as 'old friends ' one should give face to the other when favour is requested . Once again, it has been shown that the Chinese cultural values such as face, hierarchy, power distance are closely related to the creation and development of the business network.