Review: Guanxi

The gist of this book is about how Microsoft started its R&D centre in China, the development and growth of the establishment as well as the people in it, and how it progressed into one of the most important operation in the software company.

The book talks about Guanxi, mutually beneficial relationships, a concept that is very real and important in the business world in China. Guanxi was, and still is, very important for Microsoft when the global software company established its foothold in the country when the government and its people were apprehensive about the “ulterior motive” behind Microsoft’s plan. The company needed to convince the government that the plan of setting up an R&D centre was not just about benefiting the company but the Chinese people and the country as well. Local talents from universities were recruited to form and take charge of the centre.

As the centre grows and huge progresses were made, it became clear that the centre was more important that what many people initially thought regarding how it would benefit Microsoft and China. The growth didn’t only took place in terms of business generated for Microsoft, but also the mutually beneficial relationships, the Guanxi, between Microsoft and the Chinese government, Microsoft and the Chinese people, and the people working in the centre.

It’s nice to read something about the multi-million global company like Microsoft that is not all about business. The human side of the R&D centre, with all its struggles and hardship, make one appreciate how the centre becomes what it is today. However, I have to say that compared to the other global company-related book I read, “How Toyota Became #1”, it was less interesting and I didn’t enjoy how the story ends with one of the key figures in the R&D centre left and joined a competitor company. Yeah, I’m a sucker for happy or satisfying endings. Guanxi’s ending, not so satisfying.