Guanxi and innovation in China: insights from the (bio-based) construction sector

This paper explores the role of guanxi in facilitating innovation within the Chinese construction sector. Guanxi, denoting the network of trust-based relationships, is deeply rooted in Chinese culture and orchestrates innovation activities. As the construction sector shifts toward bio-based building materials, understanding how guanxi influences innovation activities becomes crucial for the sector’s sustainability transition. Through qualitative research involving expert interviews, we examine how guanxi varies along the construction value chain, between bio-based and conventional materials, and among Chinese and foreign stakeholders. Our findings reveal that guanxi is particularly important in smaller firms and academic institutions, where personal relationships drive innovation collaborations. In contrast, larger organizations and international partnerships rely more on formal networks and expertise. In bio-based construction, guanxi plays a critical role in accessing resources and knowledge, fostering innovation through established personal networks.