Regional differences in the effect of interpersonal relationship on trust and trustworthiness in China

Guanxi, which literally means interpersonal relationship or social connections, plays an important role in achieving business success in China. This study investigates the effect of interpersonal relationship on trust and trustworthiness in four regions in China. Eighty pairs of close friends participated in the experiment: 20 pairs from Beijing, 20 pairs from Guangdong, 20 pairs from Shanghai, and 20 pairs from Chongqing. A cooperation experiment based on a two-tier simulated supply chain was conducted, in which the participant who played as a supplier solicited demand forecast information from the participant who played as a retailer to plan production. Participants were instructed to perform two tasks: one with a "friend" counterpart and one with a "stranger" counterpart. The results demonstrated regional differences in the effects of interpersonal relationship on trust and trustworthiness: the effect of interpersonal relationship was greater in Guangdong than in the other regions. Additionally, a quantified classification of trustworthiness-trust was proposed by clustering analysis. The type of self-protective trustworthiness and altruistic trust occupied an overwhelming majority in each region, followed by the type of altruistic trustworthiness and self-protective trust, the type of altruistic trustworthiness and altruistic trust, and the type of self-protective trustworthiness and self-protective trust. Regional differences in the distribution proportions in the four types were discovered.