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Role and Impact of Business to Government (B2G) Guanxi in Bidding of Infrastructure Projects: A Case in China

  • Bing Zhang
  • Zhenggang HuoEmail author
  • Minli Zhang
Conference paper

Abstract

Infrastructure projects in China are dominated by government, its entire bidding and tendering process is subject to administrative control, and B2G (Business to government) guanxi has important implications for bidding and tendering activities. This paper investigated professional staff working in bidding and tendering activities of infrastructure projects through guanxi attitude, guanxi value and its roles. It is revealed that the bidding and tendering activities would be very convenient if having B2G guanxi. What’s more, the bidders could avoid bidding and tendering risks through B2G guanxi. However, the bidders need spend a lot of time, money and energy establishing and maintaining B2G relationship. Establishing B2G guanxi could through family, friend and intermediary three ways, and the bidders would prefer establishing their B2G guanxi among business activities. B2G guanxi has an impact on the bidding and tendering results and the will of bidding and tendering, in each type of infrastructure project bidding and tendering, B2G guanxi is needed. If having B2G guanxi with senior officials, it would further contribute to the successful bidder. Whereas, B2G guanxi violates the principles of fairness and transparency, at last, this paper propose how to foster the competitiveness of construction enterprises and culturing professional ethics to ensure B2G guanxi in a healthy way.

Keywords

Infrastructure projects Bidding and tendering B2G guanxi Fraud triangle model 

Notes

Acknowledgements

This research was funded by the National Natural Science Foundation of China (Grant Nos. 71172107 and 71390523).

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Copyright information

© Springer Science+Business Media Singapore 2017

Authors and Affiliations

  1. 1.School of Economics and Management of Tongji UniversityShanghaiChina
  2. 2.Civil Science and Engineering, Excel in Construction Management and Construction Corruption PreventionYangzhou UniversityYangzhouChina
  3. 3.Civil Science and Engineering, Expert in Construction Management and New TownsYangzhou UniversityYangzhouChina
  4. 4.Engineering Management DepartmentYangzhou UniversityYangzhouChina
  5. 5.The Real Estate Institute of Yangzhou University, Expert in Real Estate Economy, Construction Economy; College of Civil Science and EngineeringYangzhou UniversityYangzhouChina

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