Role and Impact of Business to Government (B2G) Guanxi in Bidding of Infrastructure Projects: A Case in China
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 pape
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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 Huo and Minli Zhang
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
B. Zhang School of Economics and Management of Tongji University, Shanghai, China B. Zhang Civil Science and Engineering, Excel in Construction Management and Construction Corruption Prevention, Yangzhou University, Yangzhou, China Z. Huo (&) Civil Science and Engineering, Expert in Construction Management and New Towns, Yangzhou University, Yangzhou, China e-mail: [email protected] M. Zhang Engineering Management Department, Yangzhou University, Yangzhou, China M. Zhang The Real Estate Institute of Yangzhou University, Expert in Real Estate Economy, Construction Economy; College of Civil Science and Engineering, Yangzhou University, Yangzhou, China © Springer Science+Business Media Singapore 2017 Y. Wu et al. (eds.), Proceedings of the 20th International Symposium on Advancement of Construction Management and Real Estate, DOI 10.1007/978-981-10-0855-9_27
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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 triangle model
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Bidding and tendering B2G guanxi Fraud
Introduction
In China, with the increasing emphasis on infrastructure, the current infrastructure investment accounts for 9 % of gross domestic product (GDP) [1]. In the context of rapid development, the number of construction companies has been increasing rapidly. By 2014, there are 81141 construction companies [2]. Facing such a large number of infrastructure investment and such a high competitive market, how to win infrastructure project is the most important thing for each construction company. Cons
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