Influence of Chinese entrepreneurs’ cultural intelligence on Guanxi development in foreign countries: moderating roles of cultural characteristics in host nations

Purpose This study aims to explore the impact of cultural intelligence (CQ) among Chinese entrepreneurs on initiating business Guanxi and government Guanxi in foreign countries. This study considers the cultural characteristics of foreign countries, specifically individualism/collectivism, and high/low power distance, as moderators. In addition, this research assesses the influence of business Guanxi and government Guanxi on firm performance. Design/methodology/approach Survey data were collected from 388 Chinese entrepreneurs spanning 39 countries across six continents. The model was analyzed using partial least squares structural equation modeling. Findings The findings indicate that Chinese entrepreneurs with high CQ are inclined to establish business Guanxi less extensively in foreign countries characterized by high levels of individualism than those with high levels of collectivism. Conversely, Chinese entrepreneurs tend to initiate government Guanxi primarily in foreign countries with high power distance, as opposed to those with low power distance. Importantly, this study reveals a positive association between firm performance and business Guanxi, while a negative association exists with government Guanxi. Practical implications Because entrepreneurs play a vital role in driving economic growth, improving employment opportunities and advancing the goals of sustainable development through their international business activities, it is recommended that Chinese entrepreneurs invest in developing CQ as a form of human capital. Enhancing this capability supports stronger cross-cultural relationship-building, which can improve international business performance and organizational productivity. Originality/value This research contributes new evidence, highlighting the cultural characteristics of foreign countries as crucial determinants in shaping the levels of business Guanxi and government Guanxi developed by high CQ entrepreneurs in various regions. Furthermore, this study underscores that, among Chinese firms, only business Guanxi leads to enhanced performance in foreign countries, not government Guanxi.