Examining the Positive and Negative Effects of Guanxi Practices
Asia Pacific Journal of Management 2011, 28: 715-735
Vanderbilt Owen Graduate School of Management Research Paper No. 2071329
22 Pages Posted: 31 May 2012 Last revised: 7 Feb 2013
Date Written: 2009
Abstract
In this research, we compared and contrasted the effects of managers’ interpersonal level guanxi practice and group level guanxi practice on employees’ procedural justice perceptions. Results indicated that interpersonal guanxi practice was associated with increased employee fairness perceptions whereas group level guanxi practice (the sense that guanxi is used often to make human resource decisions within a management group) was negatively related to perceived fairness. Thus, while individuals may like the personal favors of managers’ interpersonal guanxi practice, their sense of justice is undermined by the broad use of guanxi. In addition, group level guanxi practice moderated the relationship between interpersonal guanxi practice and procedural justice such that this relationship was stronger in work units with high levels of group level guanxi practice. Thus, when employees see many others affected by guanxi, their sense of justice is even more strongly influenced by interpersonal guanxi practice.
Keywords: Guanxi, Guanxi practice, Procedural justice
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