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

See all articles by Ying Chen

Ying Chen

Vanderbilt University

Ray Friedman

Vanderbilt University - Organizational Behavior

Enhai Yu

North China Electric Power University

Fubin SUN

School of Management, Xi'an Jiaotong University

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

Suggested Citation

Chen, Ying and Friedman, Raymond A. and Yu, Enhai and Sun, Fubin, Examining the Positive and Negative Effects of Guanxi Practices (2009). Asia Pacific Journal of Management 2011, 28: 715-735, Vanderbilt Owen Graduate School of Management Research Paper No. 2071329, Available at SSRN: https://ssrn.com/abstract=2071329 or http://dx.doi.org/10.2139/ssrn.2071329

Ying Chen (Contact Author)

Vanderbilt University ( email )

2301 Vanderbilt Place
Nashville, TN 37240
United States

Raymond A. Friedman

Vanderbilt University - Organizational Behavior ( email )

401 21st Avenue South
Nashville, TN 37203
United States
615-322-3992 (Phone)
615-343-7177 (Fax)

HOME PAGE: http://mba.vanderbilt.edu/faculty/rfriedman.cfm

Enhai Yu

North China Electric Power University ( email )

School of Business Administration,NCEPU
No. 2 Beinong Road, Changqing District
Beijing, Beijing 102206
China

Fubin Sun

School of Management, Xi'an Jiaotong University ( email )

28 Xianning Road, Xi'an, China
Xi'an, Shaanxi Province 710049
China
+86-29-8266 5868 (Phone)
+86-29-8266 5818 (Fax)

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