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Embedding social networks: How guanxi ties reinforce Chinese employees’ retention

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  • Hom, Peter W.
  • Xiao, Zhixing
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    Abstract

    Going beyond traditional inquiry into social support from local organizational constituents, this project examined how diverse resources from mutually affiliated contacts within and beyond local work environs boost propensity to stay in firms. We deployed Burt’s (1992) name generator and network closure index to more fully assess guanxi networks in China, which comprise strong, dense, and multiplex ties. Specifically, we tested how closed guanxi networks promote job loyalty among Chinese nationals, while investigating how high-commitment human resource management (HRM) systems moderate network effects. We collected egonet data from 417 employees in four high tech firms in China. Hierarchical linear modeling revealed that guanxi network closure increases propensity to stay, whose effects high-commitment HRM reinforce.

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    Bibliographic Info

    Article provided by Elsevier in its journal Organizational Behavior and Human Decision Processes.

    Volume (Year): 116 (2011)
    Issue (Month): 2 ()
    Pages: 188-202

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    Handle: RePEc:eee:jobhdp:v:116:y:2011:i:2:p:188-202

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    Web page: http://www.elsevier.com/locate/obhdp

    Related research

    Keywords: Guanxi; Network constraint; Turnover; China; High-commitment human resource system;

    References

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    1. Fan, Ying, 2002. "Questioning guanxi: definition, classification and implications," International Business Review, Elsevier, vol. 11(5), pages 543-561, October.
    2. Peter Li, 2007. "Social tie, social capital, and social behavior: Toward an integrative model of informal exchange," Asia Pacific Journal of Management, Springer, vol. 24(2), pages 227-246, June.
    3. M. Gordon Hunter & Felix B. Tan & Bernard C.Y. Tan, 2008. "Voluntary Turnover of Information Systems Professionals: A Cross-Cultural Investigation," Journal of Global Information Management (JGIM), IGI Global, vol. 16(4), pages 46-66, October.
    4. John Godard & John T. Delaney, 2000. "Reflections on the ôhigh performanceö paradigmÆs implications for industrial relations as a field," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 53(3), pages 482-502, April.
    5. Chao Chen & Xiao-Ping Chen, 2009. "Negative externalities of close guanxi within organizations," Asia Pacific Journal of Management, Springer, vol. 26(1), pages 37-53, March.
    6. John Knight & Linda Yueh & Linda Y. Yueh, 2003. "Job Mobility of Residents and Migrants in Urban China," Economics Series Working Papers 163, University of Oxford, Department of Economics.
    7. Crown, Deborah F. & Rosse, Joseph G., 1995. "Yours, Mine, and Ours: Facilitating Group Productivity through the Integration of Individual and Group Goals," Organizational Behavior and Human Decision Processes, Elsevier, vol. 64(2), pages 138-150, November.
    8. Xiao-Ping Chen & Chao C. Chen, 2004. "On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development," Asia Pacific Journal of Management, Springer, vol. 21(3), pages 305-324, 09.
    9. Bat Batjargal, 2007. "Network triads: transitivity, referral and venture capital decisions in China and Russia," Journal of International Business Studies, Palgrave Macmillan, vol. 38(6), pages 998-1012, November.
    10. Wong, Chi-Sum & Wong, Yui-tim & Hui, Chun & Law, Kenneth S., 2001. "The significant role of Chinese employees' organizational commitment: implications for managing employees in Chinese societies," Journal of World Business, Elsevier, vol. 36(3), pages 326-340, October.
    11. Roy Y J Chua & Michael W Morris & Paul Ingram, 2009. "Guanxi vs networking: Distinctive configurations of affect- and cognition-based trust in the networks of Chinese vs American managers," Journal of International Business Studies, Palgrave Macmillan, vol. 40(3), pages 490-508, April.
    12. Ballinger, Gary A. & Lehman, David W. & Schoorman, F. David, 2010. "Leader-member exchange and turnover before and after succession events," Organizational Behavior and Human Decision Processes, Elsevier, vol. 113(1), pages 25-36, September.
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