Inward−outward guanxi contagion and employees’ responses to managerial guanxi practices

Our study develops a new conceptual framework in which guanxi practices (managerial use of interpersonal ties to benefit their organizations) are analyzed by their focus (resources flowing inward or resources flowing outward) and their base (familiar – based on friendship ties; or family – based on kinship ties). Using this framework, we highlight the linkage between costs and benefits from using guanxi in Chinese business organizations, and show how the linkage depends on the guanxi base. Finally, we show how guanxi focus and guanxi base importantly affect employee responses to the use of guanxi practices in their organizations.