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Guanxi Practices and Trust in Management: A Procedural Justice Perspective

Author

Listed:
  • Chao C. Chen

    (Rutgers, The State University of New Jersey, 111 Washington Street, Newark, New Jersey 07102)

  • Ya-Ru Chen

    (Stern School of Business, Room 7-05, New York University, 40 West 4th Street, New York, New York 10012)

  • Katherine Xin

    (China Europe International Business School, and The Hong Kong University of Science and Technology, 699 Hongfeng Road, Pudong, Shanghai, 201206, P.R. China)

Abstract

Taking a procedural justice perspective, we examined the effect of guanxi practices in human resources management (i.e., making human resources management decisions on the basis of personal relationships) on employees' trust in management in Chinese organizations. Two studies were conducted. In the first, a survey study, we found a negative effect of guanxi practices on trust in management, which was mediated by perceived procedural justice. In the second, an experimental study, we found that the negative effect of guanxi practices varied as a function of guanxi bases: favoring a nephew or a hometown fellow lowered trust, but favoring a college schoolmate or a close friend did not. Theoretical and practical implications are discussed.

Suggested Citation

  • Chao C. Chen & Ya-Ru Chen & Katherine Xin, 2004. "Guanxi Practices and Trust in Management: A Procedural Justice Perspective," Organization Science, INFORMS, vol. 15(2), pages 200-209, April.
    • Handle: RePEc:inm:ororsc:v:15:y:2004:i:2:p:200-209
    DOI: 10.1287/orsc.1030.0047
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    References listed on IDEAS

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    1. Jiing-Lih Farh & Anne S. Tsui & Katherine Xin & Bor-Shiuan Cheng, 1998. "The Influence of Relational Demography and Guanxi: The Chinese Case," Organization Science, INFORMS, vol. 9(4), pages 471-488, August.
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