Examining the positive and negative effects of guanxi practices: A multi-level analysis of guanxi practices and procedural justice perceptions

Ying Chen, Ray Friedman, Enhai Yu, Fubin Sun

Research output: Contribution to journalArticlepeer-review

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.

Original languageEnglish (US)
Pages (from-to)715-735
Number of pages21
JournalAsia Pacific Journal of Management
Volume28
Issue number4
DOIs
StatePublished - Dec 1 2011

Keywords

  • Guanxi
  • Guanxi practice
  • Procedural justice

ASJC Scopus subject areas

  • Business and International Management
  • Economics, Econometrics and Finance (miscellaneous)
  • Strategy and Management

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