IDEAS home Printed from https://ideas.repec.org/a/eee/ememar/v55y2023ics1566014123000134.html
   My bibliography  Save this article

Does managerial networking impinge our morality in Guanxi context? The moderating effect of corruption perception

Author

Listed:
  • Wu, Bao
  • Fang, Chevy-Hanqing
  • Wang, Qi
  • Huang, Qiongxian

Abstract

This study explores the relationship between managerial networking and corporate morality in a guanxi context where personal relationship is widely used for organizational purposes. Using a sample of 6361 Chinese private firms, we find a significantly positive relationship between managerial networking and corporate social responsibility, including corporate charitable donations and environmental protection, and an insignificant relationship between managerial networking and the prevalence of business bribery. We also find that such relationships depend on corruption perception, that is, when corruption perception is high, the negative effects of managerial networking are more likely to rise but the positive effects of managerial networking are more likely to be weakened. These results are robust and consistent across various measurements and models.

Suggested Citation

  • Wu, Bao & Fang, Chevy-Hanqing & Wang, Qi & Huang, Qiongxian, 2023. "Does managerial networking impinge our morality in Guanxi context? The moderating effect of corruption perception," Emerging Markets Review, Elsevier, vol. 55(C).
  • Handle: RePEc:eee:ememar:v:55:y:2023:i:c:s1566014123000134
    DOI: 10.1016/j.ememar.2023.101008
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S1566014123000134
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.ememar.2023.101008?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Hanousek, Jan & Shamshur, Anastasiya & Tresl, Jiri, 2019. "Firm efficiency, foreign ownership and CEO gender in corrupt environments," Journal of Corporate Finance, Elsevier, vol. 59(C), pages 344-360.
    2. Jamie Collins & Klaus Uhlenbruck & Peter Rodriguez, 2009. "Why Firms Engage in Corruption: A Top Management Perspective," Journal of Business Ethics, Springer, vol. 87(1), pages 89-108, June.
    3. Yongqiang Gao & Taïeb Hafsi, 2015. "Government Intervention, Peers’ Giving and Corporate Philanthropy: Evidence from Chinese Private SMEs," Journal of Business Ethics, Springer, vol. 132(2), pages 433-447, December.
    4. Shengli Yu & Anna Lee Rowe, 2017. "Emerging phenomenon of corporate social and environmental reporting in China," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 8(3), pages 386-415, July.
    5. Giuseppe Soda & Akbar Zaheer, 2012. "A network perspective on organizational architecture: performance effects of the interplay of formal and informal organization," Strategic Management Journal, Wiley Blackwell, vol. 33(6), pages 751-771, June.
    6. Daryl Koehn & Joe Ueng, 2010. "Is philanthropy being used by corporate wrongdoers to buy good will?," Journal of Management & Governance, Springer;Accademia Italiana di Economia Aziendale (AIDEA), vol. 14(1), pages 1-16, February.
    7. Samuel Adomako & Mai Dong Tran, 2022. "Stakeholder management, CSR commitment, corporate social performance: The moderating role of uncertainty in CSR regulation," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 29(5), pages 1414-1423, September.
    8. Luo, Jinbo & Liu, Qigui, 2020. "Corporate social responsibility disclosure in China: Do managerial professional connections and social attention matter?," Emerging Markets Review, Elsevier, vol. 43(C).
    9. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    10. Antonis Skouloudis & Konstantinos Evangelinos & Chrisovaladis Malesios, 2015. "Priorities and Perceptions for Corporate Social Responsibility: An NGO Perspective," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 22(2), pages 95-112, March.
    11. Sean Cleary, 1999. "The Relationship between Firm Investment and Financial Status," Journal of Finance, American Finance Association, vol. 54(2), pages 673-692, April.
    12. Bertrand Venard, 2009. "Organizational isomorphism and corruption: An empirical research in Russia," Post-Print hal-00771102, HAL.
    13. Seung Ho Park & Yadong Luo, 2001. "Guanxi and organizational dynamics: organizational networking in Chinese firms," Strategic Management Journal, Wiley Blackwell, vol. 22(5), pages 455-477, May.
    14. Fang Huang & John Rice, 2012. "Firm Networking and Bribery in China: Assessing Some Potential Negative Consequences of Firm Openness," Journal of Business Ethics, Springer, vol. 107(4), pages 533-545, June.
    15. Sun, Francis & Chen, Shih-Fen S., 2017. "The Role of Business Entertainment in Economic Exchanges: A Governance Perspective and Propositions," Management and Organization Review, Cambridge University Press, vol. 13(1), pages 121-146, March.
    16. Marta A. Geletkanycz & Brian K. Boyd & Sydney Finkelstein, 2001. "The strategic value of CEO external directorate networks: implications for CEO compensation," Strategic Management Journal, Wiley Blackwell, vol. 22(9), pages 889-898, September.
    17. Hoje Jo & Maretno Harjoto, 2012. "The Causal Effect of Corporate Governance on Corporate Social Responsibility," Journal of Business Ethics, Springer, vol. 106(1), pages 53-72, March.
    18. Nandy, Monomita & Lodh, Suman & Kaur, Jaskaran & Wang, Jin, 2020. "Impact of directors' networks on corporate social responsibility: A cross country study," International Review of Financial Analysis, Elsevier, vol. 72(C).
    19. Mai Dong Tran & Samuel Adomako, 2021. "How CEO social capital drives corporate social performance: The roles of stakeholders, and CEO tenure," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 28(2), pages 819-830, March.
    20. Wu, Bao & Fang, Hanqing & Jacoby, Gady & Li, Geling & Wu, Zhenyu, 2022. "Environmental regulations and innovation for sustainability? Moderating effect of political connections," Emerging Markets Review, Elsevier, vol. 50(C).
    21. Snell, Robin S., 1999. "Obedience to Authority and Ethical Dilemmas in Hong Kong Companies," Business Ethics Quarterly, Cambridge University Press, vol. 9(3), pages 507-526, July.
    22. Sun, Francis, 2016. "How to manage client entertainment in China," Business Horizons, Elsevier, vol. 59(4), pages 401-410.
    23. Lee, Gilsoo & Cho, Sam Yul & Arthurs, Jonathan & Lee, Eun Kyung, 2020. "Celebrity CEO, identity threat, and impression management: Impact of celebrity status on corporate social responsibility," Journal of Business Research, Elsevier, vol. 111(C), pages 69-84.
    24. Yadong Luo, 2003. "Industrial dynamics and managerial networking in an emerging market: the case of China," Strategic Management Journal, Wiley Blackwell, vol. 24(13), pages 1315-1327, December.
    25. Wade M Danis & Dan S Chiaburu & Marjorie A Lyles, 2010. "The impact of managerial networking intensity and market-based strategies on firm growth during institutional upheaval: A study of small and medium-sized enterprises in a transition economy," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 41(2), pages 287-307, February.
    26. Adele Santana & Antonino Vaccaro & Donna Wood, 2009. "Ethics and the Networked Business," Journal of Business Ethics, Springer, vol. 90(4), pages 661-681, December.
    27. Zhongfeng Su & En Xie & Dong Wang, 2015. "Entrepreneurial Orientation, Managerial Networking, and New Venture Performance in China," Journal of Small Business Management, Taylor & Francis Journals, vol. 53(1), pages 228-248, January.
    28. Besser, Terry L. & Miller, Nancy J., 2011. "The Company They Keep: How Formal Associations Impact Business Social Performance," Business Ethics Quarterly, Cambridge University Press, vol. 21(3), pages 503-525, July.
    29. Cesinger, Beate & Hughes, Mathew & Mensching, Helge & Bouncken, Ricarda & Fredrich, Viktor & Kraus, Sascha, 2016. "A socioemotional wealth perspective on how collaboration intensity, trust, and international market knowledge affect family firms’ multinationality," Journal of World Business, Elsevier, vol. 51(4), pages 586-599.
    30. Matthew Walker & Bob Heere & Milena Parent & Dan Drane, 2010. "Social Responsibility and the Olympic Games: The Mediating Role of Consumer Attributions," Journal of Business Ethics, Springer, vol. 95(4), pages 659-680, September.
    31. Wu, Bao & Jin, Chenfei & Monfort, Abel & Hua, Danni, 2021. "Generous charity to preserve green image? Exploring linkage between strategic donations and environmental misconduct," Journal of Business Research, Elsevier, vol. 131(C), pages 839-850.
    32. William Shafer, 2015. "Ethical Climate, Social Responsibility, and Earnings Management," Journal of Business Ethics, Springer, vol. 126(1), pages 43-60, January.
    33. Shengli Yu & Anna Lee Rowe, 2017. "Emerging phenomenon of corporate social and environmental reporting in China," Sustainability Accounting, Management and Policy Journal, Emerald Group Publishing Limited, vol. 8(3), pages 386-415, July.
    34. Lu Shen & Kevin Zheng Zhou & Chuang Zhang, 2022. "Is Interpersonal Guanxi Beneficial in Fostering Interfirm Trust? The Contingent Effect of Institutional- and Individual-Level Characteristics," Journal of Business Ethics, Springer, vol. 176(3), pages 575-592, March.
    35. Wu, Bao & Monfort, Abel & Jin, Chenfei & Shen, Xinyan, 2022. "Substantial response or impression management? Compliance strategies for sustainable development responsibility in family firms," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    36. Olken, Benjamin A., 2009. "Corruption perceptions vs. corruption reality," Journal of Public Economics, Elsevier, vol. 93(7-8), pages 950-964, August.
    37. Steve Lovett & Lee C Simmons & Raja Kali, 1999. "Guanxi Versus the Market: Ethics and Efficiency," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 231-247, June.
    38. Yuri Mishina & Emily S. Block & Michael J. Mannor, 2012. "The path dependence of organizational reputation: how social judgment influences assessments of capability and character," Strategic Management Journal, Wiley Blackwell, vol. 33(5), pages 459-477, May.
    39. Xin Liu, 2020. "Impression management against early dismissal? CEO succession and corporate social responsibility," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 27(2), pages 999-1016, March.
    40. Al-Shammari, Marwan & Rasheed, Abdul & Al-Shammari, Hussam A., 2019. "CEO narcissism and corporate social responsibility: Does CEO narcissism affect CSR focus?," Journal of Business Research, Elsevier, vol. 104(C), pages 106-117.
    41. Wu, Bao & Wang, Qi & Fang, Chevy-Hanqing & Tsai, Fu-Sheng & Xia, Yuanze, 2022. "Capital flight for family? Exploring the moderating effects of social connections on capital outflow of family business," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 77(C).
    42. Luo, Yadong, 2008. "The changing Chinese culture and business behavior: The perspective of intertwinement between guanxi and corruption," International Business Review, Elsevier, vol. 17(2), pages 188-193, April.
    43. Youliang Yan & Xixiong Xu, 2022. "Does Entrepreneur Invest More in Environmental Protection When Joining the Communist Party? Evidence from Chinese Private Firms," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 58(3), pages 754-775, February.
    44. Jun Su & Jia He, 2010. "Does Giving Lead to Getting? Evidence from Chinese Private Enterprises," Journal of Business Ethics, Springer, vol. 93(1), pages 73-90, April.
    45. Liu, Heng & Luo, Jin-hui, 2022. "Legacy of ideology: The enduring effect of CEOs’ socialist ideological imprint on private firms’ employee-related CSR," Journal of Business Research, Elsevier, vol. 147(C), pages 491-504.
    46. Amir Barnea & Amir Rubin, 2010. "Corporate Social Responsibility as a Conflict Between Shareholders," Journal of Business Ethics, Springer, vol. 97(1), pages 71-86, November.
    47. Azmat, Fara, 2010. "Exploring social responsibility of immigrant entrepreneurs: Do home country contextual factors play a role?," European Management Journal, Elsevier, vol. 28(5), pages 377-386, October.
    48. Dennis Hwang & Patricia Golemon & Yan Chen & Teng-Shih Wang & Wen-Shai Hung, 2009. "Guanxi and Business Ethics in Confucian Society Today: An Empirical Case Study in Taiwan," Journal of Business Ethics, Springer, vol. 89(2), pages 235-250, October.
    49. Agnes Akkerman & René Torenvlied, 2011. "Managing The Environment," Public Management Review, Taylor & Francis Journals, vol. 13(1), pages 159-174, January.
    50. Wen-wen Zheng & Li Liu & Zhen-wei Huang & Xu-yun Tan, 2017. "Life Satisfaction as a Buffer of the Relationship Between Corruption Perception and Political Participation," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 132(2), pages 907-923, June.
    51. Barkat Ullah, 2021. "The Differential Effect of Corruption on Growth: Does Firm Origin Matter?," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(14), pages 4036-4053, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Wu, Bao & Monfort, Abel & Jin, Chenfei & Shen, Xinyan, 2022. "Substantial response or impression management? Compliance strategies for sustainable development responsibility in family firms," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    2. Jin, Chenfei & Monfort, Abel & Chen, Feng & Xia, Neng & Wu, Bao, 2024. "Institutional investor ESG activism and corporate green innovation against climate change: Exploring differences between digital and non-digital firms," Technological Forecasting and Social Change, Elsevier, vol. 200(C).
    3. Jin, Chenfei & Tsai, Fu-Sheng & Gu, Qiuyang & Wu, Bao, 2022. "Does the porter hypothesis work well in the emission trading schema pilot? Exploring moderating effects of institutional settings," Research in International Business and Finance, Elsevier, vol. 62(C).
    4. He, Xuan & Xiao, Weicheng, 2022. "What drives family SMEs to internationalize? An integrated perspective of community institutions and knowledge resources," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 81(C).
    5. Tang, Pengcheng & Yang, Shuxiang & Yang, Shuwang, 2020. "How to design corporate governance structures to enhance corporate social responsibility in China's mining state-owned enterprises?," Resources Policy, Elsevier, vol. 66(C).
    6. Bai Xue & Zhuang Zhang & Pingli Li, 2020. "Corporate environmental performance, environmental management and firm risk," Business Strategy and the Environment, Wiley Blackwell, vol. 29(3), pages 1074-1096, March.
    7. Francesco Gangi & Mario Mustilli & Lucia Michela Daniele & Maria Coscia, 2022. "The sustainable development of the aerospace industry: Drivers and impact of corporate environmental responsibility," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 218-235, January.
    8. Patricia Crifo & Elena Escrig-Olmedo & Nicolas Mottis, 2019. "Corporate Governance as a Key Driver of Corporate Sustainability in France: The Role of Board Members and Investor Relations," Journal of Business Ethics, Springer, vol. 159(4), pages 1127-1146, November.
    9. Angus W. H. Yip & William Y. P. Yu, 2023. "The Quality of Environmental KPI Disclosure in ESG Reporting for SMEs in Hong Kong," Sustainability, MDPI, vol. 15(4), pages 1-26, February.
    10. Ji, Mianmian & Lv, Wendai, 2022. "Demonstration zones reform and corporate philanthropy: Evidence from China," Economic Modelling, Elsevier, vol. 115(C).
    11. Zhao, Wenzhuo & Qin, Luohan & Zhao, Yali & Zuo, Jingjing, 2024. "Social media coverage and perk consumption: Agency view or efficiency view?," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1058-1073.
    12. Gangi, Francesco & Meles, Antonio & Monferrà, Stefano & Mustilli, Mario, 2020. "Does corporate social responsibility help the survivorship of SMEs and large firms?," Global Finance Journal, Elsevier, vol. 43(C).
    13. Wu, Bao & Liu, Zijia & Gu, Qiuyang & Tsai, Fu-Sheng, 2023. "Underdog mentality, identity discrimination and access to peer-to-peer lending market: Exploring effects of digital authentication," Journal of International Financial Markets, Institutions and Money, Elsevier, vol. 83(C).
    14. Pi‐Hui Ting & Hsien‐yu Yin, 2018. "How do corporate social responsibility activities affect performance? The role of excess control right," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 25(6), pages 1320-1331, November.
    15. White, George O. & Boddewyn, Jean J. & Galang, Roberto Martin N., 2015. "Legal system contingencies as determinants of political tie intensity by wholly owned foreign subsidiaries: Insights from the Philippines," Journal of World Business, Elsevier, vol. 50(2), pages 342-356.
    16. Abdalla Shwairef & Azlan Amran & Mohammad Iranmanesh & Noor Hazlina Ahmad, 2021. "The mediating effect of strategic posture on corporate governance and environmental reporting," Review of Managerial Science, Springer, vol. 15(2), pages 349-378, February.
    17. Mohammed Benlemlih & Mohammad Bitar, 2018. "Corporate Social Responsibility and Investment Efficiency," Journal of Business Ethics, Springer, vol. 148(3), pages 647-671, March.
    18. Zhao, Hongxin & Lu, Jiangyong, 2016. "Contingent value of political capital in bank loan acquisition: Evidence from founder-controlled private enterprises in China," Journal of Business Venturing, Elsevier, vol. 31(2), pages 153-174.
    19. Ntim, Collins G., 2016. "Corporate governance, corporate health accounting, and firm value: The case of HIV/AIDS disclosures in Sub-Saharan Africa," The International Journal of Accounting, Elsevier, vol. 51(2), pages 155-216.
    20. Pattanaporn Chatjuthamard & Sirimon Treepongkaruna & Pornsit Jiraporn & Napatsorn Jiraporn, 2021. "Does firm‐level political risk influence corporate social responsibility (CSR)? Evidence from earnings conference calls," The Financial Review, Eastern Finance Association, vol. 56(4), pages 721-741, November.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ememar:v:55:y:2023:i:c:s1566014123000134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/620356 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.