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

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  • Hom, Peter W.
  • Xiao, Zhixing

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.

Suggested Citation

  • Hom, Peter W. & Xiao, Zhixing, 2011. "Embedding social networks: How guanxi ties reinforce Chinese employees’ retention," Organizational Behavior and Human Decision Processes, Elsevier, vol. 116(2), pages 188-202.
    • Handle: RePEc:eee:jobhdp:v:116:y:2011:i:2:p:188-202
    DOI: 10.1016/j.obhdp.2011.06.001
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    References listed on IDEAS

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    2. Wang, Wen & Seifert, Roger, 2017. "Employee referrals: A study of ‘close ties’ and career benefits in China," European Management Journal, Elsevier, vol. 35(4), pages 514-522.
    3. Long Zhang & Yulin Deng & Xin Zhang & Enhua Hu, 2016. "Why do Chinese employees build supervisor-subordinate guanxi? A motivational analysis," Asia Pacific Journal of Management, Springer, vol. 33(3), pages 617-648, September.
    4. Cachón-Rodríguez, Gabriel & Blanco-González, Alicia & Prado-Román, Camilo & Del-Castillo-Feito, Cristina, 2022. "How sustainable human resources management helps in the evaluation and planning of employee loyalty and retention: Can social capital make a difference?," Evaluation and Program Planning, Elsevier, vol. 95(C).
    5. Long Zhang & Yulin Deng & Qun Wang, 2014. "An Exploratory Study of Chinese Motives for Building Supervisor–Subordinate Guanxi," Journal of Business Ethics, Springer, vol. 124(4), pages 659-675, November.
    6. Horak, Sven & Klein, Andreas & Ahlstrom, David & Li, Xiaomei, 2024. "Resilience or decline of informal networks? Examining the role of trust context in network societies," International Business Review, Elsevier, vol. 33(4).

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