Can guanxi be a problem? Contexts, ties, and some unfavorable consequences of social capital in China

Abstract

Social capital, Strong-ties and weak-ties, Guanxi , Chinese context,

How powerful political ties appropriate resources and how weaker organizations protect themselves: A case study from Indonesia

“…Permeability is needed to share resources, for instance through boundary spanning activities or connections, but it also has negative effects (Lin & Si, 2010;Young, Peng, Ahlstrom, & Bruton, 2003). These include possible interference in the organization, lesser autonomy and control, or limited opportunity to build a common sense of purpose (Oliver, 1993).…”

“…Yet these linkages also carry some costs and risks (Lin & Si, 2010). Researchers employing resource dependence theory (RDT) in particular have shown that risks are prevalent when there is a power imbalance, as powerful partners may appropriate organizational resources (Casciaro & Piskorski, 2005;Emerson, 1962;Gulati & Singh, 1998;Pfeffer & Salancik, 1978).…”

“…How companies can protect themselves against appropriation is a relatively recent but important research topic within RDT, especially in the context of powerful political ties, an area where capture by powerful partners is particularly acute. Political ties link the organization to the government with potentially beneficial effects (Hillman, 2005), but they cannot be fully controlled and may create their own problems such the extraction of rents or derailing strategy (Fan, Wong, & Li, 2007;Lin & Si, 2010;Shleifer & Vishny, 1994;Siegel, 2007;Sun, Hu, & Hillman, 2016;Sun, Mellahi, & Wright, 2012). A new generation of RDT research suggests this problem is particularly salient in emerging economies, where new ventures often need powerful political ties to acquire resources such as licenses to operate and build legitimacy, but this can yield a power imbalance that may stimulate appropriation of firm resources (Mellahi et al, 2016).…”

A checklist for prospective authors of Asia Pacific Journal of Management

“…Perspectives, review, and commentary papers are all welcome (e.g. Ismail & Ford, 2010;Lin & Si, 2010;Zhou & Peng, 2010).…”

On the aims and scope of the Asia Pacific Journal of Management: What does APJM really seek to publish?

“…Indeed, the recent Special Issues in APJM on corporate governance in Asia (Globerman, Peng, & Shapiro, 2011) and on managing in ethnic Chinese communities (Ahlstrom et al, 2010), provide a number of excellent examples of the variety of different papers published in APJM. These range from empirical papers to qualitative and exploratory ones, to conceptual papers, and commentaries and reviews (e.g., Dieleman, 2010;Filatotchev, Zhang, & Piesse, 2011;Globerman et al, 2011;Lin & Si, 2010;Wielemaker & Gedajlovic, 2011;Zou, Chen, & Ghauri, 2010).…”