Leader–follower guanxi: an invisible hand of cronyism in Chinese management

Abstract

Guanxi social networks are part of the fabric of Chinese society and central to every aspect of Chinese life including work. The relationship between guanxi and cronyism has been researched and discussed by scholars in supervisor–subordinate guanxi (SSG) studies. However, SSG cannot explain the full extent of cronyism in Chinese management, which usually encompasses a network of actors including a supervisor, a subordinate, a third party (called ‘leader’) who has a higher ranking than a subordinate, and possibly an intermediary between a leader and a supervisor in the same organization. Consequently, this paper develops a new construct leader–follower guanxi (LFG) to explain cronyism in Chinese management. LFG is defined as the existence of direct particularistic (ingroup) ties associated with a particular set of differentiated behavioral obligations based on social norms between a leader and a follower in the same organization. We examine the relationship between LFG and cronyism in Chinese organizations and propose that LFG will be positively associated with cronyism. We then use Chinese ‘face’ theory (mianzi and lian) to illustrate how LFG engenders cronyism in Chinese management. We assert that LFG serves as an invisible hand of cronyism in Chinese organizations. Finally, we consider how to develop leadership and HR practices that prevent cronyism in Chinese organizations.

The Effects of Asymmetrical Guanxi Perception on Job Burnout: Task Conflict, Relationship Conflict, and Process Conflict as Mediators

“…Employees who work in Chinese organizations must pay particular attention to different types of guanxi existing within such an organization. In addition, guanxi in Chinese organizations can be classified as "in-group" or "out-group"; this describes the tendency of managers to divide subordinates according to guanxi and treat or reward subordinates with different guanxi in a different manner (Tsui and Farh, 1997;Zhang and Gill, 2019). Moreover, actual and potential resources are embedded in the guanxi in-group network possessed by individuals or social units, yet these resources can only be exchanged within a guanxi in-group network (Chen and Chen, 2009;Guan and Frenkel, 2019).…”

“…Though guanxi has both positive and negative effects, the present study focuses solely on its negative effects. Past studies on the negative effects of guanxi have indicated that they include adverse outcomes, such as procedural injustice perceptions, violation of organizational procedures, negative externalities, cronyism, corruption, job burnout, and an erosion of trust in authority ( Gold, 1985 ; Chu and Ju, 1990 ; Pye, 1995 ; Bian, 1997 ; Leana and Rousseau, 2000 ; Chen et al, 2004, 2011 ; Khatri et al, 2006 ; Gorgievski and Hobfoll, 2008 ; Chen and Chen, 2009 ; Hu et al, 2016 ; Zhang and Gill, 2019 ; Liu and Jia, 2020 ; Xu et al, 2020 ). However, the guanxi investigated in these studies was always substantial; the negative effects of non-substantial guanxi, such as the guanxi of erroneous perceptions, were not investigated.…”

Hotel employees’ fun climate at work: Effects on work-family conflict and employee deep acting through a collectivistic perspective

“…Third, culture-related constructs in collectivism, such as guanxi and renqing ( Wang et al, 2008 ; Xin and Pearce, 1996 ; Zhang and Gill, 2019 ), have not yet been studied with fun climate at work. Future research should investigate the effects of these collectivistic constructs within the research theme of workplace fun climate.…”

Between culture and satisfaction: mediating roles of renqing perception and rules perception

“…Marketing scholars stressed that renqing is a crucial cultural factor that should be highlighted in studying business relationships in China (Shi et al 2011; Wang et al 2008; Yen et al 2017). Moreover, empirical analyses of organization and management researchers have shown that the renqing norm is prevalent in Chinese organizations, and requires people to treat others generously and charitably through helping, caring, exchanging favors, and showing sympathy, and to integrate their considerations of both affect ( renqin g) and reason (rules) in situations of decision‐making (Chen et al 2009; Zhang and Gill, 2019; Zhang and Yang 1998, 2001). Although these studies advanced our understandings of the prominence of the renqing norm in Chinese social and organizational settings, none has touched upon what employees’ renqing perceptions are, and how these perceptions perform in the Chinese workplace.…”

“…However, people cannot deal with social affairs solely according to the renqing norm in any situation, especially in the organizational settings. This is because people are essentially required to follow the formal rules and regulations of the workplace, which may contradict the renqing norm (Zhang and Gill 2019). In fact, grounded in Confucian ideology, Chinese people always strive to achieve a balance between renqing and rules (Zhu 2009).…”