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The Pr he Prevalence and valence and the Incr the Increasing easing Significance Significance of of Guanx Guanxi Yan anji jie e Bian Bian University of Minnesota & Xian Jiaotong University To o pr prese esent a nt at N t


  1. The Pr he Prevalence and valence and the Incr the Increasing easing Significance Significance of of Guanx Guanxi Yan anji jie e Bian Bian University of Minnesota & Xi’an Jiaotong University To o pr prese esent a nt at N t Nottingh ottingham am Univ Univer ersity sity, , Octob October 6, 2 er 6, 201 017. 7.

  2. Outline Outline 1. W 1. Wha hat is t is Guanxi Guanxi ? Some conceptual and ? Some conceptual and theo theoretica etical l issu issues es 2. Case study on job sear 2. Case study on job search netw h networ orks: ks: The F he Fate of te of Guanx Guanxi in China’s Economic Transition ansition

  3. 1. What is Guanxi ? One view : Parnwell (2005) “Chinese guanxi is not a term which can adequately be expressed by an English-language equivalent of one word, the concept is too culture specific.” One definition : Bian (2006) “dyadic, particular, and sentimental tie that has potential of facilitating favor exchange.” One impression: a UoM student (2012), “guanxi network is a network that is hard to get in and it is equally hard to get out.”

  4. Examples of Definitions & Characterizations from 70 years • Social extensions of kinship ethics and ties: Liang Shuming, 1947 • Differential mode of associations/overlapping egocentric networks: Fei Xiaotong, 1947 • Fabric of social organization: Moten Fried 1953 • Ties as a relational bearer of face: Ambrose King 1985, 1990s • Instrumental-particular ties: Andrew Walder 1986 • Strategic mixed ties of face and favor: Hwang Kuang-Kuo 1987 • Social exchange ties in a gift economy: Mayfair Yang 1994 • Habitus social connections: Yan Yunxiang 1996 • Strong ties facilitating favor exchanges: Bian Yanjie 1997, 2006 • Obligational and symbiotic ties: David Wank, 1999, 2015 • Asymmetrical social exchange ties: Nan Lin 2001, 2015/2016 • Generalized particularism: Lo and Otis, 2003 • Adaptive purposive network behavior: Chang, 2011 • Isotopic social capital: Bian and Zhang, 2014

  5. Conceptualization #1: Changing Relational Bases • Narrow: --Familial ties of sentiment and obligation --EX: kin, pseudo-kin • Broader: --Particular-instrumental ties --EX: kin, pseudo-kin, patron-client relations • Broadest: --Diverse ties that facilitate favor exchanges --EX: kin, pseudo-kin, patron-client relations, significant others • Characterizations: --Exchange: repeated reciprocities --Duration: long-lasting --Strength: strong --Relational constraint: high -- Resources: significance of “small non -redundancy Repeated favor exchanges via 熟 亲 信 ties (acquaintance, intimacy, trust) 5

  6. Conceptulization #2: Isotopic Social Capital • Relational particularism: a strong personal tie, ensures kin or pseudo-kin sentiments, repeated favor exchanges or Kin-ization , “Differential mode of association ” ( 差序格局 Fei 1992) • Multiplexity: multi-functions (Verbrugge 1979: 1286), multi- stranded/channels (Mitchell 1969); norm mixing (King 1994) • Reciprocal obligations: indebtedness, eagerness, and effort-giving, as binding mechanisms • Significance: This conceptualization gives us a basis for comparative SC studies 6

  7. A General Model of Network Social Capital 7

  8. Guanxi as a Variable: A 5-Point Understanding 1) Guanxi as connectivity (or dis-connectivity), and its embedded resources are (1) mutual recognition as members of a shared community and (2) communication. 2) Guanxi as a sentimental tie, and its embedded resources are human affections, containing sympathy, care, and a sense of altruist, not reciprocal, help. The stake is small though significant. 3) Guanxi as a sentiment-derived instrumental tie, and its resources are substantial help with reciprocal implications and expectations. 4) Guanxi as an instrumental particular tie, and its resources vary hugely but the norms of reciprocity, face, and favor are primary. 5) Guanxi as an obligational tie, a well-understood informal contract, and its resources are specific, behaviors highly patterned, but relational origins, bases, or forms unclear or vary randomly.

  9. 2. Case Study on the Fate of Guanxi in China’s Transition Per ersistent sistent significance significance Gr Grano anovett etter er (1985) (1985): embed : embeddedness dedness ,市场嵌入网络 Powell ell & Smith & Smith-Doer Doerr r (1990) (1990): go : gover ernance str nance structur ucture ,治理结构网络 De Declining lining signif significan icance ce Gut Guthrie hrie (1998) (1998): dec : declining lining significance significance of of guanxi guanxi , 市场限制网络 Increasing Incr easing significance significance Nee Nee (1992) (1992): rising : rising horiz horizontal ontal ties ties in in hybrid hybrid economy economy ,横向网络 Lin Lin (1995) (1995): kinship : kinship netw networ orks ks as as str structur ucture e of of villa village ge industr industry y ,社区网络 Boisot & Child Boisot & Child (1996) (1996): inf : infor orma mation tion & netw & networ ork k ca capitalism pitalism ,信息网络 Wank (1999 ank (1999): symbiotic ): symbiotic clientelism lientelism ,共生网络 Zhou et Zhou et al al (2003) (2003): enf : enfor orcement of cement of inter inter-fir firm m contr contracts acts ,合同网络 Sa Sato to (2003) (2003): netw : networ ork r k ref efer errals als for or mig migrant ant la labor bor ,介绍网络 Peng eng (2004) (2004): inf : infor ormal mal pr proper operty ty-right right institut institution ion of of TVE TVEs ,产权网络 Mic Michelson helson (2007) (2007): embed : embeddedness dedness in le in legal gal pr prof ofession ession ,诉讼网络 Guo Guo and Miller and Miller (2010) (2010): cor : core, e, extende xtended, d, oppor opportunit tunity y ties, ties, 机会网络 Luo et Luo et al. al. (2012) (2012): 53 studies : 53 studies of of 20,000 or 20,000 organiza ganizations, tions, 组织网络 MOR MOR (2011) (2011) Special Special Issue: Issue: Variet ariety y of of ca capitalism pitalism ,共存体制 9

  10. A Typology on Guanxi Dynamism 10

  11. % Jobs through Social Ties 1 0.9 0.8 0.7 0.6 0.5 0.4 0.3 0.2 0.1 0 2014 2009 1999 11

  12. Resea esearch Design h Design • Da Datas tasets ets Mer Merged ged : JSnet JSnet 1999 & 1999 & 2009 2009 , CGSS CGSS 2003 & 2003 & 2008 2008 • Period eriod : Post ost-Ref efor orm m Er Era , 1978 1978-2009 2009 , N=10232 N=10232 • Guanxi Guanxi User Users : Inf Infor orma mation? tion? F Favor ors? s? • Mar Marketiza etization tion Ind Indica icator tors : Non Non-Sta State J te Jobs obs 、 Fan’s Index • Instit Institutionaliza utionalization tion Ind Indica icator tors : Mer Merit it Scr Screening I eening Inde ndex x (MSI (MSI) La Latent tent c class lasses es #1 #2 #3 #4 #5 15.45% 30.58% 19.82% 23.44% 10.70% Educa Education/ tion/skill skill 0.9584 0.9584 0.0004 0.6080 0.6080 0.8807 0.8807 0.8136 0.8136 Wri Writt tten en tes test 0.6391 0.6391 0.0217 0.0905 0.0124 1.0000 1.0000 Inter Interview view 0.9685 0.9685 0.0914 0.4606 0.4606 0.4067 0.9068 0.9068 Gender D Gender Disc. isc. 0.4749 0.4749 0.0429 0.4752 0.4752 0.0681 0.0079 Age Disc. Age Disc. 0.81 0.8165 65 0.0287 0.73 0.7390 90 0.0787 0.1444

  13. Network Resources from Social Contacts • Information – Gave me information about a job opening – Gave me information about the workplace where there are job openings – Gave me advice about how to apply for “that job” – Assisted me in preparing my job application – Prepared my application • Favor/influence – Delivered my application to the hiring organization – Recommend me to the hiring organization – Contacted “a relevant person” of the hiring organization – Did something concrete to boost my chances of being hired • Arranged an informal meeting with a VIP of the hiring organization • Escorted me to visit the home of a VIP of the hiring organization – Solved a problem leading to my hire at the organization • Helped the organization resolve a concrete program • Promised to help with a proposal 13 – Directly offer me a job

  14. Table ble 1. ARIMAX 1. ARIMAX Mod Models o els on n Job ob-Se Sear arch h Netw Networ orks ks, , Bian Bian & Zh & Zhan ang Proportion of Using Networks (Y) Y t Y t – Y t-1 Auto-reg Y t-1 0.942* 0.507 0.420 0.955* 0.929* -0.371 Ex var Market t 0.485* 0.020 Market t-1 0.465* MSI t -0.233 MSI t-1 -0.214 MSI t - MSI t-1 -1.128* BIC -83.837 -90.752 -83.466 -80.855 -76.786 -88.395 N 32 32 31 32 31 31

  15. Table ble 2. 2. Mix Mixed ed-Ef Effec ect t Lo Logist gistic ic Regres ession sion, , Bian Bian & Zh & Zhan ang Ex Var at Market Model MSI Model Job entry Main Inter Main Inter Age 0.034* 0.034* Age 2 /100 -0.088* -0.087* Female 0.184* -0.039 0.165* 0.001 R-Hukou 0.733* -1.240* 0.304* -0.002 F's SEI 0.003* 0.007 0.005* 0.000 Party -0.389* 0.347 -0.257* -0.001 Education -0.055* 0.012 -0.051* -0.000 Market 1.818* 2.047* MSI -0.002* -0.003* Constant -0.997* -1.037* BIC 13248.542 13260.406 N 10232 10232

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