Impact of Guanxi on Managerial Satisfaction and Commitment in China

This study assesses the role of guanxi (relationship) in organisational commitment and job satisfaction among mid-level managers in China today. Based on a large survey sample, we quantitatively identify three components of guanxi by adopting the principal component analysis (PCA), and then apply the multivariate regressions to examine the impact of guanxi. Our research unveils how guanxi dimensions, a type of social connection with features of Chinese culture, exert unique and practical impacts on the work environment. Consistent with the literature, organisational guanxi is confirmed to enhance job satisfaction and affective commitment, while personal guanxi is found to undermine job satisfaction and affective commitment. On the other hand, organisational guanxi tends to reduce continuance or normative commitment while personal guanxi improves both. These findings contribute to the literature with evidence highlighting the importance of guanxi in human resources management and also shed new light to the heterogeneity of such influence across geographical locations, demographic variation, and forms of organisation. Overall, this research suggests that the ability to navigate different dimensions of guanxi is a necessary skill for the managers in Chinese business.