Overcoming the liability of smallness by recruiting through networks in China: a guanxi-based social capital perspective

Ko, Wai Wai; Liu, Gordon

doi:10.1080/09585192.2015.1128467

Cited by 22 publications

(16 citation statements)

References 61 publications

(120 reference statements)

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“…There has been growing interest in understanding the impact of guanxi HRM practice on employee outcomes (e.g., Ko and Liu [81]). The primary goal of this study was to expand this field of research by examining how guanxi HRM practice affects employees' occupational well-being.…”

Section: Discussionmentioning

confidence: 99%

Guanxi HRM Practice and Employees’ Occupational Well-Being in China: A Multi-Level Psychological Process

Xie

Tang

2020

IJERPH

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Chinese employees may experience and respond to guanxi human resource management (HRM) practice (e.g., recruiting, selecting, inducting and appraising employees based on personal relationships). Little has been done to examine the linkage between guanxi HRM practice and employees’ occupational well-being. This study investigates the psychological process of how guanxi HRM practice affects employees’ occupational well-being. The theoretical model of this study proposes that employee psychological safety mediates the relationship between guanxi HRM practice and occupational well-being, while collectivistic team culture moderates the relationship between guanxi HRM practice and psychological safety. Multi-level data from 297 employees nested within 42 teams support all hypotheses. This study reveals the cross-level effects of guanxi HRM practice and providing practical suggestions for future research on psychologically safe and healthy work environments.

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Section: Discussionmentioning

confidence: 99%

Guanxi HRM Practice and Employees’ Occupational Well-Being in China: A Multi-Level Psychological Process

Xie

Tang

2020

IJERPH

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“…level of education, certifications, etc.). However, current research attempts to incorporate more multi-dimensional scales and now suggests that education may not be a key to hiring individuals and networks and connections are the most important (Tandon et al, 2018), social capital level within China will have the greatest effect on the hiring decision (Zhang and Lin, 2016), that recruiters use a potential candidate's social capital by measuring their online network's size and composition (Hedenus et al, 2019) and use of guanxi in recruitment practice can overcome the liability of smallness (Ko and Liu, 2017). Our research attempts to support signalling theory through a direct, immediate test of a signal to a reaction by receivers.…”

Section: Introductionmentioning

confidence: 99%

An empirical test of signalling theory

Yaşar

Martin

Kiessling

2020

MRR

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Purpose This study aims to support and extend signalling theory because of information asymmetry. This study also aims to answer the call to further negative signalling and explore immediate reactions to signals, thus alleviating a gap with regard to temporality of signalling. Design/methodology/approach The study used two separate data sources, the S&P 500 and 51,500 pages of the public papers between 1981 and 1999, nearly 20 years of data. Inter-rater reliability, controlled for all macroeconomic announcements identified in the literature, is used, and the data are empirically tested using generalized autoregressive conditional heteroscedasticity (GJR-GARCH) modelling. Findings In accordance with signalling theory and the efficient market hypothesis, the study found that receivers do react to positive signals from a credible insider signaller to obviate information asymmetry. In line with previous research, the study also finds that receivers react much stronger to negative signals. Practical implications Investors, financial managers and top executives responsible for their stock price need to focus on presidential signalling as these directly affect market volatility. In particular, investors and financial managers can predict stock price volatility based upon signals from the president. Originality/value This is the first research study that explores the correlation between presidential signalling and market volatility. This study is important for investors and financial managers.

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“…For instance, consider the role of firm age and size. Age and size lead to two known sources of liabilities in firms, the liability of newness (Bruderl and Schussler, 1990; Fackler et al , 2013) and the liability of smallness (Aldrich and Auster, 1986; Fackler et al , 2013; Ko and Liu, 2017). Liability of newness refers the risks of mortality that new firms face early in its inception.…”

Section: Conceptual Frameworkmentioning

confidence: 99%

“…However, evidence from emerging economies is generally lacking. Secondly, firm level factors such as age and size that lead to the liability of newness (Abatecola et al , 2012) and liability of smallness (Fackler et al , 2013; Ko and Liu, 2017) may constraint the potentially large combinations of resource configurations available to managers.…”

Section: Introductionmentioning

confidence: 99%

Managerial perceptions of the strategic relevance of resources and capabilities and its configuration for firm competitiveness: an exploratory study

Bayon

Aguilera

2020

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Purpose Highlighting the important role of managerial action in resource orchestration, the purpose of this paper is to explore how differences in managerial perceptions about the strategic relevance of resources and capabilities influences the resource configurations in SMEs from an emerging economy context. Design/methodology/approach Using a survey-based instrument that was developed by the Global Competitive project (www.gcp.org), the authors identify 62 Mexican SMEs and perform a cluster analysis based on firm size and age and estimate the competitiveness of the SMEs in each cluster. Findings The results of our cluster analysis indeed suggest the existence of four configurations of SMEs based on the managerial perceptions of the value creating potential of the different resources and capabilities at the firms' disposal. The authors find evidence that managerial perception of the strategic relevance of resources and capabilities at a firm's disposal could influence firm-level competitiveness. Managers of firms that perceive high value or importance to the resources and capabilities, considered the ten resource pillars for competitiveness in this study, are also likely to be the most competitive. Research limitations/implications This study is exploratory in nature and intends to provide an initial and more descriptive analysis of SME competitiveness in an emerging economy context. Additionality, the study does not take into account the effect of industry membership. Originality/value The choice of an emerging economy that are often characterized by asymmetric information and informal rules and regulations provides an original context for an understudied area of research in firm-level competitiveness.

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Overcoming the liability of smallness by recruiting through networks in China: a guanxi-based social capital perspective

Cited by 22 publications

References 61 publications

Guanxi HRM Practice and Employees’ Occupational Well-Being in China: A Multi-Level Psychological Process

Guanxi HRM Practice and Employees’ Occupational Well-Being in China: A Multi-Level Psychological Process

An empirical test of signalling theory

Managerial perceptions of the strategic relevance of resources and capabilities and its configuration for firm competitiveness: an exploratory study

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