Abstract
Existing high performance work system (HPWS) research has rarely considered cultural influences. This study investigates the relationships between guanxi, HPWS and employee attitudes in China. A data-set consisting of 226 employees in a Chinese state-owned enterprise in the railway sector was used to test the hypotheses. Using structural equation modelling as an analytical tool, we found that guanxi was positively related to HPWS and trust. Similar to research in the Western context, HPWS was found to be positively related to trust and job satisfaction. Moreover, the results also revealed that HPWS mediated between guanxi and both trust and job satisfaction. Theoretical and practical implications are both discussed.
Highlights
In this article, we explore high-performance work systems (HPWS) in a Chinese State Owned Enterprise (SOE)
There is limited extant research but, as with job satisfaction, we suggest that guanxi will positively influence employee attributions about HR practice such as training and career (Huang, 2008) job security (Bedford, 2011) and involvement (Purcell & Hutchinson, 2007), Positive attributions about and experiences of HR practices, that is, these practices serve to support employees, will increase organisational trust whereby employees perceive the employer to have their best interests at heart
While Western-style high performance work system (HPWS) can be effective in China, recognition of cultural context is vital: guanxi and HR practice are both important in influencing attitudes related to improved organisational outcomes
Summary
We explore high-performance work systems (HPWS) in a Chinese State Owned Enterprise (SOE). Our specific aim is to investigate the influence of guanxi, an important feature of Chinese culture, on employee perceptions of HR practice and employee attitudes. As China’s importance in the global market increases following its shift from a planned to market economy, much attention has been paid to the transfer of Western HRM practices to Chinese workplaces (Cai, Morris, & Chen, 2011). It is widely recognised that this transfer is not unproblematic (Cooke, 2005), especially in respect of cultural context and guanxi (Fu & Kamenou, 2011). Guanxi describes relationships that emphasise expected reciprocal social practices within a person’s network of social connections (Hwang, 1987) and includes many traditional Chinese values, such as collectivism, family, interpersonal relationships, respect for age and authority, harmony and avoidance of conflicts (Wong, Wong, & Wong, 2010).
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