This study aims to theorize and empirically examine how guanxi in Chinese collectivistic culture affects entrepreneurs to leverage the structural holes they occupy when it comes to promoting knowledge transfer.
To examine the hypotheses, this study used a mixed-methods research approach where quantitative questionnaires and social network analyses were used through 365 Chinese entrepreneurs, and qualitative semistructured interviews were conducted through 50 Chinese entrepreneurs.
In a Chinese entrepreneur’s guanxi network, structural holes will impede knowledge transfer among network members, but guanxi will moderate this impeding effect.
By revealing how “structural hole controllers” become “structural hole fillers” under the moderating influence of guanxi in Chinese collectivistic culture, this study recognizes the different roles that persons who occupy a structural hole play in different situations, which advances structural hole theory. In addition, by exploring how entrepreneurs orchestrate these structural holes to create a strong guanxi network that can be infinitely extended, this study reveals a means to achieve both advantages of bonding and bridging social capital simultaneously, which generates a theoretical contribution to social capital integration.
This study suggests Chinese entrepreneurs to cultivate guanxi to improve their needs in decision-making by giving renqing, returning renqing, earning mianzi and giving mianzi.
By showing how Chinese entrepreneurs leverage their guanxi and structural holes to facilitate knowledge transfer, this study identifies the critical entrepreneurial behavior that promotes business development, thereby contributing to the literature of knowledge management, entrepreneurship and social network.
