This paper develops and tests a theoretical framework to explain the effect of guanxi human resource management (HRM), a unique Chinese cultural phenomenon, on employee innovative behavior.
We draw from a sample of 398 employees in 81 teams and test the moderated mediation model using multi-level modeling.
The results show that guanxi HRM can be perceived by employees as being simultaneously an unethical hindrance that stifles innovative behavior and a strategic challenge that is beneficial for innovative behavior. In addition, the results show that these indirect effects are contingent upon the strength of guanxi HRM.
The study advances our understanding of the mechanism and boundary condition underlying the double-edged nature of guanxi HRM practices.
