STATE-OWNED ENTERPRISES (SOE) AS A PROTOTYPE: THE INFLUENCE OF SOE IDENTIFICATION ON GUANXI BEHAVIOR

Received:October 16, 2017  Revised:October 16, 2017

Key Words:  Institutions, Organizational identity, SOE, Guanxi behavior

Author NameAffiliation
Xi Chen* University of Nottingham Ningbo China 

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Abstract:
      This study demonstrates that the socialist institutions and State-Owned Enterprises (SOE) as a unique identity have long-lasting and far-reaching influences on individual behaviors in the transition economy. The privatization reform in China generates diversity in organizational ownership. This study investigates three types of organizations with different degrees of state ownership: state-owned enterprises, public firms, and joint ventures. A survey of 721 employees of 12 organizations demonstrated that identification with SOE is associated with increased guanxi behaviors among the three kinds of organizations. The employees of joint ventures are less identified with SOE and engage in less guanxi behaviors than the employees of state-owned enterprises. Public firms did not show difference from state-owned enterprises in both identity and behaviors, despite different organizational structure and practices installed. The implication is that socialist institutions have been coupled with individual behaviors through the identity they construct. For institutional changes to be successful, structural changes should be combined with identity change to influence individual behaviors.

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