In this commentary we reflect on Shaalan, Eid, and Tourky's (2022) article in which they investigated the Chinese concept and practice of guanxi in the Middle East,1 a region in which wasta represents the common way of informal networking.2 While we encourage and welcome research into informal networks, we have serious concerns about the conceptual and methodological approaches taken by Shaalan et al. (2022) in investigating informal networks in the Middle East and explain herein why we do not believe guanxi should have been used in place of wasta.

Chinese domestic rural–urban migrant workers have played a substantial role in economic development since the late 1970s. This article makes an attempt to establish a two-period hiring model interpreting the impact mechanism of social networks on migrant workers’ wages. The findings indicate that the extension of social networks of both firms and workers facilitates a decrease in the information gap between them and improves extra common benefits to both.

Migrant construction workers are among the most vulnerable working populations in China as they are prone to facing the problem of wage arrears under the multi-tier subcontracting system. Based on ethnographic research of migrant construction workers in Tianjin, Shenzhen, Nanchang and Shaoguan, we examine workers’ divergent responses to wage arrears. While extant literature focuses on the positive role of informal networks in facilitating collective action, our findings indicate that the network structure between labour subcontractors and migrant workers plays a key role in enabling or constraining labour protests. We identify two network structures: the satellite network – characterized by arm's-length relationships between subcontractors and clusters of workers; and the spider-web network – characterized by strong relationships between subcontractors and their workers. We found that workers in satellite networks were prone to stage protests over wage arrears, but those in spider-web networks never held collective actions when facing the same problem. We argue that strong guanxi is a double-edged sword for the mobilization of labour protests and that workers’ responses to wage arrears are mediated through the network structure. Future studies may further scrutinize the role of a social network and its operating mechanisms in shaping workers’ working conditions and labour politics.

Relationships are widely recognized as key to business success in the form of both informal interpersonal networks and formal organizational relationships. While Chinese personal networks (guanxi) have attracted scholars’ interest, the concept has not been fully investigated or understood in other contexts, especially the Middle East, where personal networks fulfill some of the same roles. The underlying socio-cultural formulae of the distinctive cultural dimensions that influence relationship formation in the Middle East also remain under-explored. This research therefore investigates the dimensions of guanxi-type relationships in the Middle East and introduces a new model integrating these relationships into the existing relationship marketing framework, enabling firms to harness personal networks for organizational gain, in turn generating customer satisfaction and retention. Using empirical data from a survey of 637 hotel guests in 17 countries – drawn from a unique target population of guests introduced to Middle Eastern hotels via personal relationships – we show how guanxi-type relationships influence organizational relationships and improve satisfaction and retention. Our significant contributions to theory and practice include extending a holistic understanding of guanxi, enhancing knowledge of its dimensions in the Middle East, and providing managers with clear evidence for a hybrid system of guanxi-type and organizational relationships.

Legal scholars tend to understand dignity as an intrinsic value that each individual gains at birth. This article aims to rethink dignity from a relational perspective. As dignity is highly dependent on other people’s judgement and evaluations in China, I use “relational dignity” to stress the precarious and relational nature of dignity in societies in which people attach great importance to guanxi networks. I discuss how relational dignity and state law interact to shape leftover women’s choices in marriage and childbearing. The precarious and relational nature of dignity motivates leftover women to follow dominant social norms in order to fit in. As a result, it reinforces state law’s discrimination against unmarried women and single mothers. On the other hand, the rubber-stamp quality of state law enables leftover women to use legal recognition to win societal recognition and attain relational dignity.

Informal networking can be seen as a positive activity with beneficial outcomes for individuals, firms, and society as a whole, but informal networking can also lead to collusion, cliques, nepotism, and other forms of unethical or corrupt conduct – largely related to research on emerging markets. To date, the construction of informal networks and their cultural intertwinement and development have not been a focus of international management and organization studies, a gap that this special issue seeks to address. This special issue contributes to a better understanding of the dynamics of informal networks and their ambivalence, in which the same networks have different modes of operation and have positive and negative sides intermittently or simultaneously. We demonstrate the context in which informal networks operate, highlight their complexity, and encourage dialogue among scholars studying informal networks in a variety of countries. Using a context-based and comparative perspective allows us to conceptualize informal networks in a more integrated and balanced way. Understanding the workings of informal networking – known variously as guanxi, yongo, jentinho, wasta, and blat – in culturally specific settings, places Western values, social structures, and ideals of behavior in perspective and tests Western-centered assumptions, narratives, and theories. Because informal networking is a conventional way of conducting business in many countries, as depicted in this special issue, defining the bright (positive) and the dark (negative) sides of informal networks is critical for responsible management and business success at multinational corporations.

This article offers a synthesis of understandings of wasta, seen as a form of social network prevalent in the Arab Middle East. Whilst there has been increasing interest in this practice, research remains fragmented and has been criticised for its limited theoretical rigor. To address this issue, a systematic review of peer-reviewed journal articles exploring wasta published between 1993 and 2019 was conducted. We analysed the identified papers according to the theoretical lens from which wasta was viewed, creating a bridge between a theoretical focus on the macro aspect of wasta and an alternative focus on its micro aspects, leading to the development of a holistic model of wasta. The model also helps us to understand the complexity of wasta, both as the network itself and as the social ties that exist among its members, and sheds light on the complex nature of the role and interactions of the wasta. The findings respond to calls for more holistic and inclusive research to inform social networks research and bridge the micro–macro divide. This article offers recommendations to future researchers to build on the holistic and emic approach to wasta research adopted here.

Previous research has debated whether guanxi persists or declines with the development of formal institutions. This study addresses this debate by investigating how the development of formal institutions in China's state-owned organizations influences employees’ guanxi behavior. Building on institutional logics theory, I propose that guanxi behavior is a reaction to the socialist institutions adopted by state-owned enterprises (SOEs) and is associated with the collective identity of SOEs. Thus, employees’ identification with SOEs is the mechanism that influences their guanxi behavior. A survey of 721 employees from 12 organizations compared guanxi behavior across three types of organizations with different degrees of state ownership: SOEs, public firms, and joint ventures. The results showed that the employees of joint ventures identify less with SOEs and engage in less guanxi behaviors than do SOE employees. The employees of public firms still identify with SOEs, and their guanxi behavior did not differ from that of SOE employees. Identification with SOEs mediated the effect of organizational type on guanxi behavior, whereas formalization did not. Therefore, the development of formal institutions does not necessarily decrease guanxi behavior, and its effect depends on whether the collective identity underlying guanxi is changed. This study has important implications for guanxi research, institutional logics theory, and transition economies.

Guanxi is one of the most popular topics in Chinese and Western scholarship concerning social ties in China. However, several problems in research on guanxi persist, and multiple debates are still ongoing without much consensus in sight. This study has two goals. First, we offer a systematic review of the current literature on guanxi, especially by differentiating guan dyads from xi networks. This reconceptualization of guanxi enables us to clarify the concept of guanxi by differentiating its two dimensions. Second, based on this literature review, we propose a redirection of future research on guanxi such that guan dyads and xi networks are not examined in isolation; rather, their holistic and dynamic interaction is the most fruitful avenue for future research, especially the four mechanisms of their interaction. The proposed reconceptualization and redirection are our two contributions to the literature.

How does China promote its military officers? We present a qualitative study on the determinants (connections versus performance) of the selection of military officers. Drawing on 48 in-depth interviews with serving and retired military officers, we argue that the inability of the rule-based personnel system to assess candidate performance (professional competence and political integrity) leads to the rise of the informal institution of guanxi – a Chinese version of personal connections – in promoting military officers. Guanxi both substitutes for and competes with the formal personnel system. Information received through guanxi networks is used by superiors to evaluate subordinates’ professional competence and political integrity. Guanxi is also used by corrupt officers to distort democratic procedures and facilitate the buying and selling of military positions. We conclude that the co-existence of a rule-based personnel system and guanxi leads superiors to promote competent candidates within their guanxi networks.

This paper provides an analytical review of the social science literature on guanxi. The focus of this review is on the prevalence and the increasing significance of guanxi during China's post-1978 reforms, which were implemented to move the country towards a market economy. Since then, researchers have engaged in debates on what guanxi actually means to Chinese people in the past and today, how it has been adaptive to ongoing institutional transformations, and why its influence in economic, social, and political spheres can stabilize, increase or decrease with market reforms and economic growth. The author provides a synthesis of these debates before offering a theoretical framework which provides an understanding of the dynamics of guanxi through the changing degrees of institutional uncertainty and market competition. Survey findings on the increasing use of guanxi in labour markets from 1978 to 2009 are presented to illustrate the usefulness of this framework. In the conclusion, the author argues that guanxi is a five-level variable, and that the nature and forms of guanxi influence are contingent upon whether guanxi is a tie of connectivity, a sentimental tie, a sentiment-derived instrumental tie, an instrumental-particular tie, or an obligational tie that facilitates power and money exchanges. This five-level conceptualization is aimed at advancing future scholarship of guanxi in China's rapidly changing society.