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In Chinese management research, organizational context has become increasingly significant. In their fascinating paper “Location, location, location: Contextualizing organizational research,” Rousseau and Fried (2001) proposed that a particular management approach is ineffective in other circumstances. Of the 302 empirical articles on the Chinese context that Jia et al. (2012) examined and found to be published in six journals between 1981 and 2010, only 14 of these articles thoroughly considered the role of context in concepts’ definition and measurement, construction of inter-concept relationships, and interpretation of internal logic. This demonstrates that significant research in this area of knowledge falls short of offering fresh perspectives and ideas for management practice in the Chinese environment (Tsui, 2006).
Societal networks are inseparable from the realm of economic activity (Granovetter, 2018). Moreover, cultural aspects are always incorporated into economic exchanges. Hence, emotions and feelings need to be addressed in organization management. Renqing refers to a set of social norms that require people to conduct proper social actions in various interpersonal situations, and to express sensitive regard for others (Hwang, 1987). Rooted in Chinese culture, Renqing governs all social interactions and regulates all kinds of Guanxi among individuals, even the formal interpersonal relationships between people in modern organizations (Shi et al., 2011). Further, informal rules can be regarded as being of greater help in achieving efficiency and fairness in enterprises, particularly those operating in China’s transitional economy (Nee & Opper, 2012). Within a company, people always interact with one another—as an example, the relationships between employees and their peers or superiors, which are similar to a network. Hence, a harmonious culture and enterprise coherence depend absolutely on Renqing. That intangible influence will likewise impact specific management operations. Employees will go above and beyond the requirements of their formal job description to uphold their reciprocal relationship with their immediate supervisors (Hwang et al., 2021).
The enterprise system is a crucial component of management that plays a deciding role in resource allocation. Good HR practices positively impact employees’ perspectives on using technology, thus encouraging their innovative behavior (Ahmed et al., 2022). Low-efficiency systems would bring about supply and demand disruption, severe lag, utility failure, and other undesirable outcomes. The Lisbon Strategy in Europe in the early 20th century called for better jobs, and rethought our work and work quality from a social, cultural, and political perspective to broaden our understanding. In practice, enterprises then improve their workplace norms and offer various forms of humanized support to further improve the work quality of employees. Huawei, for instance, has established the role of chief employee health and safety officer to look after the physical and emotional health of employees. The system may not always function efficiently due to cost control, finite rationality, and environmental uncertainty. The embeddedness of Guanxi cannot be overlooked, even though the system plays the role of the Hot Stove Rule in Management (defined as an analogy between breaching company discipline and touching a hot stove—similarly, an employee should be made to realize immediately if he or she is going against norms or rules). Empirical studies have revealed that organizational institutions also influence the Guanxi behavior of employees (Chen, 2020). In fact, Chinese people, who are rooted in Confucian thinking, always work to strike a balance between Renqing and work norms (Zhu, 2009). Accordingly, we argue, Renqing and organizational norms within one’s job environment are two crucial factors that are key to understanding the attitudes and behaviors of Chinese employees.