Hiring of Personal Ties: A Cultural Consensus Analysis of China and the United States

Xiao-xiao Liu, Joshua Keller and Ying-yi Hong

Management and Organization Review, 2015, vol. 11, issue 1, 145-169

Abstract: Although employees react negatively when employers hire individuals with whom the employers have personal ties, the practice is prevalent worldwide. One factor contributing to the discrepancy between reactions to the practice may be differences in cultural beliefs and institutions regarding perceptions about hiring decisions. To examine cross-national differences in perceptions about hiring personal ties, we conducted a consensus analysis on the perceived fairness, profitability, and overall evaluation of hiring decisions in China and the United States. We find cross-national differences in consensus levels as to whether people believe it is fair or unfair to hire moderately qualified candidates with employer ties (kinships or close friends with the employer) and whether people positively or negatively evaluate the hiring of unqualified candidates with stakeholder ties (ties to business associates or government officials). We also find contrasting areas of consensus about whether hiring unqualified candidates with stakeholder ties is profitable. Implications for research on cultural comparisons of perceptions of hiring practices and guanxi are discussed.

Date: 2015
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