Double-edged sword at work: impacts of guanxi human resource management on employee innovative behavior

PurposeThis 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.Design/methodology/approachWe draw from a sample of 398 employees in 81 teams and test the moderated mediation model using multi-level modeling.FindingsThe 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.Originality/valueThe study advances our understanding of the mechanism and boundary condition underlying the double-edged nature of guanxi HRM practices.