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How Organizations Engage with External Complexity: A Political Action Perspective
John Child University of Birmingham, UK,j.child@bham.ac.uk
Suzana B. Rodrigues Erasmus University, The Netherlands
Abstract
This paper offers a new insight into how organizations engage with external complexity. It applies a political action perspective that draws attention to the hitherto neglected question of how the relative power organizational leaders enjoy within their environments is significant for the actions they can take on behalf of their organizations when faced with external complexity. It identifies cognitive and relational complexity as two dimensions of the environment with which organizations have to engage. It proposes three modes whereby organizations may engage with environmental complexity that are conditioned by an organization’s power within its environment. It also considers the intention associated with each mode, as well as the implications of these modes of engagement for how an organization can learn about its environment and for the use of rationality and intuition in its strategic decision-making. The closing discussion considers how this analysis integrates complexity and political action perspectives in a way that contributes to theoretical development and provides the basis for a dynamic political co-evolutionary approach.
Organizational Behavior and Human Decision Processes
 Article in press 
ISSN: 07495978
CODEN: OBDPF
DOI: 10.1016/j.obhdp.2011.06.001
Document Type: Article in Press
Source Type: Journal

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Embedding social networks: How guanxi ties reinforce Chinese employees' retention
Hom, P.W.a , Xiao, Z.b  
a  Department of Management, W.P. Carey School of Business, Arizona State University, Tempe, AZ 85287-4006, United States
b  China Europe International Business School, Pudong, Shanghai 201206, PR China
Abstract
Going beyond traditional inquiry into social support from local organizational constituents, this project examined how diverse resources from mutually affiliated contacts within and beyond local work environs boost propensity to stay in firms. We deployed name generator and network closure index to more fully assess guanxi networks in China, which comprise strong, dense, and multiplex ties. Specifically, we tested how closed guanxi networks promote job loyalty among Chinese nationals, while investigating how high-commitment human resource management (HRM) systems moderate network effects. We collected egonet data from 417 employees in four high tech firms in China. Hierarchical linear modeling revealed that guanxi network closure increases propensity to stay, whose effects high-commitment HRM reinforce. © 2011 Elsevier Inc. All rights reserved.