Organizations as Communities: The Rise (and fall) of Community Capital in Chinese Firms
2015-05-28 16:10:38
by Yi Han, Peking University

Monday, June 1, 2015 | 2:00pm–3:30pm | Room 333, HSBC Business School Building


Abstract


The phenomenon that many Chinese business organizations incorporate social function units into their structures and employee welfare into their practice, surprisingly, received insufficient attention in organization studies. To theorize an organizational model that originated in state-owned enterprises and diffused to privately owned and foreign-invested enterprises throughout China, we empirically studied this phenomenon and explained it from a sociohistorical perspective. Our research focuses on organizations as units of analysis yet borrows from features of community studies to shed light on Chinese organizational studies and generate a new conceptual schema through which to view organizations as communities. In our statistical analyses of randomly selected manufacturers in twelve representative cities as well as in our case studies of five firms in four cities, we study how institutional and imprinting factors influence Chinese firms to choose between modern enterprise governance and community model of organization. We use the findings of our case studies to show the effects of community capital on employee well-being and organizational sustainability. We also discuss the generalizability of the community model of organizations and some managerial
implications of our research.