Structural Replacement or Structural Inducement : Government Ties of Chinese Business Executives

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

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Original languageEnglish
Pages (from-to)54-70
Journal / PublicationCanadian Journal of Administrative Sciences
Issue number1
Online published19 Mar 2009
Publication statusPublished - Mar 2009


We suggest that the structural replacement thesis, which proposes that managers in Chinese nonstate-owned enterprises (NSOEs) possess more government ties than managers in Chinese state-owned enterprises (SOEs), is theoretically incomplete because it considers only the motivation of managers of NSOEs. The extensiveness of social ties is influenced also by the capability and opportunity for social actors to cultivate these social ties. We introduce the structural inducement thesis, which holds that SOE managers have more government ties than do NSOE managers, as an alternative to the structural replacement thesis. Our analysis of 250 Chinese managers ' ties supports this structural inducement thesis. The theoretical and applied implications of these findings are discussed. Copyright © 2009 ASAC.

Research Area(s)

  • Chinese business managers, Government ties, Social tie extensiveness, Structural inducement, Structural replacement