Exploring The Role of Guanxi in CSR performance and Knowledge Management of a Stakeholder Network: A Case of iStone, China

Abstract

Background: CSR performance is significantly affected by the degree of knowledge exchange. As Chinese firms have increasingly engaged in CSR activities, significant attention has been paid to how groups of stakeholders share and exchange knowledge resources strategically to increase their CSR performance. A guanxi network is an important facilitator in the mobilization of knowledge in CSR activities. This study explores how stakeholders strategically leverage their guanxi and structural holes to affect the efficacy of knowledge exchange to increase CSR performance. Methods: A mixed-methods research approach was employed to gather data from the stakeholders of a Chinese digital firm iStone. Specifically, 325 questionnaires and social network analyses were collected as well as 55 semi-structured interviews were conducted to test the hypotheses. Results: As a result, structural holes impede knowledge exchange among stakeholders in their guanxi network, but guanxi moderates this impeding effect. In addition, knowledge exchange promotes CSR performance. Conclusion: By developing a mechanism to reveal how stakeholders’ structural hole filling behavior influences their CSR perfor-mance, our study places an emphasis on reciprocal resource exchange which generates several implications for CSR performance enhancement. In addition, by demonstrating how structural hole controllers’ become ‘structural hole fillers’ under the moderating influence of guanxi, this study recognizes the cultural contingency that conditions the effect of structural holes on knowledge exchange. This study also suggests stakeholders to cultivate guanxi with their network members who own yet-to-be-filled structural holes to fill their holes and increase firms sustainable performance by giving renqing, returning renqing, earning mianzi and giving mianzi.