Careers Inside Organizations: A Comparative Study of Promotion Determination in Reforming China

Yang Cao

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China's Socioeconomic Reforms and Governance Human Resource and Talent Management Management and Organizational Studies

Abstract

Mobility under state socialism has been known for the ubiquitous presence of political criteria in determining career opportunities, but how it evolves in the postsocialist era has yet to be well understood. This article examines the impact of market reform on promotion determination in Chinas hybrid urban economy I propose an institutional and organizational explanation, highlighting the difference in resource dependence between firms and nonprofit organizations. I predict that in firms that depend significantly on market (vis-à-vis the persisting communist party/state) for resources, human capital plays a greater role in determining promotions, while political credential loses ground. Comparative analysis of data collected in two Chinese cities in 1994–95 produces provisional support to these predictions.

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1977Institutionalized Organizations: Formal Structure as Myth and Ceremony 1991Institutions, Institutional Change and Economic Performance 2011External Control of Organizations: Resource Dependence Perspective 1976Markets and Hierarchies: Analysis and Antitrust Implications.1993The New Institutionalism in Organizational Analysis.1978Men and Women of the Corporation.1974Schooling, Experience, and Earnings 1964Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education

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2010Organizational Approaches to Inequality: Inertia, Relative Power, and Environments 2002Postsocialist inequalities: The causes of continuity and discontinuity 2008Economic Sociology and New Institutional Economics

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