Drawing on a large-scale household survey and in-depth interviews in Guangzhou, China, this research closely examines the formation and operation of homeowner associations (HOAs) and their governance efficacy in urban neighborhoods. This study examines the application of theories on private governance and collective action in the Chinese context and integrates the empirical analyses into a general discussion of state–market–society interactions. The HOA concept in China is far from a form of private governance by Western definition. On the contrary, it generates a societal force to counterbalance the market force brought by property management companies and the state power enforced by the residents’ committee to address homeowners’ political and material needs. Collective action theory is a useful explanatory tool for the HOA’s governance efficacy in China. Yet, the state power and market force also bring a strong imprint on the decision-making of collective action in terms of determining organizational arrangements, the availability and quality of information, and the benefits of collective action.
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