Persistence of informal social networks in East Asia: Evidence from South Korea
Horak, S., & Klein, A. (2016). Persistence of informal social networks in East
Asia: Evidence from South Korea. Asia Pacific Journal of Management, 33(3),
673-694. DOI: 10.1007/s10490-015-9416-1
Link:
https://doi.org/10.1007/s10490-015-9416-1
Abstract
This study investigates the nature and influence of informal social networks in
South Korea (Yongo) by analyzing trust levels and network cohesion.
Predominantly based on studies on Chinese Guanxi, it is widely believed that the
further a nation develops stable formal institutions the more the influence of
informal relations decreases. Given South Korea’s position as a strong economic
powerhouse with established rule of law and democratic institutions, the
influence of Yongo should play an insignificant role today. We find significant
evidence that network cohesion of Yongo is still strong in South Korea, despite
its economic rise. Contrary to expectation, we observe a higher-than-expected
degree of general trust and a continuous commitment to Yongo ties at the same
time. These findings document recent changes in South Korea such as the
beginning of its multicultural opening, whereas informal Yongo ties,
characterized by emotional interpersonal bonds, still remain pronounced.
Foremost, we recommend current beliefs about the correlation of institutional
development and decreasing informal transactions to be reconsidered. We propose
further studies to better understand how informal social networks evolve over
time.
Keywords
Yongo, Korea, Informal institutions, Social networks, Trust, Guanxi