Path dependence and the evolution of HRM in China

This study explores Chinese HRM history from the late seventeenth century, focusing on the mechanisms of evolution. We use path dependence theory to divide this process into five historical stages: (1) pre-Opium War (before 1840); (2) early modernization period (1840–1917); (3) inter-war period (1918–1949); (4) centrally planned economy period (1949–1979); (5) reform and opening-up (1979-present). Using detailed historical records, we examined how the evolution of HRM in China was shaped by firms’ path-dependent choices in response to ‘path-breaking’ events, according to institutional endowments. Because of the different institutional contexts in which they emerged, HRM institutions in later stages preserved the characteristics of those in earlier ones. This explains the underlying logic that differentiates HRM in China from HRM in other countries and creates disparities within China.