Abstract: Social networks are an important factor affecting socioeconomic behaviors and outcomes. Guanxi， a form of social networks， is deeply rooted in the Chinese culture and it permeates every aspect in the economy and social life. Based on the indepth interviews of the urbanemployment seekers， this paper analyses the effectiveness of jobseekers’ utilization of their guanxi in the process of obtaining employment and the boundaries of its impact， and its theoretical significance in the institutional context of the labor market reform as well. The results indicate that， with the ongoing of the market reform， guanxi networks are still playing a significant role in the process of obtaining employment but its impact is a function of the ownership type of the work unit， the competition intensity in the labor market， and the skill requirements of the position. The impact boundaries of guanxi networks are closely tied to the institutions in a society in transformation. The concept of “guanxi networks” in Chinese society cherishes much richer meanings than the concept of “social networks” in the Western academia.

Key words: guanxi networks, institutional context, job search, labor market