Challenges confronting the ‘One Belt One Road’ initiative: Social networks and cross-cultural adjustment in CPEC projects

•The current research investigates the challenges confronting cross-cultural adjustment among the Chinese and Pakistani employees working on CPEC projects.•We highlight the importance of language proficiency, social networks, networking behaviour (guanxi and hawala), and cultural sensitivity in employee adjustment, which would enhance the overall performance of CPEC projects.•The paper contributes to the understanding of contextual and condition-driven networking behaviour for cross-cultural adjustment, particularly the need for cross-cultural networking.•We contend that managers in cross-cultural/cross-border projects should encourage cross-cultural mentoring and facilitate cross-national networks to increase the efficacy of such collaborative projects. The China Pakistan Economic Corridor (CPEC) is the flagship program of China’s ‘One Belt One Road’ initiative, created to boost economic cooperation between China and Pakistan. The aims of economic efficiency and enhancement of national interests are widely acknowledged in the literature. Yet, critical issues of developing the capabilities of cross-cultural management in general, and cross-cultural adjustment through cross-cultural understanding and network building in particular, have been largely overlooked. The current research investigates the challenges confronting cross-cultural adjustment among the Chinese and Pakistani employees participating in the CPEC projects. Through a rigorous analysis, we highlight the importance of acculturation experience, cross-cultural networking (i.e. heterophilic), networking behaviour (i.e. guanxi vs. hawala), and factors influencing cross-cultural adjustment, which would enhance the overall performance of the CPEC projects. Our aim is to contribute to the understanding of contextual and condition-driven networking behaviour for cross-cultural adjustment, particularly the need for cross-cultural networking. We contend that organisations in cross-cultural/cross-border projects should encourage cross-cultural mentoring and facilitate cross-national networks to increase the efficacy of such collaborative projects.