Guanxi, political connections and resource acquisition in Chinese publicly listed private sector firms

Abstract

In this study, we examined the role of guanxi as entrepreneurs’ resource-obtaining mechanism in private sector firms, using a data-set of 184 publicly listed firms in China. We found that guanxi indeed played a positive role that helped private sector firms gain easier access to resources. We also found that guanxi exerted even a greater positive effect on private sector firms’ resource obtaining compared to entrepreneurs’ political participation, due to being the lifeblood of business conduct and social interaction in Chinese culture.

Keywords:

• China
• culture
• guanxi
• political connections
• private-sector firms
• resource acquisition

Funding

This work was supported by the National Social Sciences Foundation of China [grant number 14BGL047].

Notes

1. http://en.people.cn/.

2. http://www.chinadaily.com.cn/.