Why is guanxi so important in China?

Guanxi relationships support high levels of personal trust and are associated with higher levels of firm performance in China. New-venture investors often rely on guanxi to reduce the many uncertainties they face in this business environment and to improve their business decisions (Zhuang, Xi, and Tsang, 2010).

What is guanxi strategy?

Guanxi loosely translates as personal connections, relationships or social networks. It implies trust and mutual obligations between parties, and it operates on personal, familial, social, business and political levels. Those on the outside cant get in, unless they have guanxi with someone on the inside.

What is Danwei China?

Work units, called danwei, are one of the principal territorial forms used to. organize Chinas urban population. These enclosed spaces are the socio-spatial. units in which the livelihood and domestic and social activities of its members are. carried out.