Whitman School of Management at Syracuse University
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Abstract Details

Small Business Survival in China: Guanxi, Legitmacy and Social Capital
Vol. Volume 10, Number 1 April/2005

A. Elliott Carlisle and Dave Flynn
Previous research suggests that guanxi "costs" are significantly higher for private Chinese enterprises versus all other enterprise types, i.e., state, township and village (TVE), domestic and foreign enterprises. Also, consistent with its cultural context, guanxi is considered to be equally important in business as it is in life for all types of Chinese enterprises. Herein, the discussion is extended to describe the concept of guanxi as a means of garnering social capital in order to maintain legitimacy. Furthermore, some practical means are suggested for entrepreneurs and small business owners to build a necessary foundation for survival.