Extra-organizational guanxi practices, intra-organizational guanxi practices and trust in management in Chinese firms: Case in Chinese machine manufacturing

Grounded on the background of Chinese firms, this article highlights both the interaction of different forms of guanxi practices and their functionary mechanism on employees' trust in management. Based upon the interview data from China, we both uncovered the positive correlations between different forms of managerial guanxi practices classified in this study and verified the existence of negative effect of managerial guanxi practices in employees' trust in management. Such relationships, even though we controlled the smallness and newness of our sample according to former researches, are statistically significant, with different representations in various ownership states and saliently affected by outcome favorability. As the explorative study in this topic, this article is expected to be helpful in both business practices and further research as implied in last part of this paper.