Abstract During the past three decades, there have been a decline in red-hat enterprises and an increase in family business among Chinese private enterprises. This paper employs the concept of Guanxi, which stems from traditional culture and involves two important components-government and family, to investigate the changing patterns of corporate governance in private enterprises. While both government and family Guanxi have played an important role in the development of Chinese private enterprises, there is a distinction between government and family Guanxi within private enterprises in terms of corporate governance. The core argument of this paper is that family Guanxi is replacing government Guanxi within private enterprises. The empirical study of this paper is based on a survey conducted in 2006 over 296 private enterprises in Ningbo China.
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Received: 06 November 2009
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Corresponding Authors:
QIN Zhong
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