“…Given Chinese traditional culture and its special social background (Li, Zhou, et al, 2019), Guanxi plays a significant role in China's business activities (Zhan et al, 2018), even occupies the dominant position (Lovett et al, 1999). Guanxi is conducive to strengthening cooperation between organizations (Xue et al, 2016;Xue et al, 2018), the cooperation between public sectors and firms for instance. In Guanxi, the public sector, boasting a high reputation, can provide firms with a guaranteed source of demand (Simcoe & Toffel, 2014), and award contracts to firms, for which it is an ideal partner for firms.…”