This study explores how Chinese private-company executives rely on personal connections (guanxi) as substitutes for formal institutional support in a society with underdeveloped legal frameworks. The research uses interview data from China to test the argument that executives in private companies, which lack the structural support of state-owned or collective-hybrid companies, develop personal relationships to obtain resources or protection not otherwise available. Guanxi, or personal connections, are crucial in China, where the legal and regulatory environment is unstable, and trust is essential for business dealings. Private-company executives are more likely to rely on guanxi for protection, have more government connections, give more unreciprocated gifts, and trust their connections more than executives in state-owned or collective-hybrid companies. The study hypothesizes that private-company executives will report that their business connections are more important to their success, more useful as a defense against threats, and characterized by greater trust than executives in other company types. It also hypothesizes that private-company executives will give more nonreciprocated gifts to their business connections. The study finds support for these hypotheses, showing that private-company executives rely more on guanxi for protection and have deeper, more trusting relationships with their business connections. The research also highlights the importance of gift-giving in building and maintaining guanxi. Private-company executives are more likely to give nonreciprocated gifts to their business connections, reflecting their reliance on guanxi as a substitute for formal institutional support. The study concludes that guanxi plays a critical role in business relationships in China, where the legal and regulatory environment is unstable, and trust is essential for business dealings. The findings have implications for understanding the role of personal relationships in business and the importance of guanxi in different institutional contexts.This study explores how Chinese private-company executives rely on personal connections (guanxi) as substitutes for formal institutional support in a society with underdeveloped legal frameworks. The research uses interview data from China to test the argument that executives in private companies, which lack the structural support of state-owned or collective-hybrid companies, develop personal relationships to obtain resources or protection not otherwise available. Guanxi, or personal connections, are crucial in China, where the legal and regulatory environment is unstable, and trust is essential for business dealings. Private-company executives are more likely to rely on guanxi for protection, have more government connections, give more unreciprocated gifts, and trust their connections more than executives in state-owned or collective-hybrid companies. The study hypothesizes that private-company executives will report that their business connections are more important to their success, more useful as a defense against threats, and characterized by greater trust than executives in other company types. It also hypothesizes that private-company executives will give more nonreciprocated gifts to their business connections. The study finds support for these hypotheses, showing that private-company executives rely more on guanxi for protection and have deeper, more trusting relationships with their business connections. The research also highlights the importance of gift-giving in building and maintaining guanxi. Private-company executives are more likely to give nonreciprocated gifts to their business connections, reflecting their reliance on guanxi as a substitute for formal institutional support. The study concludes that guanxi plays a critical role in business relationships in China, where the legal and regulatory environment is unstable, and trust is essential for business dealings. The findings have implications for understanding the role of personal relationships in business and the importance of guanxi in different institutional contexts.