Reproduction of Danwei Institutional Features in the Context of China's Market Economy: The Case of Haidian District's High-Tech Sector

Abstract

The literature on the political and economic transition from Communism, developed largely in the context of Eastern Europe and the Soviet Union, has been dominated by the idea that horizontal forms of social and political association displace the vertically structured, segmented forms of social control and organization which are characteristic of traditional Communist systems. Social forces, by linking together in broadly based, horizontally structured associations such as industry-wide labour unions and associations of private entrepreneurs, are able to break out of the vertical structures of control and strengthen their collective bargaining position vis-a-vis the state. New associations of entrepreneurs, workers, religious organizations and eventually political parties emerge and coalesce and further strengthen the power of civil society against the state. Economic liberalization is seen as a particular catalyst to this process. Market reforms weaken the state's centralized control and enable social forces to mobilize autonomously.

and social inequality in contemporary urban ChinaDanwei

“…Interestingly, this is more than a matter of inertia in language use. Evidence shows that danwei as an institution is reproduced even in the private sector, as danwei -like institutional features could be observed even in newly emerging sectors such as privately owned high-tech firms in urban China (Francis 1996), or even industrialized villages in rural China (Lin 1995). Thus, danwei are likely to continue and to play an important role no matter what economic system takes shape, including the private sector.…”

Redistribution, Growth, and Inclusion: The Development of the Urban Housing System in China, 1949-2015

“…The Chinese redistributive mechanism was built on a centralized danwei hierarchy that combined productive and administrative functions (see Womack, 1991;Francis, 1996;Perry, 1997). In this system, the planning department of the central government determined industries' inputs and their allocation of output.…”

The transfer of organizational practices: a diachronic perspective from China

“…In the Chinese context, several studies indicate factors that constrain change over time (Francis 1996;Goodall and Warner 1997;Warner 1999). Francis (1996) reports that aspects of the danwei (work unit) system's institutional legacy, such as provision of employees housing and medical care, are reproduced in non-state high-tech firms.…”

“…Francis (1996) reports that aspects of the danwei (work unit) system's institutional legacy, such as provision of employees housing and medical care, are reproduced in non-state high-tech firms. She attributes this to the persistence of deeply embedded social, governmental and cultural practices and norms that underpinned danwei, these form normative expectations that 'may be internalized and carried into new organizational contexts' (p. 843).…”