Abstract
Favor exchange is known to be essential for building personal relationships (guanxi) in China. In two studies, we explore the effect of supervisory favors on subordinates' trust in supervisor; we further explore how subordinates' attributions of supervisory favors affect trust in supervisor independently and in interaction with supervisory favors. We find evidence that supervisory favors has a positive effect on trust in the supervisor; merit attribution of supervisory favors has a positive effect on trust in the supervisor but personal favor attribution has a negative effect; merit attribution also moderates the effect of supervisory favors such that supervisory favors has a stronger positive effect on trust in the supervisor for subordinates who make higher merit attribution than for those who make lower merit attribution. Theoretical and practical implications are discussed.