How does the concept of guanxi help foreign managers do business in China?
Jiang, N. (Katie). (2009). How does the concept of guanxi help foreign managers do business in China? (Thesis, Master of Management Studies (MMS)). The University of Waikato, Hamilton, New Zealand. Retrieved from http://hdl.handle.net/10289/3276
Permanent Research Commons link: http://hdl.handle.net/10289/3276
China's fast growing market potential is undoubted. However entering China has never been an easy task for foreign firms and business practitioners. Not only the complex market environment, but also the complex business relationship networks in another word, Guanxi make it difficult for foreign firms to operate profitably. The purpose of this study is to explore some major issues of Guanxi concept, and to provide some practical solutions for foreign managers to use when dealing with Guanxi in their businesses. Both qualitative research and quantitative research were carried out. The author interviewed nine Chinese and foreign managers and surveyed hundreds of respondents in several industries. The findings confirm Guanxi's important role in Chinese society and business world. This study also discovers some major practical issues that could influence quality of Guanxi, either positively or negatively, which gives foreign managers great direction on initiation and maintenance of their Guanxi network. The findings suggest that learning some Chinese culture and having a reliable Chinese partner have positive effect on building Guanxi networks. However, this study shows a quite different result on future role of Guanxi compared with existing literatures: the role of Guanxi would either not change, or increase in China in the future. In addition, foreign managers need to be aware that Guanxi is indeed important, but it does not mean everything in market activities, the core marketing principles are always essential in any market, including China.
The University of Waikato
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