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Article
Publication date: 1 June 1999

E. Alan Buttery and Y.H. Wong

Relationship marketing is currently an important topic in the marketing literature. The use of relationships in marketing and business generally varies around the world. In the…

4787

Abstract

Relationship marketing is currently an important topic in the marketing literature. The use of relationships in marketing and business generally varies around the world. In the Chinese‐based economies much is made of Guanxi which provides the relationship building for interpersonal relationships. In this paper the foundations of Guanxi are described in the form of a four‐stage model. As Guanxi is a particular form of relationship in the Chinese culture and underpins much of the business carried out in China‐based economies, it is compared to relationship building in Western cultures. The paper adds to the literature on relationships and how they are developed and is important to the literature on relationship marketing applied in the Chinese context. It also helps the practitioner, who wishes to develop relationships in Chinese‐based economics, by providing guidelines on how the Chinese like to do business.

Details

Marketing Intelligence & Planning, vol. 17 no. 3
Type: Research Article
ISSN: 0263-4503

Keywords

Article
Publication date: 11 January 2016

Fu Jia, Ruihong Gao, Richard Lamming and Richard Wilding

This paper aims to identify problems caused by cultural differences between Japan and China that face supply chain managers by applying Japanese-style supply management practices…

2191

Abstract

Purpose

This paper aims to identify problems caused by cultural differences between Japan and China that face supply chain managers by applying Japanese-style supply management practices within supply networks in China and present solutions to this problem.

Design/methodology/approach

A single, longitudinal case study conducting two waves of data collection (i.e. interviews and observation) plus the collection of much archival data was performed. It goes beyond the dyad by examining supply management of a Japanese company’s supply chain up to three tiers in China.

Findings

The four supply cultural differences between Japan and China, which caused the cultural clashes between JVCo and some of its suppliers were revealed and a model of adaptation of Japanese supply management to the Chinese business system was developed. Adaptation involves creating new supply management practices out of selective adaptation, innovation and change of existing Japanese and Chinese supply management practices rooted in different Japanese, Chinese and Western cultures. A list of organisational factors affecting the adaptation has also been provided.

Research limitations/implications

Due to the adoption of a single case study method, caution should be given to generalising the findings to all Japanese firms.

Practical implications

The Japanese, Chinese and Western managers were provided with insights on how to mitigate the problems caused by cultural differences within supply relationships in China and some innovative ideas on how managers from all three cultures could blend the elements of the three cultures to form a hybrid culture and reduce cultural clashes.

Originality/value

This is one of the few attempts to study the transfer of Japanese supply management practice to China. Organizational theory (i.e. transfer of organizational practice and hybridization) is applied and provides a robust framework to explain the supply management practice. This study also answers the call for a global supplier relationship management paradigm.

Details

Supply Chain Management: An International Journal, vol. 21 no. 1
Type: Research Article
ISSN: 1359-8546

Keywords

Article
Publication date: 1 December 2003

Gerry Batonda and Chad Perry

This paper examines the impact of culture on inter‐firm network development in international marketing. Three research questions about the influence of culture on network…

8795

Abstract

This paper examines the impact of culture on inter‐firm network development in international marketing. Three research questions about the influence of culture on network development were developed from the literature to focus case data collection and analysis. The data were collected from in‐depth interviews with network managers/owners of firms networking with other overseas firms entering into Australian and Asian markets. Differences and similarities between how overseas Chinese and Australian cultures impact on network development and strategies for developing and maintaining quality and long‐term relationship in cross‐cultural networks were identified. Implications for practice emphasise the importance of cultural adaptation.

Details

European Journal of Marketing, vol. 37 no. 11/12
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 1 May 2005

T.K.P. Leung, Kee‐hung Lai, Ricky Y.K. Chan and Y.H. Wong

This study incorporates two Chinese cultural variables guanxi (personal relationship) and xinyong (personal trust) with other relational variables that are well defined in the…

7926

Abstract

Purpose

This study incorporates two Chinese cultural variables guanxi (personal relationship) and xinyong (personal trust) with other relational variables that are well defined in the west, i.e. supplier competence, commitment, conflict handling and satisfaction to see how they generate partnership relationship in a sino‐western relationship marketing context.

Design/methodology/approach

Research objectives are achieved through a combination of model building, quantitative design, testing of hypotheses using AMOS and analysis of findings. The subject scope is imbedded within cultural impact on relationship marketing in a sino‐western context.

Findings

This study finds that Western suppliers must be competent in product knowledge, market development, and adaptation to buyers' requirements to resolve conflicts in order to establish their xinyong with the buyers. Competence allows suppliers to show psychological commitment and establish guanxi with the buyers. It also shows that guanxi has a stronger influence on xinyong than on satisfaction. Suppliers should use guanxi to generate buyer's perception on xinyong whilst maintaining a reasonable level of buyer satisfaction with their products and services. Also, relationship between xinyong and satisfaction is not significant. A buyer's satisfaction on the supplier's product and services does not necessarily mean that this buyer perceives the supplier having xinyong because Chinese mix (up) business with personal relationships together and sometimes they make trade‐off between them!

Research limitations/implications

This relationship study was conducted in a single‐product relationship context within the clothing industry in the PRC environment and therefore, its findings may not be generalised to other industry. Future Chinese relationship study should increase the sample size so as to cover more industries to allow comparison across industries. This is especially valid between a manufacturing and a service‐based industry. A service‐based industry may even emphasize more on guanxi and xinyong because of its intangible aspects! Future research should include the xinyong constructs, the concepts of face and reciprocity. To what extent these important Chinese cultural values affect satisfaction and xinyong have not been determined.

Practical implications

Effective conflict handling skills and guanxi are vital to formulate a xinyong positioning strategy. A supplier must be competent in product knowledge, market development skills, and adapt to a buyer's requirements to resolve conflicts with the buyer to establish xinyong.

Originality/value

This research is an initial attempt to establish the relationship between guanxi, xinyong and partnership relationship and generates a new research area in Chinese relationship marketing.

Details

European Journal of Marketing, vol. 39 no. 5/6
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 7 August 2017

Minna Jukka, Kirsimarja Blomqvist, Peter Ping Li and Chunmei Gan

The purpose of this paper is to explore how Chinese and Finnish managers in cross-cultural supply-chain relationships evaluate their business partners’ trustworthiness and…

Abstract

Purpose

The purpose of this paper is to explore how Chinese and Finnish managers in cross-cultural supply-chain relationships evaluate their business partners’ trustworthiness and distrustworthiness.

Design/methodology/approach

Representatives of two Finnish companies and their Chinese and Finnish suppliers were interviewed to collect qualitative data from 23 managers.

Findings

The Chinese managers emphasized relationship-specific, personalized trustworthiness. They highlighted personalized communication and benevolence, which manifested in respect and reciprocity, rooted in the Chinese notion of “guanxi” as personal ties. In contrast, the Finnish managers’ view of trustworthiness was more associated with depersonalized organizational attributes. They emphasized the dimension of integrity, especially promise-keeping. In addition, tentative signs of trust ambivalence, as a balance between trust- and distrust-related factors, were identified for both the Chinese and the Finns.

Research limitations/implications

Due to the exploratory nature of this study the validity of the findings is limited to these data and context. Future studies could explore other national contexts as well as the effects of industry, market position, and position in the supply chain.

Practical implications

The findings of this study bring a valuable understanding of the potential pitfalls and unique challenges in cross-border inter-firm transactions. These can enhance inter-firm trust building in a cross-cultural context.

Originality/value

This study enriches the view of trust as a holistic process of simultaneous evaluation of both trustworthiness and distrustworthiness. In this process, trust ambivalence could serve as the intermediate construct between trust and distrust. These two contrary yet complementary opposites constitute a duality to be managed from the perspective of yin-yang balancing.

Details

Cross Cultural & Strategic Management, vol. 24 no. 3
Type: Research Article
ISSN: 2059-5794

Keywords

Article
Publication date: 16 February 2010

Michael Trimarchi, Peter W. Liesch and Rick Tamaschke

The purpose of this paper is to study compatibility variations in buyer‐seller relationships between Mainland Chinese firms and Hong Kong Chinese buyer firms that act as…

1768

Abstract

Purpose

The purpose of this paper is to study compatibility variations in buyer‐seller relationships between Mainland Chinese firms and Hong Kong Chinese buyer firms that act as intermediaries to markets in the West.

Design/methodology/approach

Data are drawn from 19 multiple in‐depth case study interviews with Mainland and Hong Kong Chinese firms and buyer firms from the West.

Findings

Compatibility dimensions that provide further evidence of factors that underpin the nature of classical‐type exchange arrangements, vis‐à‐vis relational relationships, within Chinese buyer‐seller interactions are identified. Compatibility variations based on political and legal factors are driven by interpretation and application of Chinese state laws at the business and provincial levels rather than at the national level. Mainland Chinese tend to exhibit authoritative vis‐à‐vis Confucian‐based practices and a short‐term orientation within interactions.

Research limitations/implications

There is a need to expand the psychic distance composite to elucidate compatibility variations within the distinct provincial business regions of China. Quantitative studies to test for compatibility variability in China business practices across China are needed next. A better understanding of the nature of classical inclinations used by the Chinese is crucial, as is an understanding of how firms, both domestic and foreign, are able to leverage classical and relational relationships within Mainland China.

Practical implications

Uncertainty associated with the entrepreneurial behaviours of Chinese businesspersons and a varying emphasis on traditional Confucian values in business result in a hybridisation of interactions across classical and relational types. Guanxi may be evolving beyond traditional social and personal trust as Mainland Chinese business relationships have advanced from the smaller scale CFB stage to the state‐owned enterprise stage, and now to the larger and increasingly important world trade stage.

Originality/value

The paper challenges shortcomings in research that has centred exclusively on the relational nature of Chinese business interactions, and it builds on previous research to study compatibility variations underpinning these Chinese interactions. It predicts a hybridisation of interactions amongst Chinese actors and provides a foundation for future quantitative research to study compatibility variations, and also classical‐type business practices across China. Increased international market awareness may also be leading to the inclusion of an economic trust factor, driving classical‐type Chinese buyer‐seller relationships, as is more characteristic of arrangements found in Western exchanges.

Details

European Journal of Marketing, vol. 44 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Article
Publication date: 27 July 2012

Hongzhi Gao, John G. Knight and David Ballantyne

This article aims to identify critical aspects of Chinese‐Western intercultural guanxi relationships that have largely been ignored as a domain for study in international business…

4549

Abstract

Purpose

This article aims to identify critical aspects of Chinese‐Western intercultural guanxi relationships that have largely been ignored as a domain for study in international business and industrial marketing, and to suggest a way forward.

Design/methodology/approach

A theme analysis across a range of academic and business journal articles is undertaken to capture major themes involving China‐focused research that relates to international business and industrial marketing, and also to locate critical themes that may have been overlooked.

Findings

Intercultural interaction at a personal level is both unavoidable and critical for successfully doing business with China. This study introduces the term guanxi gateway ties to highlight a special class of facilitating relationships that can emerge through interactions between guanxi insiders and guanxi outsiders. Insiders and outsiders can meet and work together in this middle‐cultural territory for the instrumental purpose of obtaining passage through the “gateway”.

Research limitations/implications

Inevitably some journal articles of interest may have been missed in the review due to the chosen scanning boundary. Nevertheless the search method provides a sufficient base to reveal recurrent research themes, and also overlooked themes of potential significance.

Practical implications

Guanxi gateway ties assist companies and individual business actors to find a path through the cumbersome Chinese bureaucracy and hierarchical levels by activating personal relationships.

Originality/value

This study reveals a commonly overlooked perspective of guanxi, that is, as a facilitator of culture‐bridging ties. The conventional business perspective of guanxi can be viewed as evolving from a gated community into an intercultural facilitating mechanism.

Details

Journal of Business & Industrial Marketing, vol. 27 no. 6
Type: Research Article
ISSN: 0885-8624

Keywords

Book part
Publication date: 16 August 2014

Anna Kaunonen

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have developed…

Abstract

Three types of industrial buyer-seller relational process models are available: joining theory, stage theory, and state theory. However, historically, these models have developed based on the knowledge and cultural context of the Western world. Several researchers note that national culture may have an impact on international industrial buyer-seller relationships. Including culture in the models is highly important, especially as the business environment is increasingly more global and different countries have different business cultures. The goal of this paper is to define the most suitable industrial buyer-seller relational process models for describing relationships in various contexts. The paper includes a through literature review and a single case study in order to reach this objective. A new state theory model evolved during the research. It consists of two beginning states: searching and starting; four purely middles states: constant/static, decline, growth, and troubled; and a purely end state: termination. The state of dormant/inert is both a middle state and an end state, that is, when the relational actors are not in contact does not mean that the relationship has ended, but instead, for example, new legislation may have been implemented, which requires the actors to evaluate their relationship and its future. A relationship goes through the two beginning states in the order mentioned above, but after that, any state may occur.

Details

Advances in Business Marketing & Purchasing
Type: Book
ISBN: 978-1-78190-858-7

Keywords

Article
Publication date: 1 July 2004

Chun‐ju Flora Hung

This study of multinational companies in China focuses on the role culture plays in relationship cultivation. The author interviewed 40 participants from 36 multinational…

3572

Abstract

This study of multinational companies in China focuses on the role culture plays in relationship cultivation. The author interviewed 40 participants from 36 multinational companies in China. The findings revealed that characteristics of Chinese culture, such as family orientation, guanxi, relational orientation (role formalisation, relational interdependence, face, favour, relational harmony, relational fatalism and relational determination) had an influence on multinational companies’ relationship cultivation strategies. Multinationals from Western countries were found, however, to be more persistent in maintaining their own cultural values in relationship building than multinational companies from Asian countries.

Details

Journal of Communication Management, vol. 8 no. 3
Type: Research Article
ISSN: 1363-254X

Keywords

Article
Publication date: 1 February 2000

David Gilbert and Jenny Tsao

Marketing has always been recognised as an economic activity involving the exchange of goods and services. Only in recent years have socio‐cultural influences been identified…

9682

Abstract

Marketing has always been recognised as an economic activity involving the exchange of goods and services. Only in recent years have socio‐cultural influences been identified as determinants of marketing behaviour, revealing marketing as a cultural as well as economic phenomenon. Nevertheless, the influence on business activity of cultural differences is obvious but not simple to analyse, describe or categorise. Therefore, the cultural aspect of marketing remains a weak and subsidiary element in the theoretical realm of hospitality management. It has been suggested that cultural differences are an important influence on the successful outcomes of business. This exploratory study examines the new approach to relationship marketing (RM) in the context of eastern culture, to uncover the context and construction of relationships in Chinese society. Traditional Chinese culture stresses the importance of human interaction. The essence of this interaction is kuan‐hsi (personal relationships) which goes far beyond the Western concept of networking as kuan‐hsi is entrenched into every aspect of Chinese society, influencing social, political and commercial relations. The nature of RM theory based on a cultural difference oriented perspective is examined, and the present practice of RM and its specific nature within a Chinese cultural context of hotel management in Taiwan evaluated.

Details

International Journal of Contemporary Hospitality Management, vol. 12 no. 1
Type: Research Article
ISSN: 0959-6119

Keywords

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