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To review the importance of the Chinese cultural phenomenon, guanxi, and the marked difference in both consumer behaviour and management practices between China and the West, all from the perspective of market entry by multinational firms.

General conclusions are drawn and strategic imperatives inferred from a review of the relevant literature and a set of case histories based on personal interviews with key executives in the Chinese operations of six large overseas consumer‐goods companies.

The undoubted strategic significance of guanxi has been diluted recently among joint ventures designated as “encouraged” by the Chinese government, and is being replaced by a market‐driven paradigm of marketing operations. The guanxi‐driven paradigm remains a crucial factor in planning and managing effective working relationships when the Chinese partner is one officially classified as “restricted”. Case histories show that early success is no guarantee of continuing dominance, as indigenous competition intensifies and Chinese corporations become larger and better resourced.

Foreign multinational entrants to the Chinese market must remain sensitive to characteristically Chinese business and consumer behaviour, but can successfully adopt a more Western approach to marketing strategy in certain situations. It is essential to use marketing intelligence effectively, and to plan well beyond the short term.

The authors' expert view of the current situation fro multinationals in China adds a useful extra dimension to the received wisdom.

The paper aims primarily to describe and analyze how the strategic and operational relationship with independent dealers has been improved and controlled. The paper also aims to describe and analyze the improvement program that the dealerships have designed, adopted and implemented, and the improvements that have resulted from them.

The paper used an explorative, qualitative research approach using in‐depth interviews. In order to achieve a prior understanding of Volvo Trucks North America's (VTNA) quality improvements at the dealerships, three in‐depth interviews were conducted with dealers in the USA. One interview was held with a business manager responsible for five dealerships in the Chicago area, and another with the person in charge of the quality improvement program at the corporate level.

The key to success lies in the strategic and systematic implementation of the tools and programs with which VTNA has provided its dealerships. The following six factors were identified as key issues in VTNA's improvement program: customer focus, product quality, service experience, employees, information and communication technology, and customer satisfaction.

This paper illustrates how a large company such as Volvo is able to positively influence a large number of smaller companies using a small number of policies.

China’s economy is transforming at a brisk pace. A partially dismantled command economy and introduction of competition have fueled consumer demand for a greater selection of innovative new products in the retail market. The challenge for retail buyers is to adjust their procurement processes to respond to consumer needs in an efficient and effective manner. This study examines factors influencing buyer‐supplier relationships in a transition economy. We present a model to explain the factors driving retail buyer dependence on suppliers. We find that retailer evaluation of supplier credibility mediates the relationship between retailer perceptions of a supplier ability to add value to its business and the ability to achieve its desired goals. In part, this is due to the supplier’s market orientation. Interestingly, guanxi ties have no impact on the retailer perceptions of the supplier credibility, but have a positive affect on retailer dependence on its supplier partners.