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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…

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 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…

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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

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Article
Publication date: 1 January 1999

Kwong‐leung Tang

Examines the extent to which social policy adopted by the colonial government in Hong Kong (prior to its hand‐over China in 1997) has set the agenda for the government of…

1152

Abstract

Examines the extent to which social policy adopted by the colonial government in Hong Kong (prior to its hand‐over China in 1997) has set the agenda for the government of the newly formed Special Administrative Region (SAR). Chronicles the historical development of social policy in Hong Kong since the inception of the colonial government in 1842; identifies that, with the exception of a short‐lived period of expansionism (stimulated by social unrest in the mid‐1960’s) social welfare provision appears to have been low on the government’s agenda and incremental in nature ‐ the emphasis being on economic growth, rather than public spending on welfare programmes. Examines the strengths and weaknesses of this incremental approach; outlines the commitment of the SAR government to the market economy and its proposals for a modest increase in welfare provision, essentially building on the legacy left behind by the colonial government.

Details

International Journal of Sociology and Social Policy, vol. 19 no. 1/2
Type: Research Article
ISSN: 0144-333X

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Book part
Publication date: 16 August 2014

Anna Kaunonen

The industrial buyer-seller relational process models from the Eastern and Western worlds have not been combined. The Western world has dominated the development of the…

Abstract

The industrial buyer-seller relational process models from the Eastern and Western worlds have not been combined. The Western world has dominated the development of the models, while there exist only a very limited amount of guanxi development models from the East. This paper is exploratory in nature, focusing on combining the development of these two worlds into one intercultural model. Four case relationships verify the proposed model.

This paper focuses on only one cultural context outside of the West, that is to say, China. In order to justify the model to be completely an intercultural one, research in other cultural contexts is necessary.

Details

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

Keywords

Content available
Book part
Publication date: 28 June 2017

Eliane Karsaklian

Abstract

Details

Sustainable Negotiation
Type: Book
ISBN: 978-1-78714-575-7

Article
Publication date: 1 December 2003

T.K.P. Leung and Ricky Yee‐kwong Chan

This study is an initial attempt to look at the relationships among “inducement factors”, “face work” and “favour” from a Hong Kong‐China intra‐cultural negotiation…

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Abstract

This study is an initial attempt to look at the relationships among “inducement factors”, “face work” and “favour” from a Hong Kong‐China intra‐cultural negotiation environment. The model in this paper was modified from Hwang's paper on the same subject that has not been followed up in the past 13 years. The findings suggest that “face work” has four dimensions, namely “reciprocity”, “response”, “respect”, and “reputation”. Hong Kong negotiators, because of their similar ethnical background, manipulate these four dimensions to align themselves with powerful Chinese parties so as to help them negotiate through the complex Chinese relational society. They have three positions in the Chinese market, i.e. the impresser, smoother and cruel. By positioning themselves as “impressers”, the Hong Kong negotiators have the least psychic distance and transaction cost with their Chinese counterparts. Foreign negotiators are advised to use “face work” as a cultural strategy to help them negotiate through the complex business network in China. Also, they remember to practice this strategy widely because a not‐so‐important person may become a very important person in the future and therefore foreign negotiators will benefit on a longer term basis. They should also position themselves as “impresser” to give a modest image in the eyes of their Chinese counterparts. Modesty is highly valued in the Chinese society.

Details

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

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Article
Publication date: 15 February 2008

T.K.P. Leung, Vincent C.S. Heung and Y.H. Wong

The purpose of this paper is to determine a model of how a foreign businessman obtains and maintains cronyism from his Chinese counterpart that emphasizes on an insider…

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Abstract

Purpose

The purpose of this paper is to determine a model of how a foreign businessman obtains and maintains cronyism from his Chinese counterpart that emphasizes on an insider perspective to convert him from a new friend to an old friend of his Chinese counterpart through a guanxi adaptation mechanism.

Design/methodology/approach

A vigorous analysis of extant literature and an investigation of insider dynamics within a new friend/old friend perspective.

Findings

Gift‐giving is strategic and a foreign businessman must manage its monetary value very cautiously in order to alleviate the “face” and provide renqing so as to generate ganging and to obtain cronyism from his Chinese counterpart. In saying that, relativism prevails. A foreign company must establish a zone of ethical tolerance so that its executive knows the limits when practicing gift‐giving. In China, an old friend is a supporter and therefore a foreign business should not openly criticize his Chinese counterpart. Frequent visits to China must be maintained.

Practical implications

A foreign businessman needs to understand the guanxi dynamics of renqing and ganging and their sequential arrangement in the adaptation mechanism. He should use gift‐giving to offer renqing so as to establish ganging with his Chinese counterparts.

Originality/value

Provides a depth analysis of two emotional aspects in the guanxi adaptation mechanism, i.e. renqing and ganging which is a definitive device to convert a foreign businessman from a new friend to an old friend of his counterpart in the Chinese market.

Details

European Journal of Marketing, vol. 42 no. 1/2
Type: Research Article
ISSN: 0309-0566

Keywords

Content available
Book part
Publication date: 19 March 2019

Sadia Samar Ali, Rajbir Kaur and Jose Antonio Marmolejo Saucedo

Abstract

Details

Best Practices in Green Supply Chain Management
Type: Book
ISBN: 978-1-78756-216-5

Book part
Publication date: 29 August 2017

Michel Dion

The side effects of disguised bribes are hidden by their apparent good consequences (as pseudo-gifts). The aim of the chapter is to unveil to what extent pseudo-gifts (as…

Abstract

The side effects of disguised bribes are hidden by their apparent good consequences (as pseudo-gifts). The aim of the chapter is to unveil to what extent pseudo-gifts (as disguised bribes) could distort the cultural, social, and communicational functions of gift-giving practices. We will firstly describe how disguised bribes could be analyzed from a Sartrean perspective, given that Sartre’s notion of bad faith could help to better understand the three basic kinds of substantive loss which follow from disguised bribes: (a) the loss of commonalities (the cultural function of gift-giving as distorted by disguised bribes: Malinowski’s notion of culture): we will analyze the phenomenon of guanxi; (b) the loss of social bonds (the social function of gift-giving as distorted by disguised bribes: Durkheim’s notion of culture); (c) the loss of communicability, and the arising of an empty truth (the communicational function of gift-giving as distorted by disguised bribes: Jaspers’ notion of truth claims). Gift-giving practices are culturally rooted. This is the first level of analysis (surface). Seizing the social and moral function of gift-giving practices unveils the second level of analysis (beneath-the-surface). Describing the communicational function of gift-giving practices opens the door to the third level of analysis (exchanges of truth claims). Bribery is the distortion of those basic functions of gift-giving practices. We are then facing an empty truth (the communicational function of culture is distorted).

Any concept of disguised bribes must be empirically tested. The way the cultural, social and communication functions of gift-giving practices are distorted could vary from one culture to another. Future research could check how such distortions arise in given societal cultures. It could then distinguish the side effects of disguised bribes, either from a cultural viewpoint, or from social perspective, or even from a communicational pattern of reference. Unveiling the multiple ways of distorting gift-giving practices could help decision-makers to better understand the frontiers between bribery and gift-giving. Emphasizing the various functions of gift-giving practices, from a philosophical and sociological perspective, could allow business decision-makers to raise their ethical awareness.

Details

The Handbook of Business and Corruption
Type: Book
ISBN: 978-1-78635-445-7

Keywords

Article
Publication date: 4 November 2013

Antonio Lobo, Civilai Leckie and Chongguang Li

The purpose of this paper is to examine the impact of two Chinese cultural constructs, guanxi (networks) and xinyong (interpersonal trust) in the burgeoning vegetable…

Abstract

Purpose

The purpose of this paper is to examine the impact of two Chinese cultural constructs, guanxi (networks) and xinyong (interpersonal trust) in the burgeoning vegetable supply chains.

Design/methodology/approach

Data were collected using a validated survey instrument and 520 usable responses were obtained from vegetable farmers in three main vegetable producing provinces of China.

Findings

The findings revealed that farmers' guanxi promotes xinyong and collaboration of buyers. It was also determined that xinyong is the key mediator between guanxi and the two outcomes, loyalty and financial performance of farmers. Additionally, xinyong influences collaboration of the buyer.

Research limitations/implications

This paper offers strategic insights into both academicians and practitioners associated with the vegetable industry regarding enhancement of inter-organisational relationships (loyalty) and financial performance of farmers in China through the embedded concepts of guanxi and xinyong.

Originality/value

Despite its potential importance, relatively little is known about these two concepts especially with respect to supply chains of fresh produce.

Details

Asia Pacific Journal of Marketing and Logistics, vol. 25 no. 5
Type: Research Article
ISSN: 1355-5855

Keywords

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