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The importance of relatioinships and guanxi when doing business in China
Stockholm University, Faculty of Social Sciences, School of Business.
Stockholm University, Faculty of Social Sciences, School of Business.
Stockholm University, Faculty of Social Sciences, School of Business.
2004 (English)Independent thesis Basic level (degree of Bachelor), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

China is and will be an even more important market in the future. In China, business is highly affected by relationships or more precisely guanxi. Guanxi is a specific element in Chinese culture and affect everyday life of Chinese people. Guanxi has a significant role in Chinese business environment. Therefore, how the foreign companies handle this factor is crucial. The main purpose of this thesis is to identify the major impacts of guanxi when doing business in China, for small medium and large companies. The study has been focused on Swedish telecom companies, operating in China. The study has been done partly through deep studies of the theories concerning traditional relationship marketing, industrial marketing and most importantly theories concerning Chinese culture and guanxi and partly by empirical evidences. The empirical data for this study has been gathered through depth interviews with specific managers in different companies. The results shows, that guanxi has impacts on how to do business in China. Guanxi is a source of information and resource. Guanxi can also give protection against threats and uncertainty. However, the importance of guanxi differs depending on which industry the companies are operating in and in which development phase the companies are currently in. The results show also that the importance of guanxi is though diminishing as the Chinese market is going private and to a certain extent adapting to Western style of doing business.

Place, publisher, year, edition, pages
2004.
National Category
Business Administration
Identifiers
URN: urn:nbn:se:su:diva-5220OAI: oai:DiVA.org:su-5220DiVA: diva2:194985
Uppsok
samhälle/juridik
Available from: 2007-01-05 Created: 2007-01-05

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