Chinese expatriates’ adjustment process in Portugal: On the road to Guanxi replication

A Work Project, presented as part of the requirements for the Award of a Masters Degree in Management from the NOVA – School of Business and Economics

THE IMPACT OF GUANXI TO MULTINATIONAL COMPANIES BUSINESS PERFORMACE, CORPORATE REPUTATION, NEGOTIATIONS AND MANAGEMENT IN CHINA

The modern business development of China began during 1978 and during the last decades Chinese have created one of the most dynamic and strongest economies in the world. China is now second largest trading power calculated in dollars. The special characteristic of this economic development is that it is not copy of any existing economy, instead the developments have been strongly influenced by the Chinese cultural characteristics. One cultural characteristic, guanxi, which is a “network of services and counter- services” is argued to be major component of successful business in China where these changes of services happen between people but also between companies. Obtaining introductions and the guanxi when doing business in China will give attentive audience and security for companies business. Despite the evidenced importance of guanxi, China´s business environment is rapidly changing towards Western economies, which might then reduce the importance of guanxi. Therefore the current impact of guanxi is a important topic to study. The main purpose of this study is to explore the impact of guanxi for Western big and small sized multinational companies´ business processes when doing business in China. This study looks What is the impact of guanxi in contemporary Chinese business environment for foreign companies doing business in China. Sub-questions in this research focus on what is the impact of guanxi on corporate reputation, management and negotiations. Findings present a mixed view where the importance of guanxi is not anymore critical, especially among younger people in the cities, however guanxi was clearly important outside the cities and when dealing with government officials. Efficient use of guanxi can be extremely profitable especially during early stages of business operations and guanxi plays role when bargaining prices and ensuring product quality from the factories. Therefore guanxi should be considered as essential element for successful business in China.

Guanxi y el estilo de negociación chino: desde la relación hacia la transacción

La problemática parte de que las interacciones entre China y América Latina han sido pocas. En particular, las negociaciones con China han probado ser difíciles y en algunos casos han fracasado. Motivo parece ser que la negociación china difiere

Chinese host country nationals' willingness to support expatriates:the role of collectivism, interpersonal affect and Guanxi

The willingness of host country nationals (HCNs) to provide support to the expatriate has received a lot of attention in the literature on international assignments. Surprisingly, though, the number of empirical studies examining this relationship is extremely limited. This study examines the role of HCNs' collectivistic orientation, interpersonal affect, and guanxi in relation to their willingness to support expatriates. Using data from 212 HCNs in China, it is found that HCNs' perceived relationship quality with the expatriate has a significant impact on their willingness to provide assistance, both role information and social support, to expatriates. Further, it is found that relationship quality is related to perceived cultural similarity. The results reinforce the importance of paying attention to the perceptions and reactions of HCNs towards expatriates. Implications of the findings are discussed, and suggestions are offered for future research.

Are indigenous approaches to achieving influence in business organizations distinctive? A comparative study of guanxi, wasta, jeitinho, svyazi and pulling strings

Managers in five nations rated scenarios exemplifying indigenous forms of informal influence whose cultural origins were concealed. Locally generated scenarios illustrated episodes of guanxi, wasta, jeitinho, svyazi and pulling strings. Local scenarios were judged representative of local influence processes but so too were some scenarios derived from other contexts. Furthermore, many scenarios were rated as more typical in non-local contexts. While these influence processes are found to be widely disseminated, they occur more frequently in contexts characterized by high self-enhancement values, low self-transcendence values and high endorsement of business corruptibility. Implications for a fuller understanding of local business practices are discussed. © 2012 Copyright Taylor and Francis Group, LLC.

Are guanxi-type supervisor-subordinate relationships culture-general? An eight-nation test of measurement invariance

Three dimensions of subordinate-supervisor relations (affective attachment, deference to supervisor, and personal-life inclusion) that had been found by Y. Chen, Friedman, Yu, Fang, and Lu to be characteristic of a guanxi relationship between subordinates and their supervisors in China were surveyed in Taiwan, Singapore, and six non-Chinese cultural contexts. The Affective Attachment and Deference subscales demonstrated full metric invariance whereas the Personal-Life Inclusion subscale was found to have partial metric invariance across all eight samples. Structural equation modeling revealed that the affective attachment dimension had a cross-nationally invariant positive relationship to affective organizational commitment and a negative relationship to turnover intention. The deference to the supervisor dimension had invariant positive relationships with both affective and normative organizational commitment. The personal-life inclusion dimension was unrelated to all outcomes. These results indicate the relevance of aspects of guanxi to superior-subordinate relations in non-Chinese cultures. Studies of indigenous concepts can contribute to a broader understanding of organizational behavior. © The Author(s) 2014.

Solving the mystery of Guanxi-a sociological explanation of social exchange and social networking in Guanxi practice

Guanxi, loosely defined as "inter-personal relations" or "personal connections," is one of the key socio-cultural concepts in understanding Chinese society. This thesis presented a theoretical examination of the Chinese socio-cultural concept of guanxi. By using a broad survey of the available literature, this thesis established the following points: Social structures shape and define the development of guanxi practice in Chinese society. Guanxi relationships are based on the social exchange of gifts and favors in dyadic or multi-stranded social networks. While following the general rules of reciprocity found in social exchange, guanxi exchange is also governed by the internalized social norms such as mianzi (face) and renqing (humanized obligation underpinned by human sentiment). Guanxi relationships are also network-oriented, featuring ties based on familiarity and mutual trust, and characterized by an interplay between expressiveness and instrumentalism.

La Cène ou la figure du banquet comme image de crise morale chez Zeng Fanzhi

Les yeux et les masques sont prévalents dans les oeuvres du peintre chinois contemporain Zeng Fanzhi (né en 1964), comme métaphore du jeu de pouvoir qui oppose les individus à l’appareil social et politique. Son oeuvre La Cène, d’après Leonard de Vinci, est un exemple frappant de cette préoccupation. Cet essai examine l’utilisation par l’artiste de cette représentation occidentale d’une crise morale (une trahison qui mène à la mort du Christ) pour exprimer la dystopie qui marque la Chine contemporaine. L’interprétation par Zeng de l’oeuvre de Vinci témoigne d’une compréhension profonde de sa signification à la Renaissance comme conflit entre le pouvoir terrestre et spirituel, auquel il surimpose la fonction du banquet dans la culture chinoise comme lieu de lutte politique. Un nihilisme détaché imprègne ce travail, à l’instar de l’interprétation métaphorique du banquet de Platon par Søren Kierkegaard, In Vino Veritas.

Context costs and comparative advantages in the telecommunications sector in Portugal and China

This Work Project aims to discuss the Context Costs and Comparative Advantages of the Telecommunications sector both in Portugal and China. The work was built mostly on primary research by interviews with relevant people (business persons, University Professors and Agencies directors), and by economic data publicly available. A list of context costs and comparative advantages was drawn for each country and possible resolutions suggestions were made in the end. The context costs depend heavily on the economic situation of the countries and it should be taken into account when assessing the degree of magnitude of each cost of context. The competitive advantages of each country were drawn in comparison with one another. Some key results stand out: firstly, Portugal’s costs of context depend mainly on governmental decisions, uncertainties and instability and China’s cost of context depend primarily on cultural norms, mainly the Guanxi; second, the telecommunications sector shares most of its context costs and advantages with other sectors; third, China as an economic power could use the telecommunications sector as a way to further develop and boost its economy.

Workplace adjustment of an expatriate manager: identifying key components from a social capital perspective

Perustaen tutkimuksen kansainvälisen sopeutumisen teoreettiselle rungolle täydentäen sitä sosiaalisen pääoman teorialla, tämä tutkielma tutkii kuinka johtoasemassa oleva ulkosuomalainen luo hyvin toimivan sosiaalisen verkoston hong kongilaisella työpaikallansa. Tutkielma lähestyy aihetta Nahapietin ja Ghoshalin (1998) kehittämän sosiaalisen pääoman kolmen ulottuvuuden mallin avulla. Tutkielmassa kirjallisuudesta haettua teoriaa käytetään tutkimustavarten tehtyjen haastattelujen analysointiapuna. Tutkimalla sosiaalista pääomaa, kansainvälisen sopeutumisen kirjallisuutta, ekspatriootin perinteisiä menestystekijöitä ja guanxia (kiinalaisten henkilökohtaisia siteitä) tämän tutkimuksen teoriaosuus implikoi, että sosiaalisella pääomalla tulisi olla täydentävä rooli kansainvälisen sopeutumisen kirjallisuudessa. Sosiaalisen pääoman kolmen ulottuvuuden mallia käytetään pohjana empiirisen datan analysointiin. Tutkielman empiiriset tulokset osoittavat, että työpaikan sosiaaliseen verkostoon sopeutuminen liittyy exspatriootin kykyyn käsitellä estäviä ja mahdollistajia sosiaalisen pääoman luontiin vaikuttavia tekijöitä. Lisäksi sopeutuminen vaatii exspatriootin tunnistavan kohdemaalle tyypillisiä exspatriootin menestystekijöitä ja ekspatriootinomia tärkeitä henkilökohtaisia ominaisuuksia.