Social Capital in China Based on Guanxi - Case Study Example

Guanxi Concept Name Class Unit Introduction Guanxi is a concept in china that refers to the relationship between people. In business, it is a form of preferential treatment that a partner is given in an exchange and includes easy ease of access to resources, access to controlled information, credit and protection in case of competition. Through Guanxi, there is creation of favours and obligations. In modern China, the concept of Guanxi plays a major role in business (Guan, 2011). When one has a good Guanxi when doing business in China, they are able to enjoy favours. The concept of Guanxi is deeply rooted in Confucius. Under globalisation, Australian firms have been looking for ways to increase their revenue. China have become of the most favoured destination for the Australian firms. While a lot of Australian firms have expanded their operations to China, it has been noted that they faces a complex task of Guanxi especially when carrying out negotiations. Guanxi is one of the most important cultural traits of Chinese people, especially when doing business. In negotiations, Guanxi looks at the process of relationships, connections, trust and friendship (Tung, Worm, & Fang, 2008). To succeed in Chinese business dealing requires friendship and a lasting relationship. This report discusses the importance of concept of Guanxi when establishing business between Australia and China. Social capital in China based on Guanxi Social capital is based on the way relationships among individuals which facilitates action. It’s the opportunity that one receives by establishing close relationship with others. For the East Asian countries such as china, they have a great influence from Confucius (Hitt, Lee & Yucel, 2002). This influence leads to the importance of interdependent relationships. In China, building relationships is based on Guanxi. Guanxi is an important factor in Chinese business success. This is due to the fact that Chinese business networks depend on Guanxi relations. The Guanxi network is a core competence and a competitive advantage when carrying out business in china. The business variables in which Guanxi is embedded in enhancing business success. Sale force marketing and credit liberalisation have been identified as the most important business variables that are embedded in Guanxi (Hitt, Lee & Yucel, 2002). Through the use of a good Guanxi, it is possible for a company with poor products to make sales than without it. Managers who are able to devote their time and effort in coming up with strong Guanxi are able to enhance sales growth in their organisations using sales force marketing. When organisations have Guanxi, they act as resources to each other. They can help each other through human resources, capital, favours and information. This helps in overcoming competitive advantage as organisations are able to exchange resources. While doing business in china, it is vital to understand that benefits of Guanxi are more tactical than strategic (Jayaraman, 2009). Guanxi also acts as a personal asset, hence cannot be transferred. When carrying out business in china, Guanxi is necessary but not sufficient. Cross cultural negotiation Faced with globalisation, negotiations have become more complex and challenging. The business environment requires a negotiator who is able to deal with the entire business relationship from start to the end. Managers are required to make cross cultural negotiations in order to pursue global market place. In global business, managers spend more than 50% of their time in negotiations. Making a deal in global perspective requires the manager to overcome different cultural barriers (Zhu, McKenna, & Sun, 2007). The barriers define the negotiation strategies to be used and the pace. To succeed in close cultural negotiations, the negotiator has to understand the behaviour of involved bargaining partners. These negotiations involve discussing the conflicting interest between people of different cultures to come up with a mutual benefit agreement. Most of the Chinese views the western negotiation process as a signing of a prenuptial agreement (Hammond & Glenn, 2004). This is an agreement that can damage a relationship even before it starts. For the Chinese, when a contract is detailed in ink, it kills a relationship. This is due to fact that it eliminates the need for continuous gestures of trust. Negotiations in china evolve as an ongoing dialogue among the involved parties (Zhu, McKenna & Sun, 2007). The Chinese negotiations are relationship focused unlike the Australian’s which is deal focused. In China, people prefer to deal with those they trust and know well. The Australian use deal focused negotiation and can openly deal with strangers. For Chinese, they believe that Australians are honest and friendly, trustworthy and practice integrity. Despite this, Chinese people do not behave in a similar manner. They are most likely to exploit weakness of their partners when carrying out business. Chinese believe their history and culture have enabled them to be shrewd and capable of exploiting the weakness of Australians when doing business (Yan & Hafsi, 2007). It is also important to note that Chinese people are influenced by the communist party in carrying out their business. Through the use of Guanxi, Chinese values long term relationship which is in contrast with the Australians who focuses more on immediate financial gain (Zhu, McKenna & Sun, 2007). When carrying out a business between Australia and China, business relations is very vital. Importance of Guanxi in Chinese negotiation Negotiation is an interactional phenomenon where two parties agree on a matter of mutual interest. Depending on their interests, parties involved in a negotiation may be subjected to conflicts. For the Chinese managers, they have a comprehensive Guanxi, which they believe that it helps them to perform business in china (Zhu, McKenna & Sun, 2007). Without using Guanxi, Australian managers cannot succeed in anything in China (Yan & Hafsi, 2007). The Australian managers are expected to have a deep understanding of Guanxi in order to conduct business negotiations in China. In order to make successful business negotiations in China, one has to understand the complex Guanxi culture which is very different from Australia. The firm must look at the relationship as one of the most vital issues in conducting negotiations in china. The Chinese business negotiation process is pervaded by Guanxi, which is in stark contrast with Australia. Australians are more time conscious and more concerned with deadlines as opposed to Chinese. When in negotiations, Australians are more aggressive and can express their frustrations. Looking at Australian managers, they have greater authority and usually make decisions on the spot. In Australia, business negotiations are seen as a way of ending the conflict and come up with a course of action that will benefit the Australian business in profits. This makes the Australians managers to have a very different approach to negotiations as compared to the Chinese managers (Zhu, McKenna & Sun, 2007). The importance of Guanxi in doing business in china is expressed by McDonald’s case. When McDonalds opened their first store in China in 2001, they were forced to move despite the fact that their lease had not expired. The company took the Beijing authorities to court but they were not able to succeed. This was blamed on the fact that McDonalds lacked Guanxi, which was critical to success in China. Guanxi is comparable to having a network of acquaintances which is very vital in a Chinese business environment. Being successful in Chinese business is not just a matter of prices but also the level of relationship (Yan & Hafsi, 2007). Guanxi lead to a long term orientation within the Chinese society. Utilising Guanxi Chinese society can be considered as social and normative. The country has their relationships based on reciprocal social relationships. When carrying out a business in china, there is need for an individual link with the social network through Guanxi. Relationship in an organisation operating in a Chinese context must be based on Guanxi. Guanxi should not only cover personal relationships but also business relationships (Guan, 2011). The Australian manager is required to develop and maintain Guanxi in the organisation level. In an organisation without strong government ties, Guanxi is needed as a strategic tool (Guan, 2011). As a multinational organisation, there is need to apply Guanxi skillfully when entering into Chinese market. Guanxi should be highly regarded and looked at as a strategic resource. Getting the real meaning of Guanxi and applying it in the context is required for long term cooperation. When there is Guanxi, an organisation experiences fewer conflicts in negotiations (Jayaraman, 2009). Research have proved that Guanxi have played a major role in determining success or failure of a foreign enterprise. When establishing a relationship in Australian context, there is need for emotional feelings. In order to implement Guanxi correctly, there is need to have deep understanding of the Chinese partner. This requires carrying out adequate research. Understanding Guanxi in Chinese context China and western countries differs a lot in attitudes towards law. Laws in Australia define what can be done and what cannot be done. In Chinese context, law is based on Confucian theme. Confucianism is based on the human relationships and provides the standards of behaviours (Guan, 2011). More concern is paid to righteousness than profit. For the Chinese negotiators, they never rush into contracts and takes time to build trust with partners. Business is built on trust rather than law. Before entering into a contract with Chinese partner, there is need to establish trust. This makes a verbal agreement binding and important as the written contract. There is need to understand the Chinese theme before entering into negotiations. Chinese are hard bargainers and takes advantage of Guanxi to win. The concept of Guanxi is embedded in the Chinese philosophy tactically (Yan & Hafsi, 2007). For the Australian firm entering China, there is a need to look at the five key concepts related to Guanxi. The concepts are; Li, Xiao, Ren, Junzi and Zhengming. These five themes have the ability to help the Australian managers have an in-depth understanding of Guanxi. Li refers to rituals. Chinese a relationship based culture and having good connections within the community is referred to as “having face”. It is very important to protect ones face and ensure that you protect other peoples too. Losing face refers to being humiliated. In negotiations, one has to avoid situations where being aggressive can lead to humiliation (Zhuo & Guang, 2007). Making good impression is vital to ensure that there is no embarrassment. When carrying out business negotiation, it is important to note that Chinese culture looks at it in individual perspective not the organisation. Chinese have a strong belief that giving face is very vital in creating and enhancing Guanxi (Jayaraman, 2009). This is in contrast with the Australian perspective where one is keener on personal identity and less in helping others maintain their face. It is important to understand body language to avoid embarrassing others or being misunderstood. In Chinese negotiation, there is more listening than talking. Listening to others and showing interest helps a lot in maintaining face (Zhuo & Guang, 2007). This helps in creating a long term Guanxi network in China. Using Xiao in business, it implies that top management has more powers than low level management. There is a strict hierarchy that has to be followed. Chinese organisations reserve authority to the top management. This makes it hard for the advice from low level managers to be accepted by top management. This is in contracts with Australia, where there is small power distance. This implies that in order to transact with the Chinese organisation, understanding the importance of hierarchy is vital (Zhuo & Guang, 2007). Being casual is supposed to be avoided in the Chinese context. According to Guanxi, obedience to the superiors is very important. When Australia firm is dealing with a Chinese firm, it is very important to note that it’s vital to respect the hierarchy. It would be inappropriate for the Australian firm to use low level managers for top level negotiations. The Chinese managers become angry when people of unequal status are sent to negotiation or strike a deal with them. This is seen as disrespectful and may lead to poor Guanxi. Social status in Chinese culture must always be respected by the Australian organisation doing business in China (Yan & Hafsi, 2007). There is need to understand that the formal and hierarchical Chinese structure is different from egalitarian Australian culture. Ren in Chinese Guanxi refers to humanness. This is based on the ethics of reciprocity. China business deals are based on reciprocal networks and attaining Guanxi. This creates a mutual indebtedness of human relationship which is continuous (Yan & Hafsi, 2007). This relationship is the basis of Guanxi. The mutual obligation leads to enhanced degree of satisfaction. A favour is supposed to be repaid with another. Guanxi is not based on a single negotiation, but its lifelong relationship. It is important to understand that Guanxi may involve a long period of giving without obtaining favour in return (Zhuo & Guang, 2007). As an Australian organisation, it is vital to know that Guanxi implies reciprocating but may not result in tit for tat. Guanxi is not bribery hence should be well understood. Guanxi is relationship based while bribery is transactional focused. Bribery should be avoided at all costs in China as it destroys Guanxi. It’s also important to make sure that Guanxi does not lead to illegal behaviour where people can hide corrupt practices. Corruption is one of the major problems facing Chinese economy. Some of businesses think that corruption is legal especially when entering the market. This may lead to one engaging in Guanxi as a form of corruption (Zhuo & Guang, 2007). There is need to understand that Guanxi and corruption are not related. This implies that Australian managers have to be able to distinguish between corruption and Guanxi. Seeking a win-win solution on the basis of mutual trust can best explain Junzi in the Guanxi context. There is need to be more flexible and allow ambiguity when dealing with Chinese partners. This is in contrast with the Australian culture which involves clarity and eliminates uncertainty. The Chinese partners may be more concerned with building up before looking for cooperation. There is less scheduling and the management are less concerned with time. Harmony is needed for one to succeed using Guanxi. There is need to conduct business in China with harmony to the society around. There is a need to understand the Chinese perception of harmony in order to benefit from Guanxi. There is a need to understand cultural difference before conducting business in China from Australia (Jayaraman, 2009). China is a masculine society where men are expected to compete in social sphere and women in charge of household chores. Cultural differences should be looked at to avoid conflicts. Another concept of Guanxi that Australian firm must utilise is Zhengming. The concept refers to reality and opportunism which exists in modern Chinese business. Exchange of information is a very vital aspect of the social relations in China. It is important to note that Guanxi is a form of social relationship and it’s transferable (Yan & Hafsi, 2007). Guanxi involves both insiders and outsiders. Insiders involve family members and relatives while outsiders are the people from other countries or states. An Australian firm is an outsider hence their relationship is in most cases considered unstable by Chinese. The organisation from Australia has to work on enhancing Guanxi than the insiders. Based on Australian culture, an organisation can be opportunistic during negotiation. This is very different for a Chinese organisation which avoids opportunism due to Guanxi (Zhuo & Guang, 2007). When using Guanxi, it is important to avoid being opportunistic. Guanxi is the key to success in any business in china. Guanxi is used to shape negotiations. Despite this, Chinese negotiators are tough. This requires the need for one to use Guanxi to build a relationship that can help in negotiations. Relationship approach may change the approach and strategy when making negotiations. Guanxi is a social capital and enhance the organisation competitiveness. By enhancing relationship with the government, providing employment to locals an organisation can achieve a lot of success. Guanxi must be aligned with the organisation strategy and managed well to ensure that it does not become a liability. To succeed in using Guanxi, it is important to be less defensive towards strangers and create a commitment to the new relationship. Impersonal business dealings in china require Guanxi especially when legal and regulatory framework is weak (Zhuo & Guang, 2007). Having a good understanding of Guanxi ensures that one is able to manage culture shock. This is due to the fact that most business in China relies on Guanxi than law. Acceptable Guanxi When conducting business in China, it is vital to know the acceptable and non acceptable Guanxi. Use of special relationship Guanxi can get one into trouble as it may lead to bribing. Guanxi can blur the line between legitimate and illegal business deals. There is a need to be careful when utilising Guanxi. Guanxi has to start by identifying a common base and establishing common goals and values (Yang, 2011). The Chinese party may need to know their Australian counterparts individually. To gain trust one must be willing to compromise and work together for mutual benefit. However, one is supposed to ensure that their interest is catered for. There is need to ensure that Guanxi does not interfere with the intellectual property. When drawing contracts, Guanxi should ensure a real partnership (Lin, 2004). This is through trust and respect and being ready to adjust contract, when need arises. The parties on a contract should adhere to the Guanxi and be ready to renegotiate when te need arises according to Chinese laws. One must be ready to adhere to Guanxi and be wary of anything that might trap them. For example, one can accept a small gifts but large gifts may amount into bribery. Guanxi is based on long term contract while bribery is based on short term relationship hence should be avoided (Yang, 2011). Guanxi should be taken as an obligation but must be acceptable both in China and Australia. Strength of Guanxi In modern China, Guanxi holds a very important part in the market economy. Private companies have been increasingly using Guanxi for protection. Guanxi plays an important part in bridging the gap between the state organisations and private sector. Guanxi helps an organisation achieve its goals if used strategically. Creating a strong Guanxi cannot substitute having a sound business strategy (Kwock, Mark, & Tsui, 2013). To come up with a strong Guanxi requires one to target, scout, signal and pack (Vanhonacker, 2004). Targeting involves identifying the partners to establish the Guanxi with. This is based on the business main objective. This involves coming up with a transactional based relationship. There is need to have a broad long term view that enables the business to have a better perspective on Guanxi. After targeting, one has to scout through coming up with a basis for relationship (Vanhonacker, 2004). A good Guanxi relationship should be based on partners who have something in common. Once a blueprint for the network have been established, there is need to signal the target. This can be carried out in a social event and singling out the target. Once signalling is complete, packaging is carried out. This is through packaging the business objective into the Guanxi established in such a way that it does not bring suspicion. Maintaining frequent contact According to Chinese culture, having frequent contact is very necessary when building relationships. This is due to the fact that Guanxi can easily arise if there is continuous contact. Chinese are more concerned on the level of attention they are given more than knowing each other. This requires an Australian business to use moral, attraction and communication powers to facilitate Guanxi (Hammond & Glenn, 2004). Moral power involves being honest and keeping one’s word. There is a need for the partners to be loyal and ensure that their deeds are in line with their words. According to Confucius principles, they believe that people can achieve anything when they are honest (Vanhonacker, 2004). Chinese are also expected to behave well for them to have a positive influence. Having a moral power is of great importance for one to conduct business using Guanxi. Once a promise is made, it has to be kept. The attraction power involves association with people through improving one value. If one has value, there is great possibility if coming up with a long term relationship. There is a need to be concerned about others and understanding them. One is also required to look for something that is not yet desired. The real Guanxi is based on concern for others. When doing business in China, understanding the role of environment to Guanxi is very important. Guanxi changes with change in environment. There is also need to identify the roles of different individuals before coming up with Guanxi (Vanhonacker, 2004). Through contacting others in the work domain, it becomes easier to establish a social circle. Business card Business cards can be used as a tool to enhance Guanxi. When one does not have a business card, they are assumed to be from a lower social class and may damage the establishment of a Guanxi. When giving business cards, use of both hands is encouraged. This is interpreted as a form of respect in Chinese culture. The business cards should be awarded to the top management first before giving it to those in lower management (Yang, 2011). Guanxi in decision making Chinese are more concerned with group efforts when making decisions. When making decisions, offering one’s opinion is in some cases seen as insubordination or lack of confidence on management which may lead to the manager losing face. Traditional values used are based on maintaining harmony when making decisions. Consultations to superiors are very valued even when decision is simple. The managers in Chinese context are more motivated by their sense of self esteem. Lack of workers initiatives when making decisions is common due to the influence of Confucianism which advocates for total obedience to superiors. This makes Chinese employees less participative in making decisions (Wang, Wang, Aruona & Rojewski, 2005). This makes the decision making process for the Chinese management more time consuming that that of a western firm. Personal interactions based on Guanxi is preferred when making decisions rather than using business rules. The ability to reciprocate is very important when making decisions in China. The HR concept is very new in china. The Chinese HR is impacted heavily by Confucianism even in modern organisations. This leads to procedures for hiring, promotions and evaluation to be biased (Wang et al., 2005). Guanxi plays a major role in HR practices than personal competence. Thus, when an Australian business is operating in china, it has to understand the impacts that Guanxi has on the decision making process and HR (Wang et al., 2005). Understanding how Chinese organisations operate helps an international firm to come up with better methods of dealing with them. Stakeholders’ model of Guanxi There is need to identify the Guanxi relationships that are needed for doing business in china. This helps in distinguishing their importance and criticality. There is a need to identify as many stakeholders as necessary and differentiate internal and external stakeholders. There is need to meet both demands for internal and external stakeholders in Guanxi. This involves coming up with a model for the stakeholders and ranking them. The satisfaction of the Guanxi stakeholders should be based on their legitimacy (Chenting, Ronald & Sirgy, 2006). Coordination ensures that maximum resources from the Guanxi coalitions are obtained. There is need to have a clear distinction among the Guanxi relationships. It is important to realise that management cannot be able to treat all Guanxi stakeholders equally. Through coming up with a model, an organisation is able to have an effective response to the signalling from different stakeholders. Through coming up with the model, it is possible to achieve an effective Guanxi, which ensures that the firm have access to resources needed for survival in Chinese context. A good Guanxi model must look at the concept of economic development. Firm internal Guanxi involves all departments within a firm (Chenting, Ronald & Sirgy, 2006). All departments should be able to benefit from stable flow of resources which are obtained from Guanxi. There is need for coalition among departments based on internal Guanxi. This ensures that the organisation have group harmony and hierarchy. Having good internal Guanxi ensures there is smooth information flow which enhances trust and understanding. When the internal management is Guanxi oriented, it enhances the overall organisation Guanxi. Guanxi relations with external stakeholders are very important. These stakeholders include suppliers, creditors, customers, governments, courts among others (Chenting, Ronald & Sirgy, 2006). External stakeholders determine the organisation achievements. External stakeholders are supposed to be chosen with care to ensure that an organisation enjoys a long term success in china. Carrying out business in china is supposed to be cooperative and interpersonal. The friendship with external stakeholders should be based on Guanxi but not contracts. The external shareholders helps the organisation to gain access to markets, resources, licences and enhances smooth transactions among other benefits. The hierarchy of coalitions between external and internal partners helps a lot in coming up with the Guanxi hierarchy of relationships (Chenting, Ronald & Sirgy, 2006). Main Guanxi stakeholders are able to serve the needs of other external stakeholders. The Guanxi groups are also capable of exerting pressure on the internal organisation stakeholders. Through the provision of resources such as money, information and raw materials major stakeholders can have great influence on the core Guanxi stakeholders. Major Guanxi stakeholders’ types of relationships are also influenced by the peripheral stakeholder who includes social critics and industry leaders. There is need to have good and elaborate identification of the most important Guanxi partners. This will help in securing resources at minimal costs which is vital for firm survival. China business is based on Guanxi. Though some firms are able to survive with Guanxi as proved by Wal-Mart, the role it plays cannot be ignored. Wal-Mart has resource advantage hence may downplay the importance of Guanxi. An Australian firm have to establish and maintain an effective Guanxi in China in order to operate smoothly. The process of Guanxi cultivation is costly and takes time. There is need to identify processes which can help to improve and maintain Guanxi. There is need to understand that through relationships, it is easier to ensure that the business have adequate resources at reasonable price. There is a need for effective internal and external coalitions for mutual benefit (Chenting, Ronald & Sirgy, 2006). This will ensure that the Australian firm is able to adapt to the Chinese culture. Conclusion Building relationship in East Asian countries is very important due to the influence of Guanxi. China business relations are based on Confucianism which stresses the importance of interdependence relationships. When doing business between Australia and China, there is a need for adoption of Guanxi. Chinese business negotiations are based on Guanxi. It’s important to note the vital role played by negotiations in business. The business environment requires a negotiator who is able to deal with the entire business relationship from start to the end. Chinese people prefer to deal with people they know well and trust. This makes it prudent to establish a good relationship before engaging in a business contract. As explained, verbal contract in china are treated with equal measures as a written contract when Guanxi is used. Business negotiations in China are purely based on Guanxi, which makes it important to understand it. For the Australian firm entering China, there is a need to understand five key concepts related to Guanxi which are; Li, Xiao, Ren, Junzi and Zhengming. These five themes help one to have an in-depth understanding of Guanxi. There is a need to differentiate Guanxi and bribe to avoid getting into trouble with law. Guanxi is based on long term relationship unlike bribe. Guanxi is very strong in China and can be enhanced through frequent contact. There is a need to use business cards as a mean of enhancing Guanxi. There is also need to understand the role played by Guanxi in making decisions. This is due to fact that personal relations play a very important role in decision making. Coming up with Guanxi stakeholders’ model will help a lot in determining the hierarchy and the criticality of the Guanxi stakeholders. Effective use of Guanxi will make conducting business between China and Australia easier. References Chenting S., Ronald, K., M., Sirgy, M.J. 2006, “Enabling Guanxi Management in China: A Hierarchical Stakeholder Model of Effective Guanxi,” Journal of Business Ethics, Vol.33, no.1 p.1-29 http://www.ronaldmitchell.org/publications/guanxi2.pdf Guan, J. 2011, “Guanxi: The Key to Achieving Success in China” Sino Platonic Papers, 217 (December, 2011) http://sino-platonic.org/complete/spp217_guanxi.pdf Hammond, S.C., & Glenn, L.M., 2004, “The ancient practice of Chinese social networking: Guanxi and social network theory,” E: CO Special Double Issue, Vol. 6, no.1-2, pp. 24- 31. https://emergentpublications.com/ECO/ECO_other/Issue_6_12_6_AC.pdf?AspxAutoDet ectCoo kieSupport=1 Hitt, M.A. Lee, H. & Yucel, E. 2002, “The Importance of Social Capital to the Management of Multinational Enterprises: Relational Networks Among Asian and Western Firms Asia Pacific”, Journal of Management, Vol.19, no.1, p.353-372. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=2&ved=0CCgQFjAB&ur l=http%3A%2F%2Fwww.researchgate.net%2Fprofile%2FMichael_Hitt%2Fpublication %2F227190806_The_Importance_of_Social_Capital_to_the_Management_of_Multinatio nal_Enterprises_Relational_Networks_Among_Asian_and_Western_Firms%2Flinks%2F 02e7e52cc7e435ab09000000.pdf&ei=puP6VNe5GsXvUJSMg4AE&usg=AFQjCNERz_ HYiBKj8j-RgIxLb 57DsSOyg&sig2=THoHY3nzjwUVVExN4lty9A&bvm=bv.87611401,d.d24 Jayaraman, K. 2009, “Doing business in China: A risk analysis,” Journal of Emerging Knowledge on Emerging Markets, Vol.1, no.1. p. 55-60. http://digitalcommons.kennesaw.edu/cgi/viewcontent.cgi?article=1006&context=jekem Kwock, B. Mark X. J., & Tsui, A.S.C.2013, “Doing Business in China: What is the Use of Having a Contract? The Rule of Law and Guanxi when Doing Business in China,” Journal of Business Studies Quarterly, Volume 4, no.4, p.1-12. http://jbsq.org/wp- content/uploads/2013/06/June_2013_4.pdf Lin, T.W. 2004, “Business Strategy and Guanxi Business Strategies,” Marshall Review, Vol.2, no. 4, p.1-4. https://msbfile03.usc.edu/digitalmeasures/wtlin/intellcont/Lin%20%20Business%20Strat egy%20and%20Guanxi-1.pdf Tung, R., Worm, V. & Fang, T. 2008, “Sino-Western business negotiations revisited-30 years after China’s open door policy,” Organizational Dynamics, Vol. 37, no. 1, pp. 60-74, https://www.academia.edu/523775/Tung_Worm_and_Fang_2008_._Sino- Western_business_negotiations_revisited_30_years_after_China_s_open_door_policy Vanhonacker, W. R.2004, “Guanxi Networks In China, How to be the spider, not the fly, The China Business Review,” (May–June 2004) http://www.mabrito.net/summer/420/Guanxi%20in%20China.pdf Wang,J. Wang, G. G., Aruona, W. & Rojewski, J.W. 2005, “Confucian Values and the Implications for International HRD,” Human Resource Development International, Vol.8,No.3, p.311-326, http://org8220renner.alliant.wikispaces.net/file/view/HRD+wang+hr+intl+confucian+val ues.pdf Yan, L. & Hafsi, T. 2007, “Understand Chinese Business Behaviour: A historical perspective from three kingdoms to modern China,” Cahier de recherché, no. 07-32-05 (January 2007) http://neumann.hec.ca/chairemsi/pdfcahiersrech/07_32_05.pdf Yang, F. 2011, “The Importance of Guanxi to Multinational Companies in China,” Asian Social Science, Vol. 7, No. 7, p.163-167. http://www.ccsenet.org/journal/index.php/ass/article/viewFile/9446/7998 Zhu, Y., McKenna, B. & Sun, Z. 2007, “Negotiating with Chinese: success of initial meetings is the key,” Cross Cultural Management: An International Journal, Vol. 14 No. 4, pp. 354- 364. http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=4&cad=rja&uact =8&ved=0CDIQFjAD&url=http%3A%2F%2Fwww.researchgate.net%2Fprofile%2FBer nard_McKenna%2Fpublication%2F43476250_Negotiating_with_Chinese_Success_of_in itial_meetings_is_the_key%2Flinks%2F09e4150b7da2dd0fca000000.pdf&ei=R- P6VImNJYa7UeaVhIgE&usg=AFQjCNHBFMTkBYbfuCciet476OyuGLTOCA&sig2=n IBeNpfaF37L0qyWnYGgDg&bvm=bv.87611401,d.d24 Zhuo, C. & Guang, H. 2007, “Gift Giving Culture in China and its Cultural Values”, Harbin Institute of Technology, Intercultural Communication Studies, Vol.15, no.2. p. 81-88. http://www.uri.edu/iaics/content/2007v%2016n2/06%20Han%20and%20Chen.pdf Read More