Role of Relationship Marketing in International Business: China and Japan - Essay Example

The role of relationship marketing in international business: China and Japan Introduction This dissertation proposal presents data on the core importance of cross-cultural awareness in doing business with foreign partners. The importance of relationship marketing and a great interest to it internationally during the last decade can be explained by the fact that under conditions of globalization, it is necessary for businessmen to be aware of cultural peculiarities of their partners’ countries. It is obvious that in order to reach success in business, it is relevant to reach mutual understanding between business partners. It is naturally, that with no awareness of religious, symbolic and other peculiarities of a country-partner it is impossible to reach understanding and gain your business partners. Many failures in business happen due to the lack of knowledge in the field of cross cultural differences. A lot of works are devoted to research and discussion about relationship marketing either with regard to customers’ study, industrial businesses, and business-to-business marketing and other aspects. The main focus of this proposal is works devoted to the discussion of the relational view (Anderson and Narus, 1990; Dwyer et al., 1987). This choice can be explained by the sources’ relevance to the countries chosen for this proposal: China and Japan. In accordance with the relational view, a specificity of South countries is reflected in their peculiar attitude to personal attention in business. These countries are focused on background information on their partners and human factor is of high importance to them. Problem statement In the process of dissertation proposal it is intended to find out peculiarities of target businesses’ cultures (in China and Japan) and work out strategies and methods for foreign partners to do their business in compliance with the cultural background of businesses in South countries. Conceptual framework Many studies have been conducted to research the cross cultural differences of various aspects in personality behavior – starting from psychological side, and ending with the difference in business leadership and online and computer attitudes; however there is still a question – whether these the results of these studies are relevant and is it possible to assume that cross cultural differences exist – or based on the older economic theories, all personalities have similar behavioral patterns which are not different across cultures? The experimental researches conducted in the area of cross cultural differences in personality have found that people behave in different and various ways, in distinction from the basic economic theory that the phenomenon of personality is traditionally common across different ethnic groups. When one endeavors to discover the reasons and cores of this controversy, it appears that the great extent of impact is created by the social environment people live in. this is why cultural element in defining the reasons of cross cultural differences is essential in this study and in personality differences as such. If one takes two different regions of the globe and considers the differences between these two regions as well as the changes in the personality which occur under these two different environments, as well as the differences between the personalities traditionally found in both societies, they will not only be geographically distant, but also culturally which will ultimately define these or those behavioral patterns accepted in this or that society under research. A basic theoretical background for further analysis of target cultures and businesses are Hofstede’s model and Hall’s model of cultural dimensions. The model of cultural dimensions worked out by Geert Hofstede has four main points. On the basis of these points the researcher claims that it is possible to differentiate the cultures ((Hofstede et al, 2007). The relevance of this model was higher in 90s than now. Nowadays an emphasis is made on an intercultural communication (the model of cultural dimensions produced by Hall). Nevertheless in order to study cultures of China and Japan to the fullest extent, it is relevant to refer to the model produced by Hofstede. The first point is individualism-collectivism. This point defines primary concern of the source culture (individualism or collectivism). The second point is uncertainty avoidance. Thus this dimension defines the level of risk taking in different cultures. The third point is focused on power distance. In other words, this dimension determines the way people of the source country view power and makes decisions with regard to this concept. Hall’s model “categorizes cultures as being either high or low context” (Hall, 1990). He defines the context as “the information that surrounds an event; it is inextricably bound up with the meaning of the event” (Hall, 1990). If the source country is of high context, then “information is already in the person”. (Hall, 1990) Little information is encoded or symbolically hidden. If the source country is of a low context communication, then the major part of information is hidden or explicitly encoded”. Consequently, in high context cultures many non-verbal factors are used (gestures, silence, etc). In low context cultures words are the only truthful means to transfer the real meaning. How to do business in China On the basis of works by Ambler, T., Witzel, M. (2002), Mann, J. (1997), Wong, Y. H., Chan, R. Y. (1999) and others the following data on culture-in-business in China is summarized. China belongs to countries with a high context. For example, before starting business in China it is necessary to be aware of its changing holidays (Chinese Lunar New Year). This period may be the reason for two-week holidays. Chinese are greatly concerned about their culture. Therefore for successful business it is necessary to be aware of Chinese political, cultural and historical background. Western business partners usually have little knowledge about Chinese culture thus making Chinese indignant. An emphasis of the modern researches is made on importance of abundant Chinese culture. Another aspect witnesses that Chinese have no gender prejudgments. Thus both women and men can be negotiators in this country. Vice versa, Chinese respective attitude to women should be taken into account by business partners. Chinese concern about punctuality is another important aspect of doing business in China. Moreover, high context of China can be seen in the unspoken tradition for their business partners to enter the room being guided by the person of the highest rank. Chinese are used to respect seniority. Therefore a conversation between the persons with the highest ranks is appropriate with no interrupt from other delegates. Nevertheless, the decision making in Chinese firms can be influenced on different levels. Thus it is necessary to treat every employee of Chinese firm with respect. Chinese are concerned about brief and clear expressions, statements, factual proposals etc. Thus exactness in everything is of their primary concern. Nevertheless, a long-term establishment of good business relationship with China underlines China’s careful decision making and Chinese bureaucracy, which is referred to by Hoofstede as collectivism being of primary concern for Chinese. High context of China is also seen in the great role of colors in this country. Therefore in the researches on Chinese RM it is underlined that for business partners it is more appropriate to use black and white colors. Negotiating strategy of Chinese is a hospitality-in-everything. In such a way, they treat their business partners as special guests. In the reality they act in accordance with generally accepted business templates. Nevertheless, Chinese attitude to individual gifts from their business partners is negative. It is possible to present the whole company a gift, but not individually. Otherwise embarrassment occurs and negotiations are hampered. In the sphere of gifts, such things as clock (symbol of funerals), food are inappropriate. At this point it is clearly seen high context of Chinese culture. Chinese are concerned about entertainment of their business partners. Thus a banquet is another form of expressing hospitality by Chinese. It is necessary to remember that business partners have to organize banquet for their Chinese partners as well. Everyone who took part in negotiations should be included into the guest list, because decision making, as it was mentioned above, can be influenced by any participant of negotiations. How to do business in Japan The works by Bagozzi, R. (1995), Lin, X. (2007), Whitley, R. (1992) and others are the background of further summarizing and discussion of culture-in business in Japan. Before starting up a business in Japan, it is necessary to be aware of the fact that this country is of high context too. Non-verbal means of expression of cultural peculiarities are wide-spread in the business world of the country. The studies conducted by different researchers were directed on different aspects of business culture in Japan. Japanese are concerned about international business that’s why being aware of RM is very important for their business partners. In accordance with Hofstede’s model of cultural dimensions, Japan is concerned about individualism, not collectivism, like in China. Before starting up a business in Japan, it is necessary to be introduced by a firm with a good reputation to Japanese firm. Background information on a potential business partner will be discussed in detail by Japanese. Moreover, background information on the education of potential business partner, his business reputation and other facts from his biography will be properly studied by Japanese. In order to reach a friendly atmosphere in relations with Japanese, it is necessary to pay a proper attention to background information of Japanese business partners. Therefore personal relations come first, and then come business. Japanese are greatly concerned even about the way their business partners take their business cards (it is necessary to put business cards of Japanese to the wallet, and not to a pocket or a briefcase). Consequently the whole process of business conduct with Japanese should be focused on personal approach to the firm of this country. Advantages of business conduct between Japanese firm and a foreign firm should be emphasized. It is necessary to show that not only signing a contract is a crucial issue for foreign firm, but also personal relations and further successful business. The attitude to power, defined by Hofstede as one of the determinants of the culture, is of primary concern to Japanese. Thus, unlike Chinese, they claim to conduct negotiations on equal level, i.e. it is better to talk to your counterpart or superior and not to a manager of the lower rank. A principle of superiority is also respected by Japanese, only there is a strict determination of decision-making participants unlike in China, where every member of the company can make his own contribution to a final decision-making and influence the process of negotiations. Thus during negotiations Japanese subordinates can keep silence at all and manager would speak. Nevertheless he doesn’t give direct orders to his subordinates. Japanese manager is an advisor, a father and instructor for his subordinates. Unlike Chinese, Japanese have gender prejudgments and there are no women in managerial positions, though Japanese can accept female managers from foreign firms as negotiators. The level of risk taking in Japan is high, though they have long-term discussions of different levels before signing a contract. Foreign partners can be irritated by a slow process of decision making by Japanese. Nevertheless it is necessary to be patient and treat their business traditions with understanding and respect. Other cultural peculiarities of business conduct in Japan, such as a laugh during a meeting (usually indicating shock, embarrassment), silence (a difficulty to reach decision making by Japanese), should be taken into account. RM studies have a little concern about such ‘little peculiarities’ though their role and influence can be great for foreign partners. A little attention is paid to the importance of astrology role in business with Japanese (Dwyer et al, 1987). Another cultural peculiarity of Japanese business is Japanese attitude to the entertainment of their foreign business partners. In China banquet is expected to be repaid, in Japan it is not expected to repay for hospitality. If foreign business partners want to repay for the hospitality, it is better to invite the most important members of Japanese firm to dinner. Japanese order for their business partners thus showing once again that they are focused on the individuality. Gender prejudices of Japanese are also revealed in their manner not to take their wives to business dinners. This tradition can be explained by the evening ending at geisha house. Japanese businessmen are used to invite their business partners to have hashigo evening, i.e. to drink. In order to be polite and at the same time be sober, foreign partners should take sips. Then business partners are invited to karaoke bar in order to sing a song (which is obligatory for all members of delegation) and get drunk. In such a way, Japanese want to reveal your secrets and see your hidden thoughts. So, it is necessary to remain sober and conscious till the end of the long-term hospitality. Japanese give presents to their business partners and expect to get something back (pens with logo of the company etc). Methods The research methodology used in this proposal begins with discussion of RM role, Hofstede’s and Hall’s models and concludes with projection of these information on doing business in China and Japan. Practical strategies of behavior for business partners are suggested and extended by the author of the proposal. Conclusion The importance of relationship marketing and a great interest to it during the last decade is understandable because under conditions of globalization, it is necessary for businessmen to be aware of cultural peculiarities of their partners’ states. Thus, this dissertation proposal presents data on the core importance of cross-cultural awareness in doing business with foreign partners. Many different investigations have been conducted to research the cross cultural differences of various aspects in personality behavior – starting from psychological side, and ending with the difference in business leadership and online and computer attitudes. In accordance with theoretical background on RM importance, Hofstede’s and Hall’s models of cultural dimensions, culture-in-business of China and Japan are discussed in this paper. Practical data collected from the results of the researches conducted on business peculiarities of the abovementioned countries is an empirical material for the further research. A lack of required information on the necessity of cultural background of business in South countries presents a wide range of potential researches directed on the study of these issues. Attention of the researchers should be focused on an attentive and detailed discussion of step-by-step business conduct in China and Japan. High context of these countries (in accordance with Hall’s model); focus on collectivism in China and individualism in Japan and many other issues discussed in this proposal open new horizons for comparison and contrasting these two countries and their cultural and business peculiarities. This direction of further research leads to a strategic development of business behavior internationally, on different levels and thus is relevant to all countries. Works cited 1. Ambler, T., Witzel, M., 2002. Doing Business in China. NY: Routledge. 2. Anderson, J. C., Narus A., 1992. A Model of Distributor Firm and Manufacture Firm Working Partnerships. Journal of Marketing, 54, pp.42-58. 3. Bagozzi, R., 1995. Reflections on relationship marketing in consumer markets. Journal of the Academy of Marketing Science, 23 (4), pp. 272-277. 4. Dwyer, F. R., Schurr, P. H., Oh, Sejo, 1987. Developing Buyer-Seller Relationships. Journal of Marketing Research, 51, pp.11-27. 5. Hofstede, G., 2007. A European in Asia. Asian Journal of Social Psychology, 10, pp. 16–21. 6. Lin, X., 2007. Cultural Dimensions and Conversational Strategies—Conversational Strategies Adopted in Different Cultures and the Way to Bridge the Gap. US-China Foreign Language, 5(4), pp. 71-79. 7. Mann, J., 1997. Beijing Jeep. A Case Study of Western Business in China. Boulder: Westview. 8. Whitley, R., 1992. East Asian Business Systems. London: Sage. 9. Wong, Y. H., Chan, R. Y., 1999. Relationship Marketing in China: Guanxi, Favouritism and Adaptation. Journal of Business Ethics, 22 (2), pp. 32-54. Read More