Aim: To understand the influence of guanxi and trust on business to business relationships in the Chinese market. Method: This study was conducted based on an inductive qualitative research method with the use of primary and secondary data. A case study, with semi-structured interview questions and open-end questionnaire, were used for the collection of primary data. In total 27employees were interviewed, 13 through an online application and 14 through an online survey. Result & Conclusions: Guanxi and trust are inseparable and complement each other when building B2B relationships. Renqing and ganqing are part of guanxi which can influence guanxi directly. Trust can be divided into interpersonal and organizational trust and both can build B2B relationships. For the creation of a long-term relationship between business partners, both guanxi and trust are essential to maintain and strengthen the relationship. Suggestion for future research: Because of the limited number of interviews and circumstances, the results of this research are based in one company and three of its business partners. All the interviewed employees work in China and are specialized in the pharmaceutical industry. Therefore, the results are difficult to be generalized, but further studies can be conducted in different fields and industries, such as government-owned companies and various business scopes to investigate if the different levels of guanxi and trust influence business relationships or performance. Contribution of the study: This study contributes to the understanding of how guanxi and trust influence relationships between business partners in China. No matter which starts the initial B2B relationship, both trust and guanxi are essential in building, maintain and strengthening B2B relationships.

As China has become one of the largest economic entities in the world, many studies focus on corporate governance in China. In 2001, the China Securities Regulatory Commission (CSRC) transplanted the outside director mechanism from the United States and the United Kingdom. CSRC hoped that outside directors could play a control role to monitor the behaviours of controlling shareholders, protecting the interests of minority shareholders. However, since it was established, the Chinese outside director mechanism has played an unsatisfactory control role because they are not truly independent of the controlling shareholders. In contrast, many Chinese outside directors use their Guanxi connections (a particular kind of social connections in China) to play a resource acquisition role very well. Based on the theories of the firm, the resource dependence theory, studies of Guanxi and the path dependence theory, this thesis finds that when Chinese outside directors use their Guanxi connections to play their resource acquisition role, their independence and fiduciary duties required by CSRC is compromised.

This qualitative, single case study research analyzes the stakeholder relationship cultivation strategies employed by LinkedIn China and its sub-brand Chitu. It also examines the extent to which the propositions of stakeholder theory and relationship management theory are applicable in a Chinese public relations context. Observations were made through analysis of documentation, interviews, direct observations and participant-observation. The results show that stakeholder theory and relationship management theory alone could not adequately explain the ways in which LinkedIn China and Chitu establish and maintain relationships with their stakeholders. This research discovered that additional theories are needed to explain LinkedIn China's success in relationship building. These theories include the Arthur W. Page Society's Building Belief Model and its Page principles; moreover, relationships between LinkedIn China and its stakeholders were forged and cultivated through CEO communication, personal influence, and issues management. The study also reviews how Guanxi, as an evolving cultural factor, affects LinkedIn China's decision-making and public relations strategies. Finally, this study offers practical insights for foreign organizations that need to nurture relationships with stakeholders in China.

This study examines the effects of organizational ethical culture, idealism, relativism and guanxi orientation on the ethical decision-making processes of professional auditors in the People’s Republic of China (PRC). It is hypothesized that auditors perceiving a positive organizational ethical culture, possessing higher (lower) degrees of idealism (relativism), and possessing lower degrees of guanxi orientation will make more ethical decisions. The findings of the study indicate that certain aspects of organizational ethical culture had a significant effect on professional auditors’ behavioural intentions, but not on their ethical judgments. Idealism had a marginally significant impact on professional auditors’ behavioral intentions, but not on their ethical judgments. Relativism did not have a significant impact on ethical judgments or behavioral intentions. Guanxi orientation had a significant effect on professional auditors’ behavioural intentions, but not on their ethical judgments. This study also explores the potential effects of demographics on PRC professional auditors’ ethical decision-making processes and the results suggest that CPA firm type (local/regional vs. international) had a significant effect on professional auditors’ behavioural intentions. The overall findings suggest that organizational ethical culture, idealism, guanxi orientation, and CPA firm type play a significant role in PRC professional auditors’ ethical decision-making processes.

The aim of this paper is to explore what factors affect the survival of international joint ventures involving Chinese family business. The results show that “Wulun” ， “ Guanxi -based trust”, and communication as the main factors, control, and “Mianzi” could influence on the survival of IJV. Among them, “Wulun,” “Guanxi-based trust,” and “Mianzi” derived from Confucian culture.

This study involves a first attempt to identify Chinese auditors’ values and examines their effects on ethical ideologies and ethical judgments and intentions. A survey methodology is used and the survey instrument includes a self-administered questionnaire and a short auditing ethical case. A sample of Chinese CPAs with auditing experience was drawn from accounting firms located in Shenzhen, Hangzhou, Beijing, and Kunming cities during 2006-7. Three hundred and twenty-five useable responses were received. The theoretical framework for this study is based on Forsyth’s (1980) model of ethical ideologies. This study identifies Chinese auditors’ cultural values as (1) Chinese traditional cultural values, (2) interpersonal relationships (guanxi), and (3) attitudes towards money. This study posits that Chinese auditors’ cultural values will impact on their ethical ideologies and that their ethical judgments and intentions are, in turn influenced by the ideologies they prefer. In this study, Chinese auditors’ ethical judgments and intentions are examined using a well understood ethical dilemma in auditing, specifically whether an auditor should accept a client’s suggestion to inappropriately alter the financial position or to adhere to accounting and professional standards. Four research questions are proposed in this study: 1. What national cultural values best describe Chinese auditors? 2. How do Chinese cultural values impact ethical ideologies (i.e., Idealism and Relativism) as they apply to practicing auditors? 3. Do identifiable ethical ideologies, adopted by auditors, influence the decision making process in issues relating to audit independence? In particular, ethical judgments and intentions. 4. How do certain contextual matters, namely firms’ ethical culture and personal factors influence ethical ideologies? / Chinese auditors’ beliefs about their national cultural values are measured using the Chinese Cultural Values (CVS) used in the Chinese Culture Connection (1987). Chinese auditors’ guanxi orientations are measured using a 12 item scale based on Ang and Leong’s (2000) 9 items favour-seeking guanxi scale and three items constructed by the author concerned with rent-seeking guanxi orientations. Chinese auditors’ attitudes towards money are measured using Tang and Chiu’s (2003) the Love of Money Scale (LMOS) scale. Chinese auditors’ beliefs about their firms’ ethical cultures are measured using Hunt et al.’s (1989) corporate ethical values scale. Chinese auditors’ ethical ideologies are determined by using Forsyth’s (1980) ethical position questionnaire (EPQ). Finally, Chinese auditors’ ethical judgments and intentions are measured using an auditing case study. The major statistical methods used in this study are descriptive, t-tests, correlations, and regression analysis. The following significant results are presented in this study: 1. Chinese auditors display strong views about their traditional cultural values in four of the five national dimensions, the exception being Confucian Work dynamism past orientation. Young auditors appear less concerned with Integration issues compared to their older counterparts. Again, younger and less experienced auditors display less interest in the Human-heartedness dimension compared to their older counterparts. Auditors with Masters Degrees identify less with Confucian Work dynamism future orientations when compared to those who hold a Bachelors degree. / Attitudes towards the Confucian Work dynamism dimension future orientation are found to be positively associated with Idealism, however attitudes relating to Confucian Work dynamism dimension past orientation component are found to be negatively associated with Idealism. Further, attitudes relating to Confucian Work dynamism dimension past orientation component are found to be negatively associated with Relativism. 2. Chinese auditors display significantly higher mean scores in both favour-seeking and rent-seeking guanxi orientations. Young and less experienced auditors are more likely to use rent-seeking guanxi than older and experienced auditors. Chinese auditors’ rent-seeking guanxi orientations are found to be negatively associated with Idealism and both favour-seeking and rent-seeking guanxi orientations are found to be positively associated with Relativism. 3. Chinese auditors’ attitudes towards money are high in two of the four dimensions relating to the love of money, namely the importance of money and the desire to be rich dimensions. Their attitudes towards money are significantly higher than for Hong Kong employees. Male auditors displayed significantly higher mean scores in the desire to be rich dimension than female auditors. Young auditors have significantly higher mean scores in the success and motivator dimensions compared to older auditors. Chinese auditors’ beliefs about the importance of money are found to be positively associated with Relativism. Interestingly, no association with Idealism was identified in this study. 4. Chinese auditors have stronger beliefs about their firms’ ethical cultures to compare the mid-point value but their beliefs are significantly lower than for American subjects. / Junior and senior auditors are less likely to believe their managers display unethical behavior compared to accounting firm partners. Auditors employed in work environments where punishment systems exist are likely to disclose attitudes that are positively associated with Idealism. Alternatively, auditors employed in work environments where managers are believed to display unethical behaviour are likely to disclose attitudes that are positively associated with Relativism. 5. Chinese auditors display relatively higher ethical positions (on both Idealism and Relativism) to compare the mid-point value. Males hold stronger relativist positions than females and older auditors are more idealistic than their youthful counterparts. Auditors who hold senior positions are more likely to be relativists compared to juniors. Chinese auditors’ ethical judgments are found to be positively associated with Idealism and negatively associated with Relativism. However, their ethical intentions are only found to be negatively associated with Relativism. Young auditors appear less ethical in terms of their judgments than older auditors and less experienced auditors are less intentioned compared to experienced auditors. This study contributes to our understanding of Chinese auditors’ values and their ethical ideologies and the effects these have on their ethical judgments and intentions. It is the first research to include a wide range of ethical decision-making factors within a business context in China using qualified CPAs. It is believed that valuable insights have been gained about the various cultural factors influencing ideological processes and how these flow through to the decision making level. / The study also contributes to the existing body of knowledge by providing additional evidence that ethical decision making is a universal concept involving moral philosophies such as those suggested by Forsyth (1980) and Hunt and Vitell (1986) and applies in an auditing context in China. Moreover, this study develops a rent-seeking guanxi scale based on Su et al.’s (2003) classification of guanxi orientations and Ang and Leong’s (2000) guanxi scale. It contributes by providing a scale to measure the extent to which business relationships involves back door deals and power dependence. One of the significant contributions of this study is that it contributes to the construction of a meaningful measure for the guanxi scale which includes favour-seeking guanxi and specifically for the first time, rent-seeking guanxi. Thus a confirmatory analysis with an independent sample could be used in the future to re-test the guanxi scale with the two dimensions developed in this study. contributions of this study is that it contributes to the construction of a meaningful measure for the guanxi scale which includes favour-seeking guanxi and specifically for the first time, rent-seeking guanxi. Thus a confirmatory analysis with an independent sample could be used in the future to re-test the guanxi scale with the two dimensions developed in this study.

<p>Research Question: What are the factors making the enterprises in China and influencing their behavior and development?</p><p>Aim of Thesis: The thesis was initiated because there are many young people want to have his/her own business in China. The authors aim to discover the key elements of making an enterprise in China and expect the research can help those entrepreneurs to find a most suitable way to start their own venture in China.</p><p>Method: Semi‐structured interview is used in the qualitative perspective to evaluate the research. The primary data is collected in a qualitative manner by interview with the entrepreneurs of the case companies. Secondary data is collected from company material and web pages.</p><p>Conclusion: In the study it was concluded that entrepreneurship, national culture and government policy are the major elements that affect the development and behavior of Chinese enterprises. And In China, unlike western world, government policy and national culture are regarded to be more important than entrepreneurship. It is a characteristic of an Asian socialism country.</p>

<p>This study has been written to increase our knowledge about Sino-Western business relations and to understand how to successfully embark in China. It aims to create a deeper context understanding of the Chinese consumer and the Chinese market – in order to successfully manage your business in China. A qualitative case study methodology is used, involving the abductive method and a hermeneutic approach. Appropriate interviewees have been selected, i.e. those having valid and reliable insights and experiences to this study. The empirical results are portrayed as short stories along with reflections, to enlighten key findings in the research. Results of the investigation show that a willingness to understand and being humble are key in the creation of a successful business relationship with the Chinese. Certainly, the importance of guanxi and trust are tremendous. Thus, learn the rules and play by them – use them to your advantage. Show empathy and patience and trust the universal law of reciprocity. Indeed, as we understand the underlying forces, the cultural values and traditions, we appreciate how to effectively communicate with the Chinese and ultimately how to deliver value to create a healthy business relationship in our marketing efforts. A plethora of stories are presented that illuminate various situations that experienced Western business managers have encountered, and how to manage these. Key findings in this research may benefit not only academics, as new theory is introduced, but also everyone interested in China and aiming to create a healthy Sino-Western relationship. Finally, top managerial implications are presented that are of relevance to readers both intending to and already doing business in China. Some of the most important ones advise us to remain patient, to gather all the information possible and to never underestimate the Chinese.</p>

<p>Aim: The aim is to explore the Chinese way of marketing activities in township enterprises by linking the formation and implementation of marketing strategies and tactics with the impacts of environmental factors and contextual conditions. Specifically, the aims are:</p><p>- Identify the managers’ perceptions of their marketing environments;</p><p>- Explore how their perceptions of the environments shape the formation and implementation of the marketing strategies and tactics;</p><p>- Explore how social cultural values influence the marketing activities at these enterprises,</p><p>Method: Fieldwork was conducted in the summer 2007, at three enterprises in Fujian province in southern China. In depth case analysis was employed in this study. Interview guides, designed to learn their experience through their own words were used.</p><p>Result and Conclusion: The research reveals that unique Chinese social and cultural values are deeply ingrained in the three township enterprises’ marketing practices. It also reveals that a competitor centred orientation, competitive advantages based on low cost labour and marketing expansion, and an innovative imitation strategy are some of the characteristics of marketing practices.</p><p>Suggestions for future research: One of the disadvantages of a case-based approach is that it may be difficult to achieve generalizability. This research is also limited as it is focused on the three enterprises whose products all fell into consumer goods. Future research could also combine both qualitative and quantitative aspects. Such as looking at data on profits, return on assets and revenue we could also look to see the correlation between performance and market orientation of these types of enterprises.</p><p>Contribution of the thesis: This research provides a reference frame for township enterprises to make their marketing decisions when they are involved in marketing circumstances similar to those presented in this research. Also, the findings may help global marketers to better understand township enterprises with whom they are competing or will compete in the Chinese market.</p>

<p>Aim: After discussing marketing issues with representatives from a number of companies established on the Chinese market, we came to the conclusion that it would be interesting and useful to further investigate relationship marketing models from a Swedish perspective when doing business in China.</p><p> </p><p>The aim of the study is to highlight, by examples and experiences from firms dealing with or on the Chinese market, what makes up successful marketing between Swedish and Chinese businesses.</p><p> </p><p>Research question: Is relationship marketing with a dash of guanxi the recipe of success for Sino-Swedish businesses?</p><p> </p><p>The result of successful relationship marketing is a marketing network and it is an important asset for companies today. Competition is not between single business units or entities any more but between marketing networks (Kotler et al., 2006).</p><p> </p><p>To get a full view of relationship marketing between Sweden and China, we have also studied the Chinese culture context.</p><p> </p><p>Method: We interviewed 10 firms in various industries. Common for all respondents is an extensive experience of over 5 years of doing business in China. A questionnaire was used as a foundation for the interviews.</p><p> </p><p>In the analysis findings regarding how the respondents have handled their internationalization process are highlighted. Also how they handle the relationship marketing on a market, where guanxi have been a dominating way of doing business.</p><p> </p><p>Result and conclusions: Relationship marketing with a dash of guanxi is the road that most companies take already today and should take if not yet doing so. As we can see from the study, China is not under as strong influence of <em>guanxi</em> as it used to be. Our respondents offer insights and examples of that Chinese businessmen and women are adapting a more global approach to business negotiations. Operating on the Chinese market requires a relationship marketing approach although it is more personalized to better suit the Chinese culture context.</p><p> </p><p>Suggestions for future research:</p><p>* Relationship marketing in China and corruption: how is it handled, avoided, viewed.</p><p>* Relationship marketing in Sweden by Chinese firms: How can Chinese firms succeed on the Swedish market?</p><p>* Deeper research into relationship marketing strategies for Swedish companies in China.</p><p>* Study Swedish firms on the Chinese market today and how they experience the paradoxes mentioned by Fang and Faure (2008).</p><p> </p><p>Contribution of the research: The study offers insights in the actual marketing strategy implementation and how firms with extensive experience from China and the Chinese market approach it.</p>