Overcoming liability of outsidership in China: The experience of Brazilian companies in developing Guanxi

Authors

  • Janaina Mortari Schiavini Universidade do Vale do Rio dos Sinos - Unisinos, São Leopoldo, RS
  • Flavia Luciane Scherer Universidade Federal de Santa Maria – UFSM, Santa Maria, RS

DOI:

https://doi.org/10.18568/1980-4865.10344-57

Keywords:

Internacionalization, Liability of Outsidership, Guanxi, Networks, China

Abstract

In light of discussions on corporate internationalization, a theoretical approach advocates that the main barriers to internationalization are related to the burden of being outside international relationship networks, that is, so-called liability of outsidership. Given China’s relevance to Brazil and the complexity of that country’s business relations (guanxi), this study aims to investigate how Brazilian companies operating in China develop guanxi as a means of overcoming liability of outsidership, based on Chen and Chen’s theoretical framework (2004). A descriptive and qualitative study was conducted analyzing multiple cases in four Brazilian companies from the services sector with offices in China. Data were collected through semi-structured interviews. Data were treated by content analysis using NVivo 8.0 software. The results identified the motives behind internationalization to China, the difficulties encountered due to the liability of outsidership, the significant benefits of guanxi, and activities carried out in order to develop it. This study is expected to contribute to generating knowledge on the internationalization of companies to China.

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Author Biographies

Janaina Mortari Schiavini, Universidade do Vale do Rio dos Sinos - Unisinos, São Leopoldo, RS

Professora do curso de Administração, Gestão da Produção Industrial e Comércio Exterior na Universidade Feevale (2014). Mestre em Administração no PPGA/UFSM (2012). Graduação em Administração pela Universidade Federal de Santa Maria (2009). Realiza estudos focados na linha de negócios e gestão internacional.

Flavia Luciane Scherer, Universidade Federal de Santa Maria – UFSM, Santa Maria, RS

Doutora em Administração pela Universidade Federal de Minas Gerais e professora adjunta no PPGA na Universidade Federal de Santa Maria.

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Published

2015-12-18

How to Cite

Schiavini, J. M., & Scherer, F. L. (2015). Overcoming liability of outsidership in China: The experience of Brazilian companies in developing Guanxi. Internext - International Business and Management Review, 10(3), 44–57. https://doi.org/10.18568/1980-4865.10344-57

Issue

Vol. 10 No. 3 (2015): September/December 2015

Section

Article

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