Guanxi as organizational practice and stimulus for intercultural adaptation: experiences of large exporting companies to China
DOI:
https://doi.org/10.18568/internext.v18i3.739Keywords:
International Business, Culture Essay, China, Intercultural Adaptation, Internationalization StrategiesAbstract
Method: This was a multiple case study using in-depth interviews and secondary data research from three major meat exporting companies to China. Additionally, interviews were conducted with ten experts who have experience in the subject. Data analysis was performed using content analysis, supported by ATLAS.ti software.
Main Results: The results show that: the factors of psychic distance between Brazil and China are administration (including legal issues), economic and industrial development, and culture; to deal with these factors, companies demonstrate that they are knowledgeable about and extensively use Guanxi; Guanxi is effectively presented as an organizational practice and as a stimulus for intercultural adaptation and the minimization of psychic distance barriers.
Relevance / Originality: The study contributes to the field of International Business by highlighting the incorporation of Guanxi as an organizational practice among companies operating in China and raising questions about its cultural value, future, and the existence of psychic distance in negotiations. The findings have practical implications as they assist Brazilian entrepreneurs in defining export strategies to China.
Theoretical / Methodological Contributions: The study provides an essential contribution to the theory as Guanxi is a practice already incorporated by companies dealing with China. New questions arise, such as: To what extent is China still a country that values culture (and Guanxi) and how much it is a business-focused country (similar to European and American ones)? What will be the future of Guanxi? Will it cease to exist or adopt another approach? Does a precise psychic distance still exist between countries in international negotiations? Or are they cultural differences that internationalized companies seek to reduce during business dealings?
Downloads
References
Apex Brasil (2020). Mercados Globais e Coronavírus: Relatório de Inteligência de Mercado. Apex Brasil. Retrieved from http://coronavirus.apexbrasil.com.br/info/mercados-globais-e-coronavirusrelatorio-de-inteligencia-de-mercado-ed-3/
Badi, S., Wang, L., & Pryke, S. D. (2016). Relationship marketing in Guanxi networks: A social network analysis study of Chinese construction small and medium-sized enterprises. Industrial Marketing Management, 60, 204-218. https://doi.org/10.1016/j.indmarman.2016.03.014
Bardin, L. (2016). Análise de conteúdo. Edições 70.
Beckerman, W. (1956). Distance and the pattern of intra-European trade. The Review of Economics and Statistics, 38(1), 31-40. https://doi.org/10.2307/1925556
Business Delivery Company (BDCo) (2021). Guia de investimento na China. InvestSP. Retrieved from http://bdco.com.br/wp-content/uploads/2021/09/BDCo-Guia-de-Investimento_link.pdf
Cai, S., Jun, M., Wang, X., & Yang, Z. (2021). On boundary spanners and interfirm embeddedness: The role of guanxi institution in China. Journal of Purchasing and Supply Management, 27(1), 100671. https://doi.org/10.1016/j.pursup.2021.100671
Chen, X. P., Chen, C. C. (2004). On the Intricacies of the Chinese Guanxi: A Process Model of Guanxi Development. Asia Pacific Journal of Management, 21, 305-324. https://doi.org/10.1023/B:APJM.0000036465.19102.d5
Chung, H. F. (2011). Market orientation, guanxi, and business performance. Industrial Marketing Management, 40(4), 522-533. https://doi.org/10.1016/j.indmarman.2010.12.008
Cyrino, A. B., Barcellos, E. P., & Tanure, B. (2010). International trajectories of Brazilian companies: Empirical contribution to the debate on the importance of distance. International Journal of Emerging Markets, 5(3/4), 358-376. https://doi.org/10.1108/17468801011058424
Dow, D., & Karunaratna, A. (2006). Developing a multidimensional instrument to measure psychic distance stimuli. Journal of International Business Studies, 37(5), 578-602.
Farh, J. L., Tsui, A. S. Y., Xin, K. R., & Cheng, B. (1998). The Influence of Relational Demography and Guanxi: The Chinese Case. Organization Science, 9(4), 471-488. https://doi.org/10.1287/orsc.9.4.471
Fernandes, E. B., Cislaghi, T. P. & Wegner, D. (2018). Estabelecendo Relacionamentos com Empresas Chinesas: O Papel do Guanxi no Desenvolvimento da Confiança de um Projeto Colaborativo. Revista Organizações em Contexto, 14(28), 237-264. https://doi.org/10.15603/1982-8756/roc.v14n28p237-264
Fracaroli, F., Melo, S. A. B., & Guevara, A. J. H. (2012). A study on the relevance of Guanxi culture for Latin American companies doing business with China. Revista de Negócios, 17(3), 54-79. https://doi.org/10.7867/1980-4431.2012v17n3p54-79
Freitas, M. E. (2008). O imperativo intercultural na vida e na gestão contemporânea. Organizações & Sociedade, 15(45), 79-89. https://doi.org/10.1590/S1984-92302008000200005
Fu, P. P., Tsui, A. S., & Dess, G. G. (2006). The dynamics of guanxi in Chinese high-tech firms: Implications for knowledge management and decision making. Management International Review, 46(3), 277-305.
Gerhart, B. A. (2008). Cross cultural management research: Assumptions, evidence, and suggested directions. International Journal of Cross Cultural Management, 8(3), 259-274. https://doi.org/10.1177/1470595808096669
Gerhart, B. A., & Fang, M. (2005). National culture and human resource management: assumptions and evidence. International Journal of Human Resource Management, 16(6), 971-986. https://doi.org/10.1080/09585190500120772
Gibbs, G. (2009). Análise de dados qualitativos. Artmed.
Guo, C., Sarkar, S., Zhu, J., & Wang, Y. J. (2020). R&D investment, business performance, and moderating role of Guanxi: Evidence from China. Industrial Marketing Management, 91, 55-63. https://doi.org/10.1016/j.indmarman.2020.08.014
Hajro, A., Gibson, C. B., & Pudelko, M. (2015). Knowledge Exchange Processes in Multicultural Teams: Linking Organizational Diversity Climates to Teams' Effectiveness. Academy of Management Journal, 60(1), 345-372. https://doi.org/10.5465/amj.2014.0442
Hofstede, G. (1980). Culture's Consequences: International differences in work related values. Sage.
Hofstede, G. (1983). National Cultures in Four Dimensions: A Research-Based Theory of Cultural Differences among Nations. International Studies of Management and Organization, 13(1/2), 46-74.
Hong, H. (2010). Bicultural Competence and its Impact on Team Effectiveness. International Journal of Cross-Cultural Management, 10(1), 120-193. https://doi.org/10.1177/1470595809359582
Lee, D. Y., & Dawes, P. L. (2005). Guanxi, Trust, and Long-Term Orientation in Chinese Business Markets. Journal of International Marketing, 13(2), 28-56. https://doi.org/10.1509/jimk.13.2.28.64860
Li, Y., Tian, G. G., & Wang, X. (2021). The effect of Guanxi culture on the voting of independent directors: Evidence from China. Pacific-Basin Finance Journal, 67, 101524. https://doi.org/10.1016/j.pacfin.2021.101524
Liu, Y., Woywode, M., & Xing, Y. (2012). High technology start-up innovation and the role of guanxi: an explorative study in China from an institutional perspective. Prometheus, 30(2), 211-229. https://doi.org/10.1080/08109028.2012.661558
Luo, Y. (2011). Guanxi and business. World Scientific Publishing.
Miao, C., Qian, S., Banks, G. C., & Seers, A. (2019). Supervisor-subordinate guanxi: A meta-analytic review and future research agenda. Human Resource Management Review, 30(2), 100702. https://doi.org/10.1016/j.hrmr.2019.100702
Niu, Y., Deng, F., & Hao, A. W. (2020). Effect of entrepreneurial orientation, collectivistic orientation and swift Guanxi with suppliers on market performance: A study of e-commerce enterprises. Industrial Marketing Management, 88, 35-46. https://doi.org/10.1016/j.indmarman.2020.04.020
Oliva, S., Sánchez, Á., & Muro, L. (2015). Research and development project management best practices and absorptive capacity: Empirical evidence from Spanish firms. International Journal of Project Management, 33(8), 1704-1716. https://doi.org/10.1016/j.ijproman.2015.09.001
Peng, M. W., & Luo, Y. (2000). Managerial Ties and Firm Performance in a Transition Economy: The Nature of a Micro-Macro Link. Academy of Management Journal, 43(3), 486-501. https://doi.org/10.2307/1556406
Reis, R. S. (2015). Creative Process Within Globally Distributed Teams: Brazil, Sweden, France and India. Management and Organizational Studies, 2(1), 1-13. https://doi.org/10.5430/mos.v2n1p1
Schiavini, J. M., & Scherer, F. L. (2015). Superando a liability of outsidership na China: A experiência das empresas brasileiras no desenvolvimento do guanxi. Internext, 10(3), 44-57. https://doi.org/10.18568/1980-4865.10344-57
Schiavini, J. M., Scherer, F. L., & Coronel, D. A. (2012). Entendendo o guanxi e sua influência nas relações internacionais. Revista de Economia Contemporânea, 16(2), 316-332. https://doi.org/10.1590/S1415-98482012000200007
Schneckenberg, D., Truong, Y., & Mazloomi, H. (2015). Microfoundations of Innovative Capabilities: The Leverage of Collaborative Technologies on Organizational Learning and Knowledge Management in a Multinational Corporation. Technological Forecasting and Social Change, 100, 356-368. https://doi.org/10.1016/j.techfore.2015.08.008
Silva, L. G. F. S., Abrão, R. A. F., Rodrigues, V. C. P., & Silva, V. G. (2021). Comércio Brasil-China e seus três pilares: soja, petróleo e minério de ferro. Retrieved from: https://opeb.org/2021/04/24/comercio-brasil-china-e-seus-tres-pilares-soja-petroleo-e-minerio-de-ferro/#:~:text=A%20China%20%C3%A9%20o%20principal,tornado%20cada%20vez%20mais%20intensas
Smith, D. J., Chen, J. & Anderson, H. D. (2015). The influence of firm financial position and industry characteristics on capital structure adjustment, Accounting & Finance, 55(4), 1135-1169. https://doi.org/10.1111/acfi.12083
Smith, M. P. V., & Lyles, M. (2011). Handbook of organizational learning and knowledge management (2ª ed.). Wiley.
Standifird, S. (2006). Using Guanxi to Establish Corporate Reputation in China. Corporate Reputation Review, 9, 171-178. https://doi.org/10.1057/palgrave.crr.1550026
Taylor, S., & Osland, J. (2011). The Impact of Intercultural Communication on Global Organizational Learning. Handbook of Organizational Learning and Knowledge Management. https://doi.org/10.1002/9781119207245.ch26
United Nations Conference on Trade and Development (UNCTAD) (2019). World investment report. United Nations Publications. Retrieved from https://unctad.org/system/files/official-document/wir2019_en.pdf
Yang, J. Y., & Li, J. (2008). The development of entrepreneurship in China. Asia Pacific Journal Management, 25, 335-359. https://doi.org/10.1007/s10490-007-9078-8
Yang, Z., & Wang, C. (2011). Guanxi as a governance mechanism in business markets: Its characteristics, relevant theories, and future research directions. Industrial Marketing Management, 40(4), 492-495. https://doi.org/10.1016/j.indmarman.2010.12.004
Yang, Z., Huang, Z., Wang, F., & Feng, C. (2018). The double-edged sword of networking: Complementary and substitutive effects of networking capability in China. Industrial Marketing Management, 68, 145-155. https://doi.org/10.1016/j.indmarman.2017.10.010
Yen, D., Barnes, B. R., & Wang, C. L. (2016). The measurement of Guanxi: Introducing the GRX scale. Industrial Marketing Management, 40(1), 97-108. https://doi.org/10.1016/j.indmarman.2010.09.014
Yin, R. K. (2015). Estudo de caso: planejamento e métodos. Bookman.
Yin, R. K. (2017). Estudo de caso: planejamento e métodos. Penso.
Zhan, J., & Pimpa, N. (2010). Embracing Guanxi: the literature review. International Journal of Asian Business and Information Management, 1(1), 23-31. https://doi.org/10.4018/jabim.2010010103
Downloads
Published
How to Cite
Issue
Section
License
Copyright (c) 2023 Soraya de Souza Soares, Flavia Luciane Scherer, Ivanete Schneider Hahn , Natália Pavanelo Pivetta
This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License.
- The author(s) authorize the publication of the article in the journal;
- The author(s) ensure that the contribution is original and unpublished and is not being evaluated in other journal(s);
- The journal is not responsible for the opinions, ideas and concepts expressed in the texts because they are the sole responsibility of the author(s);
- In case an article will be approved for publication, the author will sign the term of Cession of Copyright to the journal, according to the download form.
