The paper proposed to study the China topic was about the Guanxi and the role of MNE’s. In Chinese societies guanxi can be defined as “a friendship with unlimited exchange of favours”, which means if two people share a guanxi relationship they feel fully committed to each other (M. Orru, 1997). This kind of relationships brings harmony to society, reciprocity and high commitments are the basis of the concept.
The social statute the rules the social and business interactions is known as renqing, which means that an individual emotionally reacts to the many situations he or she has to deal on the daily basis.
The Guanxi was influenced by Confucianism. This ideology emphasizes the value of harmony, urging individuals to adapt to the collective to control their emotions, to avoid conflict and to maintain internal harmony. Social relations should be conducted in such a way that everybody’s face is maintained and face is a key component in the dynamics of guanxi (M. Chen, 1995). The appliance of guanxi can be presented through two perspectives: the horizontal relationship –related to competitiveness- and the vertical relationship –related to human resource management-.
The paper discussed a research made with some Taiwanese MNE’s, these organizations build a strategy to enter to the UK market base on the Guanxi approach, although they have some trouble trying to implement this method, due to the lack of commitment and efficiency of UK employees.
Questions:
The social statute the rules the social and business interactions is known as renqing, which means that an individual emotionally reacts to the many situations he or she has to deal on the daily basis.
The Guanxi was influenced by Confucianism. This ideology emphasizes the value of harmony, urging individuals to adapt to the collective to control their emotions, to avoid conflict and to maintain internal harmony. Social relations should be conducted in such a way that everybody’s face is maintained and face is a key component in the dynamics of guanxi (M. Chen, 1995). The appliance of guanxi can be presented through two perspectives: the horizontal relationship –related to competitiveness- and the vertical relationship –related to human resource management-.
The paper discussed a research made with some Taiwanese MNE’s, these organizations build a strategy to enter to the UK market base on the Guanxi approach, although they have some trouble trying to implement this method, due to the lack of commitment and efficiency of UK employees.
Questions:
Discuss in your blog the relevance of Guanxi and the existence of Chinese business networks as supporting factors to the internationalization process of Chinese companies.
The Guanxi philosophy is very practical to an organization as well as to society, because its values and beliefs are focused to find harmony. The guanxi approach could make a friendly and cooperative work environment, which allows employees to care about the interactions with their colleagues. These actions could avoid emotional conflicts or disrespectful behaviours that could affect the productivity and the efficiency of companies.
Referring to internationalization process of Chinese companies, Chinese business networks are an essential supporting factor, because the networks could give important tips to enter to new markets, reach contacts, and provide practical ideas to develop a useful strategy to consolidate the company in the new environment.
Taking into account that networks requires a broader perspective of interaction between managers, employees and customers. The Guanxi is a functional approach which enables the different organizations to manage their relationships in a better harmonizer manner.
The Guanxi philosophy is very practical to an organization as well as to society, because its values and beliefs are focused to find harmony. The guanxi approach could make a friendly and cooperative work environment, which allows employees to care about the interactions with their colleagues. These actions could avoid emotional conflicts or disrespectful behaviours that could affect the productivity and the efficiency of companies.
Referring to internationalization process of Chinese companies, Chinese business networks are an essential supporting factor, because the networks could give important tips to enter to new markets, reach contacts, and provide practical ideas to develop a useful strategy to consolidate the company in the new environment.
Taking into account that networks requires a broader perspective of interaction between managers, employees and customers. The Guanxi is a functional approach which enables the different organizations to manage their relationships in a better harmonizer manner.
References
Taken from www.thecontractrecruiter.com/.../guanxi-con-rel1.jpg, March 17th 2010
Chen, I Chun Lisa and Easterby-Smith Mark. 2008. “Is Guanxi still working, while Chinese MNCs go global? The case of Taiwanese MNCs in the UK”. Human Systems Management 27: 131-142.
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