What are the biggest cultural factor-related challenges for Finnish SMEs while doing business with the Chinese? : case: real voice from three businessmen
Wang, Hongjuan (2014)
Wang, Hongjuan
Lahden ammattikorkeakoulu
2014
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2014112617027
https://urn.fi/URN:NBN:fi:amk-2014112617027
Tiivistelmä
The rapid and constant growth of China´s economy and its huge population leads to an enormously diverse and alluring market, which brings countries around the world great opportunities to conduct their business in China. Many firms, however, fail to succeed in the market, as establishing a foothold in the Chinese market is not easy.
Thus, the thesis aims to find out the biggest cross-cultural challenges for Finnish SMEs to arouse their awareness of how to do business successfully with the Chinese; Finnish SMEs are targeted to who are currently planning to enter China´s market and who are at the beginning of establishing business with the Chinese. For this purpose, an extensive description of both Chinese and Finnish culture and a comparative analysis of cultural differences based on literature studies and insights of three interviewees will be conducted.
This thesis is performed by applying qualitative research methods and having a deductive orientation; it can be seen as consisting of two parts: theoretical- and empirical part. In the theoretical part, various sources are collected from viewing literature, namely, published texts, journals, newspapers, magazines; in the empirical part, data are obtained from the insights and reflects of the three interviewees.
The results of the research indicate that understanding Chinese communication style guides Finns to effectively get their point through and accept that all business is personal in China. Trusting and profitable “guanxi” with the Chinese potential business partners can be built and maintained by spending time networking and socializing with them. Being flexible and focusing on win-win business enable Finns to work out their ways in agreement negotiation.
Thus, the thesis aims to find out the biggest cross-cultural challenges for Finnish SMEs to arouse their awareness of how to do business successfully with the Chinese; Finnish SMEs are targeted to who are currently planning to enter China´s market and who are at the beginning of establishing business with the Chinese. For this purpose, an extensive description of both Chinese and Finnish culture and a comparative analysis of cultural differences based on literature studies and insights of three interviewees will be conducted.
This thesis is performed by applying qualitative research methods and having a deductive orientation; it can be seen as consisting of two parts: theoretical- and empirical part. In the theoretical part, various sources are collected from viewing literature, namely, published texts, journals, newspapers, magazines; in the empirical part, data are obtained from the insights and reflects of the three interviewees.
The results of the research indicate that understanding Chinese communication style guides Finns to effectively get their point through and accept that all business is personal in China. Trusting and profitable “guanxi” with the Chinese potential business partners can be built and maintained by spending time networking and socializing with them. Being flexible and focusing on win-win business enable Finns to work out their ways in agreement negotiation.