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Negotiating with the Chinese: a socio-cultural analysis

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  • Ghauri, Pervez
  • Fang, Tony
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    Abstract

    China has been one of the most favorite markets for Western firms for the last decade. However, doing business with China is considered difficult, mainly because negotiating with Chinese counterparts is quite complex. This paper analyses the negotiation process with China from a socio-cultural perspective. A Swedish multinational, Ericsson, is followed for several years and its negotiation process for different Chinese projects in the telecommunication industry is studied in depth. Based on these cases and literature a model is developed and some conclusions are drawn. Finally, managerial implications presented as four Ps: Priority, Patience, Price and People sum up the essence of Chinese business negotiation process.

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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of World Business.

    Volume (Year): 36 (2001)
    Issue (Month): 3 (October)
    Pages: 303-325

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    Handle: RePEc:eee:worbus:v:36:y:2001:i:3:p:303-325

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    References

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    1. Hoon-Halbauer, Sing Keow, 1999. "Managing relationships within sino-foreign joint ventures," Journal of World Business, Elsevier, vol. 34(4), pages 344-371, January.
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    Cited by:
    1. Li, Shenxue & Scullion, Hugh, 2010. "Developing the local competence of expatriate managers for emerging markets: A knowledge-based approach," Journal of World Business, Elsevier, vol. 45(2), pages 190-196, April.
    2. Ramasamy, Bala & Goh, K.W. & Yeung, Matthew C.H., 2006. "Is Guanxi (relationship) a bridge to knowledge transfer?," Journal of Business Research, Elsevier, vol. 59(1), pages 130-139, January.
    3. Al-Khatib, Jamal A. & Malshe, Avinash & AbdulKader, Mazen, 2008. "Perception of unethical negotiation tactics: A comparative study of US and Saudi managers," International Business Review, Elsevier, vol. 17(1), pages 78-102, February.
    4. Jing Yang & Frank Tipton & Jiatao Li, 2011. "A review of foreign business management in China," Asia Pacific Journal of Management, Springer, vol. 28(3), pages 627-659, September.
    5. Fang, Tony & Worm, Verner & Tung, Rosalie L., 2008. "Changing success and failure factors in business negotiations with the PRC," International Business Review, Elsevier, vol. 17(2), pages 159-169, April.
    6. Fong, John & Burton, Suzan, 2008. "A cross-cultural comparison of electronic word-of-mouth and country-of-origin effects," Journal of Business Research, Elsevier, vol. 61(3), pages 233-242, March.
    7. Yunxia Zhu, 2009. "Confucian Ethics Exhibited in the Discourse of Chinese Business and Marketing Communication," Journal of Business Ethics, Springer, vol. 88(3), pages 517-528, October.
    8. Khakhar, Priyan & Rammal, Hussain Gulzar, 2013. "Culture and business networks: International business negotiations with Arab managers," International Business Review, Elsevier, vol. 22(3), pages 578-590.

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