The following article is from my Doctoral research. Enjoy and comment as you desire.
China is a developing country and has been for thousands of years. Small businesses have always been the life blood of the country.
After a review of literature, discussions with Chinese Nationals, and personal dealings with small businesses in China, numerous questions concerning their business practices abound.
The events of the 20th century in China have lead to major changes in the psyche of the people. Consider that the country was lead by emperors of the Qing dynasty from 1644 to 1911. From 1911 to 1949, the dictatorship of the Nationalist Government prevailed until they were driven off of the mainland to Taiwan. Mao and subsequent leaders of the Communist Party have been in power since. Even that leadership has changed immensely. Initially under Chairman Mao, the economic system was communistic and the central government controlled everything from where individuals lived to where they worked. As the country slipped towards capitalism, Chairman Mao initiated the Cultural Revolution to bring the country back to a communist state. After his passing, Deng Xiaoping instituted a move toward a capitalistic social democracy. That form of government continues today under the Communist Party, which is communistic in name only. These constant changes in government have lead to a new society and culture.
Cultural influences have always affected the way business is conducted in China and the culture is again changing. “Guanxi’ is a term used to describe the common practice of using connections or relationships to get whatever one wants done. It is a very old custom and an important aspect of the way business is conducted in China and in the United States, but to a lesser extent. Guanxi breeds corruption, which is and has been a major problem for China from its’ earliest days. Are Confucianism and Buddhism still dominating influences on the people and their values? Probably not. Is money? Probably. Entrepreneurship is thriving.
These government and cultural changes affect the way business is conducted in China. In light of these changes, has the management of Chinese companies changed? Has thought been given to McGregor’s Theory X or Y leadership styles? Does ownership consider training of employees to be an important function of management or do they only hire skilled or unskilled employees as appropriate? Has management considered motivational theory or do they care? How is product promotion conducted for foreign and domestic markets? The World Wide Web is used, what about other management information systems? This is a small sample of the types of questions that deserve attention.
In order to conduct research into these kinds of questions, contact with several Chinese Nationals living both in China and the United States has been initiated. A Chinese company which conducts both domestic and foreign business has been contacted and an agreement has been reached to consult with and for them in Beijing, China. Additional companies are being solicited for consultation. Literature has been reviewed in preparation for the interviews and for the consultation in China. A brief list of books that have been reviewed for understanding the cultural changes in China is referenced at the end of this paper.
The Practitioner-Researcher by Peter Jarvis has provided guidance into the conduct of research that must be conducted to provide a quality analysis of the management of a relatively small Chinese company and the additional insights into general notions of Chinese management that can be provided by Chinese Nationals. Recommendations concerning the uses of case studies and their limitations are of special significance. Internal validity dictates a rigorous thought process that must be used to conduct the research. Recording as much information that must be analyzed later to make reasoned interpretations of the data that is gathered, suggests that attention to detail is extremely important. Every effort must be made to understand the personal influences between the interviewer and the interviewed.
Collaborative research is being considered. There is a college student presently living in Beijing, China that I am communicating with via email. He is conducting research into Chinese decision-making for his thesis at Wesleyan University. We are in the initial stages of discussion concerning information that we may share. The pitfalls of collaborative research discussed in The Practitioner-Researcher apply.
The benefits and limitations of Small-Scale Surveys are important. The research proposed here falls within the guidelines of a small-scale survey. The description of potentially valid research projects identified by the author would indicate that consultation with additional companies would be extremely beneficial and is being pursued.
Generalizing from this small sample would be very tenuous. The author points out to generalize about the conduct of business in China based on these consultations and interviews are not possible. Accordingly, additional research will be required to further the understanding of Chinese business.
Understanding the Chinese culture and its’ impact on the ways business is conducted in and outside of China has potential benefit to those wanting to do business with Chinese companies. Along with additional research, it is the purpose of this investigation to provide insights into the ways of doing business in China.
Great Wall 