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             09 June, 2023

Category:  Articles » Business » Outsourcing


Doing Chinese Business Based On Hofstede

         Views: 2580
2007-11-01 07:34:25     
Article by Eric Yee

Before doing any type of business in China one must get familiar with the Chinese business culture. According to Hofstede's analysis, China ranks very high in long term orientation, very low in individualism, high in power distance, and average in masculinity and uncertainty avoidance. In my opinion I still believe these behaviors or cultural dimensions are very accurate.

The culture here believes in overcoming obstacles over time which is part of Hofstede's long term orientation dimension. This factor shows the Chinese society's view towards time and their attitude towards perseverance. This analysis provides a great deal of importance when making business deals. In China slow and steady wins the race for business deals. Building strong, reliable, lasting relationships is key for the Chinese. A certain amount of trust must be gained before any decision is met. It may take three to four times the length of time to finish the business deal compared to your cultural standards. So if you do not come to a fast agreement, don't be discouraged, make the client feel comfortable and show your patience. The Chinese never like to rush into things.

Low individualism is also important for learning the Chinese way of thinking. This trait shows their close loyalty to stay close with groups such as family, work, team, etc. This links back to their high long term orientation above. They also have a collectivist attitude referring back to the Communist rule compared with individualism. Chinese business habits tend to stay with the same partners or suppliers to keep loyalty and not deteriorate relationships. So when doing business with others it is a good idea to select a good strong partnership that has potential to last a long time. It is looked down upon if you frequently change business partners.

The power distance remains high in China, whether it is within the company or in society. When doing business in China one must be aware of this large hierarchy gap. It is often hard to move up on their corporate ladder compared to other cultures.

The last two dimensions are masculinity and uncertainty avoidance. Both are average so most likely these factors are similar to your customs and you need not worry about them.

Knowing about these dimensions can tell you a lot about the country of China, society of China, and especially how to do business with China. This isn't everything. This is just a quick business analysis using Hofstede's dimensions. Hope it helps.

Eric Yee is an Online Marketing Consultant for Beijing Jabgo Network Consulting Co. The main goal of this business platform is to provide useful tools and high-quality services to connect international companies with local Chinese companies in an online environment. This portal is aimed at assisting international companies that want to enter the Chinese market. We function as a gateway between the two, stimulating bilateral interaction. If you are interested in a job or internship in China, visit http://www.jabgo.com/.

Specialized in: China
URL: http://www.jabgo.com
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