There are key precepts shared by Chinese Confucianism namely, the central value of community, the desirability of ethical partiality, and the idea that people tend to become morally better as they grow older. As highlighted by Bell and Metz (2011).
Indeed, one key aspect of Chinese business culture is the concept of “face”.“ As identified by Story (2010). ‘Face’ is a mix of public perception, social role and self- esteem that has the potential to either destroy or help build business relationships in China.
Business leaders will be confronted by the cultural problem of ‘face’ in the Chinese business context. To address this cultural problem, business leaders must give ‘face’ by attending meetings, accepting invitations, providing suitable expensive gifts and showing sensitivity to Chinese culture.
It is also possible for ‘foreign’ business leaders in China to lose ‘face’ by insulting someone in public, refusing invitations and gifts or by behaving inappropriately, like losing their temper or crying — acts that are seen as a lack of self-control and weakness in the Chinese business environment.
Organizations striving for success in today’s globalized business world face an increasingly complex set of challenges. These challenges relate both to their external environment and to internal considerations such as:
- Increasingly multicultural organization composition
- Increasingly blurred boundaries between geographies and markets.
- Increasing removal of barriers to international trade
- Increasingly rapid global impact of unforeseen events
- Globalization of supply chains
In general, top leaders, irrespective of their global location, are more emotionally stable, and much more competitive, ambitious, outgoing, and well-informed than the average person but there are distinct cultural differences. As observed by Jokinen (2005)
Chinese business people generally respect cultural differences and won’t expect foreign business leaders to be fully customized to their tradition. The Chinese are very culturally pragmatic.
Business success in China takes time and it requires patience, therefore Foreign companies that are looking to expand into China need to show a long-term approach that will prove that they’re in the country to stay.
Furthermore, businesses planning to do business in China must develop a business strategy focus that includes, global business acumen, business communication and intercultural competence, language competence and cultural awareness within the Chinese business context.
To effectively manage the Chinese business environment, business leaders can impress with their knowledge of local customs, acknowledging hierarchy, offering gifts, addressing people by their designation especially when dealing with state representatives, and appreciating the food. Such awareness of cultural nuances shows respect and sincere interest. As highlighted by Perkowski (2008)
This requires a unique set of global leadership competencies; which is driven by curiosity, openness, and a desire to learn; and develop and learn intuitively about other cultures. As observed by Terrell and Rosenbusch (2013).
The world awaits the era of the Chinese, shouldn’t you be ready?
