THE IMPORTANCE OF GUANXI FOR FOREIGN INVESTMENT IN DOING BUSINESS IN CHINA
By: Reni Rosari
Fakultas Ekonomika dan Bisnis Universitas Gadjah Mada Yogyakarta
Guanxi is one of the major dynamics in the Chinese society where business behaviour revolves around guanxi. It is widely recognised that guanxi is a key success factors in getting anything important accomplished in China. Guanxi is a key business determinant of firm performance because the life blood of the macro economy and the micro business conduct in the society is guanxi network. Any business in this society, both local firms and foreign investors and marketers, inevitably face guanxy dynamics. No company can go far unless it has extensive guanxi in its setting. This article describes the unique and unfamiliar ways of doing business in China, what guanxi is, what the impact of guanxi on business success are, why guanxi is important factor for foreign investor in doing business in China, what foreign investment need to do to operate successfully in doing business in China.
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