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It is recommended that MNC appoint chinese locals as Service Managers to build on the "guanxi" to achieve status and moving towards insider status (Buttery & Wong, 1999:151-152) with the central government officials.
Guanxi implied mutual obligation, assurance and understanding, and governs Chinese attitudes toward long-term social and business relationships (Luo, 1997) that provides a balance to the Chinese bureaucracy by giving individuals a way to get around rules through the establishment of personal relations (Alston, 1989).
Companies need to be conscious of that main difference between Chinese and Western business practices lies in the extreme weight of guanxi in the former, as opposed to the specification and enforcement of contracts in the latter (Tai, 1988)...
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Common topics in this essay:
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