What does culture have to do with business? Many business majors and practitioners immersed in questions of financial forecasting, market studies, and management models have turned aside from the question of culture and how it affects business.
With the increasing importance of the China market in the world economy, many businessmen rushed to enter China to explore business opportunities. Here is how arise some issues on “how to understand China” and “how to settle business” with Chinese people.
To clarify the differences between China and Africa, I will focus on Hofstede’s four cultural dimensions: power distance, individualism/collectivism, masculinity/femininity, and uncertainty avoidance and Bond’s dimension about long-term/short-term orientation also called “Confucian Dynamism”. Some differences can be found according to Hofstede studies on culture differences. In low power distance or power tolerance cultures, individuals assess authority in view of its perceived rightness. In individualistic cultures, the interest of the individual takes precedence over the group’s interest. Third, Africa has higher value than China in masculinity, which indicates that Africa is medium masculinity while China is medium femininity. Cultures differ on what motivates people to achieve different goals. Cultures of the aggressive goal behavior type (masculinity) value material possessions, money, and assertiveness whereas cultures of the passive goal behavior type (femininity) value social relevance, quality of life and welfare of others. Fourth, China and Africa have higher values for uncertainty avoidance the West. This shows that in both sides, people are relatively risk-avoiding while western people are relatively risk-taking. Cultures are characterized as either high or low on uncertainty avoidance. Whereas low uncertainty avoidance cultures prefer positive response to change and new opportunities, high uncertainty avoidance cultures prefer structure and consistent routine. Last, Africa has a short-term orientation while China has a long-term orientation. The significant differences between Africa and China seem to affect some aspects of their business management practice.
Cultural Differences in business Strategies
As discussed above, Africa and China have a strong collectivism.
Cultural Differences in Conflict Management
African managers are reluctant to devote their time and efforts together in solving business conflicts. Other people’s help is needed.
Cultural Differences in Decision-making Risk-taking/Risk-avoiding
Chinese and African managers differ from in the attitudes toward risks when they make decisions for their different values in uncertainty avoidance. Chinese managers or African managers have different level of participation in decision- making. In China, decisions are participatory. In Africa, managers make individual decisions.
Cultural Differences in Work-group Characteristics
In African business style which is quasi the western business style, managers focus on the deal, the possibilities, the risks and so on. In China, it is the opposite. Chinese managers may initially focus more effort on building social and interpersonal relations (guanxi) before entering into business or contractual relationship. Chinese managers are not interested in short term; they want long, life-long business relations.
Cultural Differences in Motivation Systems
; In business contexts, the motivations of employees, partners, superiors, contractees, social associates, and members of a society spring from cultural values, or what people think is important. In general, the equity principle is common in individualistic cultures while the equality principle is widely used in collectivistic cultures. Cooperation, interdependence, group goals that create group harmony are applied in China. As sometimes companies move to do business in other countries, a greater sensitivity to culture will be required and an understanding of cultural realities should facilitate business transactions.
Knowing another culture is a legitimate concern of businesses.
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China, as of 2007, has around 3,000 to 6,000 domestic pharmaceutical manufacturers and around 14,000 domestic pharmaceutical distributors.
China, as of 2007, has around 3,000 to 6,000 domestic pharmaceutical manufacturers and around 14,000 domestic pharmaceutical distributors.