International  Management  Report  

M.S.c  International  Management  

Conor  Fitzgibbon  

   

Word Count: 7956 Student Number: 11516003

   

       

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Name: Conor Fitzgibbon Student ID: 11516003 Subject: International Management Module: International Management Report Word count and page length Of Essay: 7956 Pages 43 Bibliography Included I hereby confirm that this Essay is my own unassisted work, has never been submitted for publication or assessment elsewhere and that all sources used in its composition have been clearly cited. Signed By Student: Date:28/07/2015

       

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

       

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Table  of  Contents      

Executive Summary  ............................................................................................................  1  

1.  Introduction  ...................................................................................................................  3  1.1 Rationale  ..................................................................................................................................  3  

2.  Indicative  Literature  Review  ....................................................................................  5  2.1 International Assignment Planning  ...................................................................................  5  2.2 Cross Cultural Awareness  ...................................................................................................  7  

3.  Methodology  .................................................................................................................  10  

4.  Findings  .........................................................................................................................  11  4.1 Chinese Dream  .....................................................................................................................  11  4.2 Cross Cultural Training  .....................................................................................................  12  4.3 Guanxi  ....................................................................................................................................  14  

5.  Discussion  .....................................................................................................................  18  5.1 Changing political enviornment  .......................................................................................  18  5.2 Can cultural adaptions be flexible?  .................................................................................  19  5.3 Is Guanxi everywhere?  .......................................................................................................  21  5.4 Don’t cross the line  ..............................................................................................................  22  

6.  Recommendations  .....................................................................................................  24  

7.  Conclusion  .....................................................................................................................  26  8.  Bibliography  .................................................................................................................  27  

9.  APPENDICES  .................................................................................................................  31  APPENDIX  A  ...............................................................................................................................  31  APPENDIX  B  ...............................................................................................................................  32  APPENDIX  C  ................................................................................................................................  33  

 

Table  of  Figures    Figure  1    Reports  of  Corruption  by  Region………………………………………………16  Figure  2    Guanxi system (China Australia Consult)…………………………….21  

 

 

 

       

       

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Executive Summary

With the impact of Information Technology (IT) on modern society, the world has

molded into what has become known as a global village where economies and

cultures have become more homogenized.

People are now aware of once distinctive cultures, traditions, lifestyles and living

conditions prevailing in almost every corner of the world. Interestingly, this is going

beyond awareness and into a state of integration that is a result of cross-pollinated

views, ideologies, products and services. Such an evolution of behavioral norms and

traits is due to the process of globalization. According to (Ghemawat 2008)

globalization makes things more alike but cultural differences still present many

issues and challenges to be considered.

Leading the world of globalization is China and East Asia with China predicted to

over take the United States of America (US) as the world’s global superpower

economy in the coming years. Such power represents a plethora of opportunity for

western companies to exploit by partnering, competing or moving their business to

China.

The purpose of this report is to examine the cross-cultural effectiveness of Cross

Cultural Training (CCT) for short term assignees working within differing cultural

contexts such as China with a focus on Hong Kong. Hong Kong is the gateway for

companies when attempting enter into the Chinese market and western assignees can

understand Chinese culture by looking at Hong Kong, as Hong Kong is a mix

between modern and traditional Chinese cultures which complicates the process for

understanding but also makes it more interesting. Thus the reason for research to take

place in Hong Kong. The report seeks to identify areas for improvement of CCT

training in order to help overcome cultural obstacles, which may be experienced by

western business assignees working in any cultural context with a focus for this paper

on Hong Kong,

The data obtained for this report was gained through a simulated short-term business

assignment to Hong Kong between the 28thof May - 7th of June 2015. Such data was

collected through attendance at talks, lectures, seminars and informal discussions with

       

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business leaders and expatriates operating in China, Hong Kong and throughout. A

One key limitation noted by the researcher is one cannot portray the Hong Kong

culture as the same to that of the Chinese business culture as they are influenced by

differing factors. However, a compelling finding from this report is that despite the

homogenous rise of globalization, no culture is the same and thus one must educate

themselves specifically to the context or country in order to adjust. Therefore, the

findings in this report provide the latest views and perspectives of Chinese cultural

issues when doing business in Hong Kong.

The literature review then focuses on CCT, which includes the differing views of the

validity and effectiveness of such. Chinese cultural understanding in the context of

Hong Kong is also examined in the form of ‘Guanxi’ and its effectiveness and

cogency as a cultural aspect of business. This has been in play for hundreds of years.

The report then contributes the latest findings which are discussed in detail followed

by recommendations, which if followed can help the expatriate adapt more effectively

to a culturally challenging environment such as Hong Kong.

Doing business in China is now seen as a ‘must’ for any company looking to gain a

foothold in their respective market. The challenges and issues such as political, social

and cultural, are all examined in the report. The following is the main research

question for this study:

How important is cross-cultural training (CCT) for short-term assignees in

understanding the cross-cultural differences of doing business in Hong Kong?

                             

       

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1.  Introduction  1.1 Rationale

Much of the literature on Cross-cultural training (CCT) suggests that even the most

frequent business travellers need time to adapt to the cultural characteristics of the

new environments in which they find themselves. However, it is not clear whether

cross-cultural training (CCT) actually allows for familiarity with cultural diversity

despite the extensive research that has been carried out in this area. (Black and

Mendenhall 1990). (Scullion and Collings 2006) in contrast argue that CCT could in

fact limit the possibility of any culture shock that the expatriate may face, minimize

transition adjustments as well as warding off pre-mature entry and project failure.

Other authors have illustrated that CCT will aid employees performance as they thrive

to be effective whilst making the best ‘first impression’ on the ground in the new

foreign environment (Parkinson and Morley 2007) (Collings and Scullion 2006).

Ultimately, in order to gain maximum effectiveness, such CCT should take place

when the trainees are most excited and motivated about the trip itself (Grove and

Torbiorn 1985). There does however, seem to be a lack of research into the effect of

CCT on short-term assignments. Drawing inspiration from this, the research

investigates the importance of CCT for western business managers on short-term

international assignments (IAs) in understanding the cultural complexities of doing

business in Hong Kong. The next section introduces the specific research objectives

of this research.

-How important is the notion of Guanxi for understanding Chinese business

relations in Hong Kong? These issues will be looked at in the context of Hong

Kong and will ultimately seek to investigate the cultural differences of doing

business in China for a short-term assignee from Ireland. Hong Kong is a

cultural melting pot that bridges Western and Chinese cultural values and

hence presents a valuable research setting wherein which to investigate the

importance of CCT training for international assignees Boakari (2004).

-The evolving political transition in Hong Kong and China and its implications

for doing business in China

       

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The structure of this report is as follows. The research will firstly consider in depth

the current literature relating to CCT with respect to short-term assignments and the

role it plays in overcoming cultural differences through Cross Cultural training. This

section will also outline the relevance of Guanxi and how it can help short-term

assignees adapt to doing business successfully in Hong Kong.

The next section will also consider the findings of the report and the discussions of

these findings will be analyzed before concluding with recommendations for future

short term IAs.

                                                                   

       

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2.  Indicative  Literature  Review  2.1 International Assignment Planning

With the ever-changing dynamic global marketplace change is happening frequently

in both the planning of but also the type of international assignments. Long term IA’s,

also known as ‘expatriate assignments’, are the traditional choice when it comes to

international assignments:

Another changing form of traditional International Assignments that has received

growing attention by academics is short-term assignments. Such an assignment helps

cut costs and save finanacially unlike expatriate assignmenets. The literature

commonly refers to short-term assignments as postings between 1 to 12 months in

length (Collings, Scullion et al. 2007).There is a lack of literature on such

assignments and is something that will be investiagted throughout this report, whether

or not CCT is required for Short-Term Assignments and what if any value does it

bring to the indiviual and company. The various forms of business assigness can be

seen in Table 1 in Appendices

Cross-cultural training (CCT) has been one the most investigated topics in

expatriation research (Caligiuri, Phillips et al. 2001). This interest had been down to

many factors, notably managerial implications of such research, the interest in such

training by MNC’s, cross-cultural consulting and universities respectively. Such

research is therefore of direct interest to MNC’s in particular. CCT is a particular

form of Pre departure training that companies use to help managers on international

assignments to deal with issues such as culture shock (Hurn 1999). CCT should

enable participants to determine appropriate cultural behaviors in the host country and

suitable ways to perform their job tasks (Black and Mendenhall 1990). Through CCT,

expatriates may be better equipped to cope with unforeseen events in the new cultural

context and to avoid any unnecessary conflicts due to unexpected actions or

occurrences (Earley 1987). Missing such training can lead to business people

replicating their cultural habits and traits of their host country without appreciating

and acknowledging the cultural traits and norms of the host country.

(Black and Mendenhall 1991) describe CCT initiatives as ‘factual’ training methods,

and they have been negatively associated with numerous views. First, cognitive

       

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approaches lack rigor and often do not allow participants to engage actively in the

learning process. Consequently, leading to an increase in factual (explicit) knowledge

as opposed to a practical applicable knowledge attribution processes (tacit

knowledge). Second, (Tung 1981) states that these programs are insufficient to

prepare trainees for international assignments due to the innumerable cultural

differences that exist, many of which are too sensitive and intricate to teach through

cognitive training methods.

Hence, the effectiveness of such CCT programs has to be questioned. They limit the

transfer of explicit knowledge; they are not designed to transfer tacit cultural

knowledge which as mentioned, is a core element of culture. Adding to this, as

(Mendenhall et al. 2004) report, CCT programs are usually, but not always, effective

in improving trainees’ cognition. They have a mixed record in changing trainees’

effectivness, but are only occasionally effective in changing trainees’ behavior, thus

leading to doubt to the effectiveness of such programmes.

Utilization of technology in corporate communications, cross-cultural training

program design, delivery, and follow-up will continue to expand with globalization.

Likewise, will the demand for technologies that can be in-corporated into cross-

cultural training. These future implications of CCT will put financial strain on

organizations especially in times of economic uncertainty where cutting CCT

programmes could be seen as a ‘cost saver’.

A key finding of (Selmer 2010) study considered CCT in the context of China and

found that those expatriates with an expert knowledge of China, referred to as ‘China

Hands’, showed a clear majority of expatriates were allowed to enter China without

any CCT at all and is consistent with other results (Brewster 1995); Hutchings

(2005); (Selmer 2000). Interestingly, with respect to China, whose culture has been

described as ‘baffling’ (Chen 2001), this could lead to problems down the line not

only for such training but also the business environment itself. Hence such evidence

suggests a need for CCT in a culturally complex environment such as China.

(Black & Mendenhall 1990) are furthermore of the view that CCT can have positive

impact on one’s skill development, cross cultural adjustment mechanisms and one’s

       

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job performance while in a new environment. In 1987, Tung discovered that the more

training provided to expatriates, the lesser the probability of failure.

(Molinsky 2013) argues that in order for there to be complete appreciation of a new

culture and to be effective in foreign cultural interactions, one must have global

‘dexterity’ which is the ability to adapt or shift behavior in light of any cultural

differences. In the case of China, he gives the example of making the culture ‘your

own’. He says one has ‘leeway to adjust’ to a culture. Adding to this, he also

recommends a Chinese mentor to be used and stresses that it’s not all of China one

needs to know but the particular region in which they will be working. He mentions

the importance of a knowledge of CCT but more importantly, the ability to take what

you know and put it into action on the ground. He emphasizes the need for managers

to be able to adapt and think quickly on their feet in differing cultural contexts and

situations.

From these arguments, it is apparent that CCT is a particularly important mechanism

for helping global managers understand Chinese cultural values for example the

Chinese culture of ‘Guanxi’ in order to maximize full working performance and

potential with the added benefit also that CCT could also reduce the anxiety arising

from the unknown (Bennett, Aston and Colquhoun 2000). Despite vast arrays of

academic literature on CCT for expatriation, there lacks specific research on the

effectiveness of CCT for short term IA’s, which needs to be examined further and is a

key contribution of this paper.

2.2 Cross Cultural Awareness

Guanxi is a phenomenon found in Chinese business ethics, which is fundamentally

defined as interpersonal connections and has been identified as one of the factors of

business success in china (Abramson and Ai 1999). Guanxi is considered as long-term

relationship between business partners that contributes to efficiency in the

organization and competitive advantage (Lovett et al 1999). It has been found that

firms with higher Guanxi prosper more readily on many diverse fronts as they have a

sustained competitive advantage (Tsang 1998) and they have better chances of long-

term survival and growth (Pearce and Robinson 2001). This again points to the need

for aspiring international firms to offer CCT in order to build sustainable business

relationships and to attain the ability to culturally adapt. This being said, Chinese

       

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values in particular are said to be westernizing. Thus, ambiguity surrounds the

establishment of such relationships as with development of business practices when

initiating business relationships. (Wellman, Chen, & Dong 2002) are of the view that

Guanxi based business practices can in fact reduce uncertainty, lower search and other

transaction costs and provide usable resources. Such statements reiterate that foreign

expatriates should make it their main priority to build Guanxi to give them a

competitive edge in their networking and trust building in the Chinese business arena.

This is supported by (Tung and Worm 2001) who state that Guanxi is the most

influential cultural dynamic that impacts business life in the dynamic Chinese

marketplace. Such statements support the drive for appropriate and effective CCT.

Trust is also key element of business practices in Chinese culture. In cross-cultural

business relationships, trust plays an indispensable role since partners from different

cultures don’t always have the same values, perceptions or assumptions about how

business works. Trust is seen to be one of the leading managerial issues of the

corporate agenda. (Ellis 1996) suggested that building trust between partners in

strategic alliances is a key ingredient to building a sustainable long-term relationships.

(Buckley 2006) found however that confusion surrounds the main concepts of

Guanxi, its implications and the benefit it actually brings with it. Moreover, (Fan

2002) & (Chua 2012) highlight the ‘myths’ of Guanxi and believe the concept is

beginning to become more parallel with more the typical networking practices with

which western executives are already familiar. They highlighted a misconception of

the term in that the resources available are too broad and rarely stray beyond

superficial notions. Also the myth of gift giving is now frowned upon as China’s

tradition of gift giving is changing to a focus on the professionalism of doing

business, rather moving away from the social side, the latter which has represented

corruption and other wrongdoings such as nepotism, bribery and fraud (Yang, 1994).

During the economic reform and opening of China’s marketplace, corruption has

become so rampant that it has been called the ‘plague’ or ‘cancer’of society (Yang

1994). Such corruption is now being targeted for complete elimination by the Chinese

government, which has long played a regulatory role in the economy according to

(Buckley 2005).

       

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”State paternalism remains a dominant feature of China’s business environment”

(Child & Tse, (2001) p. 17). The Chinese political system is in a time of change from

a paternalistic state to a more relaxed system of welcoming world MNC’s to their

shores. Commentators such as (Eakeley 1997, p. A23) claim that”China is showing

an interest in the rule of law” by reinventing their legal system, leaning towards a

more ‘American’ style of doing business and implementing policies of anti-

corruption. Hence the term , ‘the Chinese Dream’ (Guthrie 1998) which is a play on

the ‘American Dream’.

Although recent empirical studies state that time consumption and expenses in

developing and maintaining Guanxi are perceived as a major disadvantage (Fock &

Woo, 1998; Yi & Ellis, 2000), such literature nevertheless asserts that to be succesful

in certain types of business realtions supports the needs for Guanxi awareness, but

moreover points to the need for CCT to be given to International Assignees on short-

term assignments, on what to expect and how to deal with such a diverse cultural

context.

The previous arguments have illustrated the importance of CCT for short-term

assignees especially in the context of understanding Chinese values in HK. More

specifically, the changing of Guanxi as a resource in HK is without doubt a significant

concern for western businesses doing business in China.

The next section of this report will consider the main methodological approaches used

when undertaking this research.

                           

       

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3.  Methodology  

Empirical data was conducted by simulating a short-term IA to Hong Kong. This

assignment lasted 10 days and replicated the process involved with that of a short-

term IA. It has been argued that short-term IA’s are the most popular form of non-

standard assignment (Tahvanainen et al., 2005). Price Waterhouse Coopers (2005)

reported that over 50 per cent of companies surveyed expect the use of short-term

assignments to increase in the future which shows the growing popularity of such an

engagement. Also such a time frame allowed for qualitative Ethnography which

involves the description and study of human cultures, (Saunders 2002).

Qualitative research was deployed as the main research strategy and the main research

tool came in the form of observational techniques. Presentations from specialists in

the field including academics, local Irish consulate members, Irish managers in HK

and business professionals who have experience working on international

assignments, with most presentations lasting between 1 and 2 hours maximum. A

number of small scale surveys with IA’s from Ireland were also carried out to offer

practical perspectives for the findings. Table 2 in appendices details the various

contributors to the data. Data was recorded using daily journal keeping in order to

document all relevant research material gained, in as efficient a manner as possible.

Clear and defined note taking was the main tool used in gathering data in all forms of

meetings and discussions during the trip. Each evening these notes were typed into

files concentrating on research related objectives, which may have arisen during the

day. These files were then filed for personal note keeping and reflection. They

included all facets of activities, which were crucial for the final report in attaining

new knowledge and viewpoints on which the report was based.

A limitation of the research assignment noted was that more time would be beneficial,

for example time to cross the border into mainland China to gain a further

understanding into the cultural differences and similarities there and help provide a

more rounded view.

       

       

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4.  Findings  

The international field trip to Hong Kong has enabled this report to include in its

findings the major issues facing western business assignees doing business in China.

The following section will detail a summary of the findings from the data that was

collected while on Assignment. It will begin by discussing the importance of the

‘Chinese dream’ before detailing findings on CCT, Guanxi and corruption. Ho

(2015) believes that any company wishing to enter the Chinese market must

understand and accept the challenges associated with doing business in China. A clear

grasp of the major hurdles will allow foreign business people adapt to doing business

more successfully in China.

4.1 Chinese Dream

Crisis  or  opportunity  for  foreign  companies?    

A fresh topic of debate and key finding from the international field trip is the new

phenomenon branded “China dream”. The ‘Chinese Dream’ as the Chinese

government has given birth to is its strategies for future growth and is raising a lot of

uncertainty including potential hurdles and perhaps opportunities for MNC’s trying to

enter into China. The policy initiatives announced by General Secretary Xi Jinping

were amongst some of the more radical since Deng Xiaoping opened China to the

global market in 1978 which Ho (2015) says was a ‘good step’ for China and done to

‘save china’. The “Dream” is an amalgam drawn from relationships between the

Western and Chinese perspectives and is a play on the ‘American dream’ but

importantly shows the influence the west has on all facets of both business and

political life in China. Ho (2015) stressed that china is in a time of change as the new

leadership regime are strong advocates of ‘ anti corruption’ with a clear 5-year

strategic plan presently in place. These particular actions taken by China are creating

uncertainty among western investors and foreign business personnel which can be

simply linked with one main theme, “law enforcement’. Such a finding on corruption

is the work being done by the ICAC (Independent Commission Against Corruption).

On the topic of corruption, the ICAC use a three-pronged approach enveloping ‘law

making, preventing and education’.

       

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The history of dishonesty and bribery, which lead to accidents at Foxconn, is now

being widely challenged by society as a whole. However, (Eisenman 2015) of the

American Foreign Policy Council decried it by saying: “China has been making it

harder for foreign firms to operate’. Thus, the aforementioned uncertainty is real for

many western business people.

However, such a plan can bring with it opportunity, for example Ho (2015) stated its

new ‘focused’ policies such as , ‘education, power generation, medical industries and

finance’ are all areas that the chinese need to ‘learn’ from the west in order to

implement and ‘maximise potential’ and bring with them ‘a lot of opprtunities for the

west to do business with china’. Linked with this is the question of where does Hong

Kong fall into this 5 year plan, a recent lack of attention for HK has lead to

uncertainty for many HK people as to what value they are regarded to be by the

Chinese. Ho (2015) claimed ‘china is one country, but is not one market’ and thus

those looking to do buisness in China or Hong Kong and be part of this new ‘chinese

dream’ must do their homework on all factors both political and business pre arrival.

4.2 Cross Cultural Training

The next crucial finding is whether or not CCT has a benefit to short term assignees.

A lot of differing and valid perspectives on the topic were observed throughout the

trip and also pre-departure, where the observer conducted qualitative research through

indiviual survey type questionnaires to various Irish business people who have

experience in working or living in China/ Hong Kong.

Donnelly (2015) an investor banker in Hong Kong was noted as saying he did not

receive any CCT and stated: “I could be working in any major financial hub as it is

that international”. This supports the view of the very westernised economy in Hong

Kong at present. McDermott (2015) a quality inspector with a global MNC who does

business in China regulary said that in relation to CCT he received ‘basic training’ on

things such as how to ‘present a business card’ and how to ‘conduct oneself’ which he

says was very beneficial. Crucially he says: ”as was being aware how one could

“easily offend without knowing” whilst on business.

He also recommended a simple ‘checklist’ that would be helpful for short-term

assignees. Croughan (2015) an Irish business woman who has studied and worked in

       

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Hong Kong supports this further in suggesting that “understanding the core cultural

values through CCT helps to delfect any problems that could occur”.

Ho (2015) who gives his view on CCT and advice on short term assignments, saying

it is crucial first to ‘send those who want to learn new things faster and also those who

are open minded’. One theme he repeated a lot was the ‘pace’or the’ movement’ of

both people and the economy in Hong Kong and in terms of CCT said ‘people walk

and talk faster in Hong kong’, meaning one must be prepared to adapt quicker.Thus

effective CCT is required.

CCT by many has been said to be extremely beneficial to avoiding culture shock.This

is supported by Prepscius (2015) of Asia Pacific BSR who in a former job with ‘Nike’

received CCT with a local mentor being provided to help soften the impact of the

cultural difference. He said it was ‘very beneficial’ and was a good tool in order to

identify ‘self awareness’ and cultural difference. He also said that in order to succeed

on a short term assignment that one must use this ‘cultural mentor’ to build a ‘web of

knowledge’ so that if they return they will have knowledge of what to do in different

contexts. He identidied learning a ‘few’ words of the local language as imperative to a

succesful trip. He stressed that to avoid “offending without knowing”, supported by

McDermott (2015), to show humility rather than come over as ‘invasive’ as

unfortunately some Americans are known to do.

In addition, the views of Ni Dhonnacaha (2015) Deputy Consul General Hong Kong,

were observed to gain an insight into her perspectives as she deals with complex

cultures regularly. When speaking on the topic of CCT she said ‘firstly, one must

understand cultural differences in order to adapt’,she then went on to say, ‘learning a

few basic words really help with gaining your counterparts trust and also breaking the

ice’. Cafferkey (2015) an Irish expatriate in Maylasia gave his slant on dealing with

various cultures. He said he learnt ‘by doing’ such as ‘no pointing’ at anyone or

shaking hands with women. These were a most unexpected and interesting insight to

the vast cultural differences with Asia . In terms of CCT Cafferky (2015) said

first:“one must not judge and give every culture a chance” as the ‘culture has been

there for hundreds of years and we’re not going to change it”, instead we need to

adapt and even ‘learn a couple of words so that we can (humbly) seek acceptance

from them in order to be accepted’. He is of the opinion however that CCT

programmes are too ‘formalised’ and it is ‘difficult to fully learn before you go’ and

its imperative to ‘learn by doing in the actual environment itself’.

       

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4.3 Guanxi

The complex topic of Guanxi was investigated in relation to answering the research

question and brought with it valuable angles to the report. The findings from the

report appear to portray Guanxi still as a significant factor in business in China but

vary in relation to the extent of the role guanxi plays. Ho (2015) delcared that in order

to build Guanxi with business counterparts, one must have ‘heart and passion’ to

‘understand the ‘logic’of any culture. He said in business ‘we have partners and

competition’ but ‘regradless we need to know both of them’ and thus building

relationships is crucial to that which he says are ‘not built in day one, but are built

over time when one comes to respect the system’ which has been in place for

generations. Costigan (2015) gives his slant saying: “Guanxi is simply an

amplification of relationships which we have in the west already” and continues to

say: “Westerners find it ‘relatively easy to culturally adapt in China and Hong Kong

as we have experience of building ‘business relationships from the bottom up”.

Cafferkey (2015) agreed with this saying: “ one major advantage Irish people have in

doing business in China/ Hong Kong is ‘our abaility to adapt and build relationships

and trust in a way like no other people” He also mentioned our own ‘network system’

across the world is that of the ‘GAA, which he says: “Saves lives in Asia”. Ni

Dhonnacha (2015) also said:”The Irish have an ‘edge’ on other countries as the Irish

are ‘totally based on trust and relationships.The GAA is at the fulcrum of such a tight

knit network of trusting community systems be they in business or family. This is

what comes naturally to us”. Ni Dhnnacha (2015) said these networks help the Irish

‘transfer and adapt their Irish culture to the Chinese, and build trust and sustainable

business relationships’.

Prepscius (2015) gave the impression that Guanxi is a choice, one can ‘opt in or out’

and said it is important to ‘research it and understand what exactly it is and what it

entails’. McDermott (2015) stated: ”Guanxi is very important. The relationship starts

as a business one but gradually moves into a personal one, where the trust is with you

as the person who is a business-man rather than with the company”. He says: “It

‘takes a number of meetings to establish such trust in order to be considered family.

Interestingly, he says: “In contract negotiations, “‘yes” doesn’t always mean “Yes”

and thus ‘we must re-evaluate our ‘western trust’ system to ‘see past their surface

       

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cultural behaviors”

Croughan (2015) compared building trust and business relationships to ‘dating’. On

the first meeting ‘there is minimal conversation about the business but more so in

developing trust and relationships through mutual interests, friends etc. Futher to this,

she stressed ‘humility’ in all realtionships in China. While we naturally tend to

promote our ‘strengths’ with the Chinese she stresses ‘modesty’ and also to ‘admit

personally one has a lot to learn in terms of language and cultural understanding’. She

continues to declare that she ‘doesn’t see the Chinese bending their feelings towards

business Guanxi as they are a global powerhouse who are self-sufficient, able to

support themselves without western business partners. Therefore it is up to us in the

west to adapt and change our ways, to re-evaluate what we mean by ‘strength’.

Such views show the importance of cultural understanding and the necessity for

cultural sensitivity and appreciation in doing business in China.

Notably Guanxi has also openly been linked with corruption. This was evident for the

researcher whilst on the research trip. Such practices lead to major challenges which

may not be seen as a priority for foreign businesses. A talk attended by the researcher

at the HQ of the ICAC, (Independent Commission Against Corruption) brought into

clear focus how “black money” became a necessary way of life. Although it is now

not as serious due to the establishment of the ICAC in 1974, business people need to

be aware of corruption and understand the fine line between doing business through

Guanxi and corruption. Corruption is a key area of interest in China’s five year plan

with Ho (2015) stressing the ‘new leaders drive to wipe out corruption’.

.

       

  16  

Figure 1: Reports of Corruption By Region

Figure 1 shows Corruption in China most rampant by region from a study by Charney

research (2015) shows Hong Kong owned firms were found to be more likely to pay

bribes at 44 percent, compared to foreign firms at 37 percent, and under developed

Mainland China firms at 32 percent

Ni Dhonnacha (2015) gave her experience of dealing with Gift Giving during a state

visit of president of Ireland to Beijing earlier that year. She gave the example that the

‘Gift’ to be exchanged was to be of small monetary value but more ‘sentimental and

symbolic’ value as to avoid any presumption or suspicion of bribery. McDermott

(2015) portrayed similar experiences with an important factor that it be more of a

‘gesture or token gift’ rather than lavish gifts to avoid any notion of bribery. He also

went on to say that business in China is becoming more ‘westernised and this

tradition is becoming less prevalent and is a nice gesture but is not essential’. The

ICAC recommend one should seek ‘approval from their company to accept any gift or

gesture in conducting business’

In summary, the international field trip has allowed this report to provide in its

findings a dossier of the key issues facing foreign executives carrying out business in

China. The main findings are the Chinese Dream, CCT, Guanxi, cultural

understandings and Coruption. It would be prudent for foreign firms to acknowledge

       

  17  

these issues as when a foreigner is aware of the potential issues associated with doing

business, through CCT it makes these challenges much easier to overcome.

                                                                                         

       

  18  

5.  Discussion  

This section of the report provides discussion and analysis of the importance of

differing factors that will help foreign business people to overcome the

aforementioned issues thereby enabling them to do business more successfully in

China. These guidelines have been generated using the relevant literature in

conjunction with the author’s personal experiences. The points include:

5.1 Changing political enviornment

Too often the political enviornment has been overlooked by many critics and

academics as a worthy contender for the most important factor in doing business in

china. Understanding such helps the assignee grasp a political understanding of the

enviornment which they will be entering into, which this will aid cultural adaptation.

At the moment, the current chinese political enviornement is in a state of transition.

At the top of the agenda is the chinese governments clamp down on corruption in

their latest 5 year strategic plan. A paper by (Li ,,Meng, & Wang 2008), on Chinese

Political connections found that political connections to the party in power can have a

beneficial effect on a firms performance. Party membership was also found to be

conducive to obtaining loans from banks or other state institutions, which gives

enterprises that are run by Party members a distinct advantage over others. This

shows the corruption and unethical behavior which Xi Jingping’s government is

trying to immobilize. There is also considerable debate concerning how fast China is

moving toward a Westernized emphasis on the rule of law. (Guthrie 1998) believes

shifts in the economy have led China to redesign the legal system to a more

westernized ‘American’ system in such a way that it favors efficiency which is in line

with Ho (2015) who stated China is now ‘trying to learn form the west’ so foreign

firms and especially assignees can gain advantage from this if they learn to adapt to

this changing political landscape. Ho (2015) also believes it is a ‘good step’ for doing

business in China which does not agree with Eisenman’ (2015) view that China has

been targeting foreign firms making it very difficult to do business there.

       

  19  

The findings from this report illustrate that China’s changing political system in the

form of the ‘Chinese dream’ is a significant factor and a telling contribution for

foreign companies to consider especially in short term assignments where Guanxi is

extermeley important in developing in early business dealings. The changing nature

for China and HKs relationship has increased more recently and Western firms need

to be aware of this in order to avoid certain disruptions such as bribery or corruption

in developing Guanxi in future business dealings through cultural experience and

dealings and effectve CCT.

5.2 Can cultural adaptions be flexible?

CCT has been one of the most investigated topics in expatriation research according

to (Brewster 2001) who stated in 1995, that expatriates are regularly assigned to all

parts of the world with little or no cross cultural training, Which is challenged by

Croughan (2015) who determined that ‘understanding the core cultural values through

CCT helps to delfect any problems that could occur with little or no CCT’. (Black &

Mendenhall 1990) are of the view that CCT can be described as ‘factual’ training

methods which in fact do not allow one to actively engage in the learning process

which ties with Cafferkey (2015) who is of the opinion that such methods can be too

‘formalized’ which (Black & Mendenhall 1990) don’t agree with who see CCT as a

‘positive spill over’ on ones development and job performance while in a new

enviornment which is reinforced by (Tung 1981) who found that the more training

provided to expatriates, the less chance of failure. The indiviual is also an important

factor in deciding whether or not to apply CCT. Ho (2015) says it is imperative to

‘send those who learn new things faster and those who are open minded’

A major contribution of this report for future study was the dawn of cultural dexterity.

(Molinsky 2013) argues that in order for one to have complete appreciation for any

new culture, one must have ‘global cultural dexterity’ which is the ability to ‘adapt or

shift behavior in light of any cultural differences’. Prepscius (2015) noted when

working with Nike he received CCT which came in the form of a local mentor which

is highly recommended by Molinsky (2013) as a key form of ‘cultural ice breaker’

which Prespicus (2015) reinforced and said it was a ‘very beneficial’ tool in creating

       

  20  

‘self awareness’ in differing cultural contexts which he worked in. Cultural Dexterity

is the effective integration of these components.

A Publication by (Hazard 2012) said that Cultural Dexterity is a process of discovery,

adaptation, and creation of techniques that an individual can employ across any

cultural context. The underlying principle of Cultural Dexterity according to (Hazard

2012) is that the dynamics of intercultural interaction are always fluid. Cultural

Dexterity training’s main competency is built over time through real world

application which links to the opinion Cafferkey (2015) who says ‘one must learn by

doing’. (Molinsky 2015) also noted that learning a ‘few words of the native tongue’

can go along way in being ‘accepted’ or ‘trusted’ in a new enviornment. This

guideline is supported by the experiences of Ni Dhonnacha (2015) and Prepscius

(2015) who both see ‘learning a couple words can really help with business and

personal relations’. Another interesting finding saw McDermott (2015) examine the

need for a small ‘checklist’ of dos and donts to reinforce CCT prior to departure

which can also be seen in (Hazard’s 2015) paper to make the transition more fluid,

but Cafferkey (2015) emphasised that ‘we cannot change these cultures as they have

been around for hundreds of years, it is up to us to adapt and change’.

Prespcius (2015) remarked that one should ‘ do the due dilligence before entering a

new enviornment’ which would work parallell in going into ‘discovery mode’ when

entering a new enviornment. (Dutra 2013) says its fundamentally important to expand

‘learning agility’ being aware of environmental differences, learning from unfamiliar

situations, and applying such lessons to new occurences in future dealings.

With this change in ‘agility’, short term assignees can develop cultural dexterity to

‘effectively navigate across any cultural difference as cultural dexterity improves each

time it’s practiced’. Cultural dexterity goes beyond the realms of personal

relationships and advances into aiding the creation of strategic advantage and higher

performance, enhancing growth and business results.

Therefore a leading finding from this report for future study that coincides with

contemporary arguments on CCT is that CCT is an integral part of a short term

assignee effectiveness. Going further, cultural dexterity is an advised approach to take

when entering a new business or cultural enviornment.

       

  21  

5.3 Is Guanxi everywhere?

According to (Abramson & Ai 1999),cGuanxi is a vital factor in doing succesful

business in China. (Lovett 1999) describes it as the necessary foundation of business

relationships that contributes to efficiency in the organization and competitive

advantage

Figure 2: ‘Guanxi system (China Australia Consult)

‘Fugure 2, shows the development of a typical Guanxi system with family being to

the core which brings with it the highest level of trust. Mcdermott (2015) gave his

experience of constantly building relationships to gain trust and be considered family,

as at this stage he says you ‘are onto a very good line of business’ which

complements (Buckely & Casson 1998) view by saying that ‘trust is seen to be one

of the leading issues on a corporate agenda’. Ho (2015) added that to build Guanxi,

‘one must first have care & passion in order to understand the logic’ of not just the

chinese culture but any culture, thus reinforcing (Molinsky’s 2013) view on the need

to have‘cultural dexterity’ historic

Costigan (2015) gave a fascianting point for discussion declaring that, ‘Guanxi is just

an amplification of relationships which are already in place in the west’ which lead to

the investigation on the similairty between Chinese Guanxi and Irish peoples ability

       

  22  

to build networks and relationships at ease. At the heart of this globally and in Asia, is

the GAA.

The emphasis of the GAA is community. Thus here one can see similarities between

Chinese and Irish cultures in their ability to network and build relationships and

culturally adapt more quickly, something which Ni Dhonnacha (2015) says give Irish

people an ‘edge as Irish peoples relationships are based on trust’ which is at the core

of such a tight knit ‘community system’ which is reiterated in Clinton Institute UCD’s

research, thus aiding to help Irish people adapt more effectively and efficiently to

cultures such as Guanxi in China. A key finding here is that Guanxi is indeed an

important aspect of overcoming cultural challenges in HK but Irish managers have

been particularly adept at tapping into institutional structures in HK in the form of the

GAA. Although a natural trait of Irish people to adapt, time must be given to each

individual cultural context to analyze and appreciate difference before jumping in.

5.4 Don’t cross the line

Another pressing issue with Guanxi is its issue with corruption. The ICAC (2015)

stated how ‘black money’ became a necessary way of business life (Yang 1994) said

that Guanxi ‘represents corruption and other wrongdoings such as nepotism, bribery

and fraud, which are now being stamped out by Xi Jingping’s government. Gift

giving is seen to be dying out in today’s China. Ni Dhonnacha (2015) gave an

example of it being important not giving someone a gift of high monetary value but

more ‘sentimental and symbolic value’. McDermott (2015) reiterated the importance

of not giving ‘lavish expensive gifts’ in order to avoid suspicion of bribery or fraud

which was challenged by (Chua 2012) which showed the ‘myth of gift giving’ and

how it is slowly being phased out due to anti corruption programs but also a more

westernized business environment.

Therefore a critical contribution of this report to existing literature is that it highlights

the contemporary discrepancies in how western companies associate gift giving with

Guanxi and the implications this has for potential corruption. Such an issue increases

the demand for appropriate CCT to educate short-term assignees of the changing

       

  23  

environment both legally and ethically to factors such as gift giving and corruption

when doing business in China.

                                                                                         

       

  24  

6.  Recommendations    

China is said to have one of the most complex cultures to do business in and with

China predicted to over take USA with the worlds largest markets, this leads to

marrying the two into the research question of this paper, How important is CCT for

short term assignees in understanding the cross cultural differences of doing business

in Hong Kong?

Fail to prepare, prepare to fail

(Early, 1987) said through CCT, expatriates may be better equipped to cope with

unforeseen events in the new cultural context and to avoid any unnecessary conflicts

due to unexpected actions or occurrences. The researcher in Hong Kong found such a

view. Not once was CCT dismissed over the duration of the simulated assignment, but

was agreed upon by many to be a pivotal instrument in over coming cultural

differences. A topic of discussion was that of Guanxi and its relevance in modern day

business in China, which one could feel, was slowly vanishing alongside the days of

corruption and bribery. The new governments plan is changing the business

environment and culture of China both for Chinese and foreigners alike maybe

unintentionally but its changing none the less. Thus, the need for one to be

appropriately trained to be knowledgeable in a particular culture for both business and

human interactions with the ambition of fulfilling cultural dexterity is crucial. The

timing of such training is also crucial, as for a short term assignment, real life

experiences, practical learning and a cultural checklist should be used close to

departure to help gain cultural dexterity for assignees.

As the literature and findings suggest, cultures no matter where in the world, all have

their own distinctive traits, norms and behaviors which have been around for

hundreds of years, thus one must be sensitive to this, but more importantly, if a

culture seems to be in stage of change business or otherwise, assignees must be

appropriately trained to adapt to such changes in order to make such short term

assignments worthwhile and fruitful. As the laws and policies of China change to law

enforcement and anti corruption, with this comes opportunity for short-term assignees

       

  25  

for example, using Guanxi and ethical relationship building as a resource to be

exploited to overcome cultural barriers.

It is an exciting time to do business in China but as Ho (2015) said, companies must

‘send only their best young people who want to learn’. This researcher feels such

learning should come in the form of CCT with the goal of achieving cultural dexterity

to pro long the individuals ability to travel globally thus being more effective

individually and to the company.

Put on your seatbelt

A critical recommendation identified was the vastness of opportunity available to one

and all in China/ Hong Kong, both lifestyle wise and career opportunity. The

overwhelming advice from expats and business people who have completed similar

short term assignments is to ‘GO’ at every chance as its an economy full with

opportunity. Nonetheless, one must not get carried away with themselves and take

their time in order to stand back, assess the culture and apply their CCT and past

experience and knowledge to each and every cultural situation they find themselves to

be in.

                                         

       

  26  

7.  Conclusion  

With China posied to overtake the US economy and become the leading global

powerhouse, any business wishing to be succesful must identify this economy as a

paramount objective for success. Such opportunity brings challenges and issues and in

the case of China like any other setting, cultural challenges and behaviors are present

which need to be identified prior tp departure in order to achieve an effective short

term assignment. Such facets have laid the objective for the research of this paper,

How important is CCT for short term assignees in understanding the cross cultural

differences of doing business in Hong Kong? Firstly, a clear and detailed literature

review helps to identify the array of studies on the topic of CCT, and cultural

understanding of Guanxi in the context of China/Hong Kong. The findings of the

report then present fresh hands on examples of the varying attitudes and viewpoints to

the Chinese Dream, CCT, Cultural understanding and Guanxi in China. An

appreciation and sensitivity towards such will help assignees to adapt to cultures

through hands on real life interactions and experiences. The discussion then looks into

the importance of:

• Being aware of political activity and changes in todays Chinese environment

which can be incorporated into CCT to maximize knowledge transfer and

confidence in assignees,

The  flexibility  of  cultures.  Are  they  changing  to  a  more  westernized  one  or  is  is  up  to  us,  the  westerner  to  adapt,  which  lead  to  the  next  and  most  crucial  point  of  the  paper  which  was  that  of  cultural  Dexterity.  This  is  a  crucial  angle  brought  to  the  paper  and  is  a  keen  recommendation  for  anyone  doing  business  in  China  

• Guanxi, which can prove difficult for expatriate Assignees. Such cultural

dexterity will allow one to become adaptable in a short term assignment, to

differing situations which may arise in changing cultural environments like

China/ Hong Kong through up to date, hands on, practical and fresh CCT prior

to departure to ensure the most effective and successful trips are worthwhile.

The defining recommendation of this report is that China/Hong Kong is in a time of

change, politically and economically. Their intiricit culture, yes, is a crucial part to

doing business however, it is up to the west to change and adapt and have cultural

dexterity and appreication in order to be flexible to such a changing enviornment, thus

the importance of effective CCT cannot be overlooked by any company planning on

doing succesful business in China.

       

  27  

 

 

 

 

 

 

 

 

 

 

     

8.  Bibliography    

       

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9.  APPENDICES          APPENDIX  A

Table 1, Popular forms of Business Assignments

Inpatriation Which involves the transfer of subsidiary managers to the HQ for a specific period of time (Harvey et al. 2000). This would allow key subsidiary managers to get to know the workings of the parent company and build up informal communication networks

Self initiated assignments A growing number of assignees make their own arrangements to find work abroad facilitated by the introduction of free movement of labor in the European Union and other economic regions

Virtual assignments Companies have begun to make use of virtual assignments in order to address the competing needs for decentralization and global interrelation of work processes in a more flexible way. A virtual assignment does not require the individual to physically relocate to a foreign organizational unit but rather distributes international responsibilities as managed from the individual’s home base.

       

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APPENDIX  B    

Table 2, Various contributors to Data Collection

Name Gender Age Position Company Method of

Delivery

Date &

Time

Leo Ho Male N/A Professor of Chinese

Business Studies

Hong Kong

Baptist University

Formal

Presentation

June 1st

10:00 AM

ICAC

speaker

N/A N/A Corruption Agent Corruption

Agency

Formal

Presentation

June 2nd

14:00 PM

Fiona Ni

Dhonnaca

Kenny

Cafferkey

Paul

Costigan

Female

Male

Male

N/A

N/A

Deputy Consul General

Lecturer of IHRM

Chairman

Irish Consulate

Kulala Lumpur

University

Irish Chamber of

Commerce HK

Roundtable discussion

“

“

June 5th

16:00 PM

Dr Jenny

Chan

Female N/A Professor/Researcher labor

law

Professor Oxford

University

Formal

presentation

Q&A

June 4th

9:00

AM

Jeremy

Prepscius

Male N/A VP Asia-Pacific BSR Informal

Q&A

June 4th

14:00 PM

Tony

Mcdermott

Ronan

Donnelly

Ashling

Croughan

Male

Male

Female

N/A

N/A

N/A

VP Irish quality systems

company

Stock loan Hedge Fund

Business Analyst

APAC

Ambition

Survey by

email

“

May 8th

       

  33  

   APPENDIX  C  

JOURNAL ENTRIES

Day 1 Journal entry Hong ‘keep up with the pace’

Kong Baptist Universtiy DR. Leo Ho

Today we had a very interesting talk on Doing Business in China with DR Ho who

has over 25 years experience of management if ICT, Engineering and industrial

global organizations In Asia. One aspect which I noticed was we were all given name

tags, we were all equal, treated the same and there was a collective aspect to the talk.

The college itself was in prsitine condition with a strong emphasis on being

enviorenmentally friendly.We had a coffee in the coffee shop beforehand, which I

noticed was very like an american students coffee shop I had been in recently at

Berkeley University. The room was spacious and clean and a microphone was used to

maximise our learning and clarity.

It was easy to identify from being in his presence that he is a driven, energetic and

appealing person who was clear in what he spoke about and one could sense the pride

he has in what he has achieved and how he now feels itstime to pass on his messgae

to ‘future leaders’ as he said he is in history but our young generation are the

future.He feels it necessary to advise the young to help ‘plan for the next china before

this one is mature’

He acknowledged failures that he has encountered over the years have acted as

opportunities for success for him and also will for others in the future.

He noted the opening up of China to selective countires in 1978 and said this was for

the sustainability and surivial of China.

A vital message I got from the talk , was that in order to be succesful, a company

must be succesful in China as ‘money talks’ in order to gain trust, and respect with

top management to be the best you can be in order to align this with the companies

strategic path.

‘Pace’ was spoken about as a key detrimant to success in the maretplace and with

global assignments, it is those who learn the ‘fastest’ who will achieve. With Culture,

       

  34  

he said there was ‘no good and bad’ with culture as it is the same for both sides. One

needs ‘time and passion’to understand the ‘logic’ of the differing cultures. ‘friends

and enemies’ both know each other so partners should also know each other.

He says in order to build trust we must gain friends first then business.

After the talk, We ate in the college canteen which was something else. The

efficiancy of the system is something I have never experienced before, you order in

one room, then collect in another then eat.

After this talk we went to the International Antique exhibit in the Hong Kong

Exhibition & Convention Centre as we were lucky enough to be attending the

‘Antique Exhibit Tradeshow’ at 1PM. The building itself, known as HKCEC is a

major part of the Hong Kong Island skyline and located on the Victoria harbour-front.

This modern building is internationally renowned as it was voted Best Convention

and Exhibition Centre in Asia for the ninth time by industry awards in 2012, I felt

privileged to be there. I talked to a london based store and learned a lot about the

origins of some of their relics and watches a lot of which were from Geneva. In the

1800’s these were once exchanged between the chinese and europeans as gifts to do

trade. Now the Chinese are buying these old relics back and is a very afluent,

expensive market. This ancient art of ‘Gift giving’ is a key area of my study on

Culture in China, and I have seen first hand the Gifts which were given, one of which

was on sale for £150,000 which shows the worth today but also the historical

significance and cultural practices in place in China which we took part in today by

presenting Leo Ho with a gift for his talk today.

On the way home from the Antique Show I stopped by a ‘Hong Kong Innovation

Awards’ exhibit in the Causeway MTR station.I took a few minutes to look around at

the latest inventions and innovative products that the young people here are inventing

and which I am sure will see in Ireland in the near future.

I visited the ‘Ladies market’ in the city also where every kind of handbag, accessory,

gadget and clothing type was available for negotiation for the best price something

which I enjoyed a lot. I noticed that all the stalls were very tidy and efficient and the

owners welcomed us with an english ‘ Hello’ . We negotiated in every store and were

       

  35  

succesful as they were very intent on selling as quickly as possible,something I was

not surprised by with their cunning and efficient ways of doing business.

Day 2 Journal entry ‘Don’t cross the line’

Today, we had a late start so I went for lunch with some of my Chinese colleagues in

the class in a chinese Hong Kong style restaurant. Surprisingly I was asked to come

alone with no other class mates, I asked why, and was told they don’t paticlaurly like

large groups of people at dinner and as it so happened there was 6 seats at our table

for 6 people, the chinese accomplished efficiency again. I had a chicken and rice stir

fry. I initially made for the chop sticks to eat the rice but was reliably informed by my

friends that doing such an action is a sign of ‘death’ in Chinese culture, something I

was very apologetic about. Six of us fitted into a small table very comfortably and I

was told that Chinese place all belongings off the table ,so no phones, wallets or sun

glasses on the table. This meant no distractions at all just conversation and sharing of

food which I found to be a pleasant change from the ever present technology on our

western dinner tables. I really enjoyed experiencing eating with my friends and was a

great cultural awareness experience.

We then assembled in the lobby of the hotel at 2 o clock for the talk at the anti

corruption Agency Hong Kong. Smartly dressed, we travelled by MTR and walked

for 5 minutes in the blistering humidity to arrive sweaty to the ICAC. One of the most

shocking things I learned was of the challenges the independent commission

overcame to become the cleaner more business friendly place, and how just 50 years

ago ‘black money’ became a necessary way of life and that even firefighters or

ambulance paramedics demanded money before carrying out their job. One thing I

noticed in particular was how she reiterated the importance of the I (Independent) in

ICAC, meaning the commission is not affiliated with the Government and instead

reports directly to the Chief Executive of Hong Kong, for who which I observed, is

there is to be an election in 2017 for this position, showing Hong Kongs adoption of

democracy.

During the presentation an interesting issue touched upon was gift giving with which

the term ‘entertainment’ was used. I learned that the immediate consumption of

entertainment is permitted and was explained how being brought out for an occasional

meal is ‘normal’ but bringing home a bottle of wine is considered an ‘advantage’ and

       

  36  

therefore discouraged and all practices had to match with that of the company of both

giver and receiver of gifts. After the meeting we were taken to a large room (with an

amazing view!) that showcased many interesting anti-corruption cases. Each case was

displayed in a unique and ornate fashion, the main case I looked at was the landmark

case of Godber as Agnes Kwok had spoken about it in our meeting. Peter Fitzroy

Godber, The chief of police who had been accused of corruption managed to flee

Hong Kong and escape to his homeland Britain. Following Godber’s escape, there

was outrage among people from all walks of life resulting in the establishment of the

ICAC which was free from the Police Force and the rest of the civil service. I noticed

a gift was not given or token of gratitude after our meeting. After we finished viewing

the cases we assembled for a class photo, one of many so far on this trip.

After this myself and a few classmates travlled by MTR to Mordy RD, to look at

buying tailor fitted suits. One feature of the MTR stations was the lines at the

platforms, clearly defining where people are to stand within ‘red lines’ whilst queing

for the train, this is something you definiely would not see at a que for the Luas in

Dublin! We rambled and found a suit shop which one of the faculty had been before

and built a relationship with and they immediately looked up Kieron’s name and

once they realised he was a repeat customer they could tell him what he had

previously purchesed and were more than willing in helping us. After tough

negotiations and various threats to leave, 6 of us were given a very good deal

considering the bad exchange rate at the moment.

We then returned to the hotel for a quick shower, then into taxis and off to see the

peak views of Hong Kong. The views were spectacular especially at night time with

the cities lit up and constantly ever changing colorful skylight. We travelled by taxi

and something I have noticed with taxis is the passenger in front is in charge and

directs the driver and also manages the money, so a certain element of trust and

hierarchy exists between both parties as I also noticed that the drivers do not talk to

passengers in the back.

Day 3 Journal entry ‘Sushi and clogs, an interesting mix’

On Wednesday Morning I was pleased that a culture day lay ahead of us. We walked

as usual to the MTR station at Causeway bay and by now I was a pro finding my way

       

  37  

around and figuring out what train route to take. We made our way to Tsim Sha Tsui

Station in Kowloon. The Hong Kong Museum of History was just a short walk from

the station. The Museum was magnificent, and also free today which was great! it has

managed to squeeze 400 million years of history into one building. The collections

are divided among three major areas: natural history, ethnography and local history. I

spent most of my time in the local history section as I felt I had to get an

understanding of the local folk culture in order to comprehend why the importance of

building relationships is common among Chinese people as I had been told that it was

based on their history. I was taken aback by the old fishing villages, ege, Stanley who

fished in dangerous circumstances in junk boats. Religion was a mjor part of their

culture and gods were worshipped for safety and fortune at sea. I continued on my

rambles and came across how the people used to make salt using dykes of up to five

ponds through a process of crystalization with the help of raw engineering and no

technology. This salt was then used to help preserve fish and shrimp and was a vital

contributor to the sustainiabilty of the people.

I then watched a video relating to the modern history of Hong Kong and the relations

between China and Hong Kong after the War, it gave a vivid impression of post war

development, the economic and social climate and the emergence of the commonality

shared by the population as a whole. I wrote a wish on the wishing tree which was an

old chinese tradition which we in Ireland have in the form of wishing wells. The want

for success and health is common to both our cultures. One could also notice a lack of

mention of the british colonoial past during my observations. Upon leaving, what

struck me was the stark contrast between contemporary design of the museum itself in

contrast with the years of history it held inside.

For lunch we went to a japansese restaurant, where I had Sushi for the first time. It

came on a tray with various dishes on it. I ate Wasabi for the first time and also ate it

with out soy sauce and nearly burnt my mouth to pieces. It was a real traditional

restaurant where the waiters ran around on wooden clogs which sat on stilts which

‘clogged’ around to our amusement. Some of the class ate at the food preperation bar

and were required to take off their shoes to eat there which was an interesting eye

opener of varying cultures.

After lunch we visited the beautiful Wong Tai Sin Temple’s in hope that all our

wishes would be granted as it claims to ‘make every wish come true upon request’. It

houses three religions (Taoism, Buddhism and Confucianism) in a beautiful and

       

  38  

natural setting. I saw many worshippers pray and give offerings and so I made an

offering of health and happiness with my family and friends.It is a tranquil place with

gentle music to be heard around the trickles of water and cherping of birds. It is a

truly special place. I did notice however, that the temples are right across the road

from high rise apartments which are not best pleasing on the eye. I guess this is due to

the sheer demand for space to cater for the vast population and even aesthetics or

location are not taken ito consideration when planning.

On the MTR that evening, I over heard an asian girl and english man talking. They

were looking at friends wedding photos and as it turned out, she told him that in

china, the wedding photos are taken before the wedding and not on the day of it, to his

amazement and dis-belief. I found this to be an interesting point to learn of their

traditions and ways.

Later that evening, we went to the Happy Vally races where this elegant race track lay

between hills and high rise buildings. I thoroughly enjoyed the it and Happy Valley

Race Course was just minutes from our hotel and was surrounded by the beautiful

night skyline. It was like nothing I had ever seen before. I noticed a lot of westerners

present and also chinese inside gambling, but mainly westerners. It is an opportunity

for a real mix of cultures to come together, where there was a Bollywood dance show

on every half hour or so, and also differing nationalities of the trainers, jockeys and

the MC’s were from england. Hong kong is a different place than china in my view

due to globalozation and I really don’t think its an issue, its an opportunity for

everyone regardless of culture or background.

Day 4 Journal entry ‘Delivering to the world’

An early start was had today with the meeting time of 8:30 down in the hotel lobby.

We set off again smartly dressed to the Kaplan college meeting rooms for a talk with

Ms Jenny Chan on labor law in China. She was very engaging and full of energy and

helped to quickly wake us up. She spoke about Hong Kong’s emergence of labor due

to the opening up of its economy to the world and also of rural migrant workers. Then

she changed her focus to that of Foxconn who apple use for cheaper labor and

manufacturing which has resulted in terrible working conditions which she herself

went undercover to investigate. We watched a video on this and it was a real eye

opener as Apple products lay on the tables in front of nearly all of us.

       

  39  

In Foxconn asa many as 14 deaths by suicide was shocking to hear. She explained

that within the company they make the varying departments compete against each

other thus, who will be the best and who will work the hardest, leading to physical

and mental exhaustation. They were non stop for 24 hours with 40% of their revenue

coming from Apple and a 13 day working week for workers.

Apples former CEO Steve jobs has left a legacy for me of a negative outlook. Yes he

did innovate and boost the technological advancements of the world but at a cost.

There is always a cost and this has resulted in poor working conditions and deaths by

Foxconn workers.

Next to talk to us was Guan form SACOM with a smiliar topic of lobbying for better

conditions for workers. This is done through media coverage through all mediums,

youtube, television, advertisements, headlines and protesting. It was a very interesting

talk with some real eye openers which I think we can all be naïve to accept or

research more into. I am glad I was present at these talks and the chance to meet these

people so I can tell and spread their knowledge and wisdom back home.

We returned to the hotel where we waited for a bus to collect us.

Next we went to visit the DHL Central Asia Hub which was located around 45

minutes towards the airport by bus. This was a vast building with security points and

security scanner machines. We were told on a couple of occasions not to take any

photographs at any time.

A major expansion of the hub has led to DHL enhancing its position in the region and

world with an investment of $210 million. Along with this investment comes

investment in AirHongKong which is expanding its fleet which further broadens the

companies offerings around the world. We were given a quick presentation and

watched a video on the process which exists, which seeing planes land and take off

just metres from the room we were in which was pretty cool! We were shown the new

automated system which is in place during our walking tour, and it is very impressive

to see the parcels being ushered down to their destinations collection point, scanned

and wateh by over 200 CCTV cameras. The hub is the definition of efficiency

handling and processing over 35000 shipments and 40000 docuents per hour. The

lady also said it takes 27 minutes to have deliveries off a plane, through customs and

gone again towards its final delivery destination. I did notice the heat in the

warehouse was very warm with up to 500 employes sharing 4 shifts a day as they

       

  40  

work 24 hours a day 365 days of the year.I felt more could be done in terms of air

conditioning to accommodate the excessive humidity.

I thought it was interesting that after the talk with Ms Jenny Chan about Apple and

other products using a lot of chinese based manufacturing, that a lot of goods we buy

could travel through this DHL hub and it opened my eyes to the bigger supply chain

which exists.

After a rushed bus journey and a quick lunch, we were back at the Kaplan College ,

for a talk with Jeremy Prepscius, a man with vast experience in doing business in Asia

with nike and is now VP Asia pacific BSR.

It was a Q&A session where he was very energetic and mad some very interesting

observartions based on his experience. In terms of negotiations he said, the chinese

need to learn how to deal with the outside world and work with them and also that

foreigners should understand the chinese aswell for a two way dialogue, so this made

me think about CCT and is it necessary? He said it is down to the person and not

necessarly the training, If the person is going awy to ‘run away’ the project will fail

but if their going to ‘learn’ it will succeed. Also, he then mentioned that CCT can take

the form of the internet of our generation and we have more resources available to us

to be more cultural sensitive. Due dilligence is necessary in all over seas assignments

he said. In terms of Guanxi he had differing opinions like many who we have talked

to. He seemed to relate Guanxi to ethics and whether you want to build relationships

around the conecpt or not eg, people who can bribe or be involved with fraud in order

to get places or those who build networks of people in order to succeed. He says this

initial contact with people is crucial to the success of the relationship, Connecting

with them or finding a common ground on which they can relate to is a key detriment

to success.

When asked about culture shock, he said embrace it & accept it. He said culture shock

is more likely and tougher with repatriation and not expatriation. I found this

interesting and he continued to say he struggled going back to the US, and found

being an outsider easier to adapt back to as people don’t care.

He spoke about Collectivst power distance cultures and said that there is a ‘grain’ of

truth in them, for example, Intel have a corporate culture that he says can be more

important then the national culture and that managing cultural diversities within this

corporate culture is the key to success and comes down again to the individuals

       

  41  

respecting one anothers differences, good and bad in everyone whilst working

towards common ground.

I found this session to be very helpful and Tony exchanged a gift with him on behalf

of the college.

We walked back to the hotel where we relaxed and got ready for the Anniversary of

the Tienamen square shootings which fell on this day. At this, I noticed a small group

of Chinese carrying large british flags which I felt to be very interesting.

Later that night my cousin and his friends arrived to Hong Kong from a short stay in

Beijing, he could not get over the differences between the two and said the sheer size

and effeciency of space being used really opened his eyes which he would have a key

eye for being an artichect.

Day 5 Journal entry ‘Lobster, Music & Lightbulbs’

Today we had a late start to the day so myself one of my chinese couterparts helped to

organise a Dim Sum lunch for those interested at a local Dim sum restaurant. I didn’t

know what to expect but was competley blown away by the meal and the sheer

amouht of food being continiously brought to our table. Over 25 people came to the

lunch which included ‘tapa’ like fish, meat, rice, noodle and vegetable dishes, I even

tried chicken legs, but maybe wont again! We even ordered a fully functional and

kicking lobster of which everyone got great excitement from, he was then killed and

we ate him which was absolutely beautiful. A lot of our chinese friends in the class

atteneded which was great for everyone as they helped to explain what the different

dishes were and differing interesting facts and ingredients in them, for example, when

pouring tea if someone taps their finger off the table this means they have enough,

which I practiced a lot!

After this, myself and one of my colleagues went to times square shopping centre for

a look. We went into a shop called Muji, and I could hear this music, I investigated

more and noticed it was in fact Irish music being played in the shop which is a

Japanese company. I stayed in the shop for 20 minutes and listened to even more Irish

traditional songs being played on the speakers of the high end fashion shop. I asked a

shop assistant and he said that he thought it was chinese music, which in fairness, for

one song did sound similar as one could argue due to the slow nature of the flute

       

  42  

playing, but it was definitely an Irish tune a I play it myself at home.We were really

blown away by this, as it was the last thing we thought we would hear in Hong Kong.

We also found out that this music is played in every Muji store in Hong Kong and is

on a generic playlist.

Later this evening we then had an evening in Delaneys bar with the Irish Consul, the

chamber of commerce and other member of the Irish business community in Asia.

This was a very insightful talk where Q&A took place and some interesting insights

were given , for example Fiona of the irish Consul gave the example of when the

president made a state visit to China, a conscious effort was made not to give a gift of

too much financial value as to avoid any allegation of bribes or corruption by the

receiver.

Relationships were also talked about at length and all had a general consensus of

making the effort, being open and appreciating differing perspectives to be the most

important aspects of developing these relationships when doing business in China and

Asia. Cultural diversity is an opportunity said paul from the chamber of Commerce

and with regard to CCT and all said the best way to learn how to deal with cultures is

to imerse yourself in it and ‘jump in’ and learn on the ground.

Getting food after Delaneys, I met a man from glasgow who owns a lightbulb factory

in shenzen and was on business in Hong Kong for the weekend, when asked about

‘Guanxi’ he responded by telling me, it was a ‘city about two hours past shenzen’.

This was interesting and I explained my understanding of ‘Guanxi’ and he basically

said that this cultural concept is alive in every society and culture in the world and

that this is just a ‘tag’ or name put on a more intersting chinese culture.

Day 6+7 Journal entry ‘Handbags, views and My own Guanxi’

After a late night on Friday, we were late at rising up on Saturday, We went for food

together in a small chinese restaurant and I had a lovely fish stir fry, however the

service in this restaurant and others which we were at was not great, the food tended

to come out in drips and drabs, something I noticed throughout the week so it is hard

especially when in a large group.

We rambled around the city for a look and bought a few handbags and presents for

people at home and then made our way to the ferry terminal where one of my

classmates had organised an outstanding ‘Junk’ boat trip for the class which was a 4

       

  43  

hour cruise around Victoria Harbor with unlimited food, drinks and craic with

everyone. You could actually hear the silence at one point as the views were just too

good to describe. We were all in awe of this wonderful city with its vast infrastructure

and efficient building projects.

After this amazing boat trip we all assembeled at the ‘local’ at this stage to watch the

Galway hurling match, I invited all the Chinese students to come and join us for our

final night and a lot joined us which was great for everyone.

Also on this night was the champions league final between Barcelona and Juventus

and I was amazed at the amount of Chinese locals wearing Barcelona jersyes in

packed bars and pubs to watch the game and really proved the demand and size of the

football clubs brand over in Hong Kong and the power it possess. On the note of sport

a frequent topic of conversation with Irish out there was the impact and importance of

the GAA in relationship builidng and networking with others. We met a man who

came out to teach english but ended up meeting different people through the GAA,

and now works in Morgan Stanley.

Even today Monday, the day we fly home, I was sitting beside a young man from

Celbridge, Co. Kildare, who is moving to HSBC in Hong Kong when he returns there

in two weeks after two years with another financial company. After chatting to him he

said he had heard of my NUIG MSC class heading out there for the last 4 years, and

it turned out he is a member of the Hong Kong Chamber of Commerce and also an

Irish rugby community which paul, who gave us a talk in Delaneys on the Friday,

organises the annual Irish ball each year, so you could say through these networks and

relationships we were all connected, and performed our own kind of Guanxi which is

exactly was a main objective of this paper, identifying the validity of Guanxi in doing

business in China, and by meeting people like this, and exchanging business cards and

having a drink, I am very confident that my own ‘Guanxi’ built in Hong kong and the

plane journey home if pursued could help me get a start in such a vibrant economy.

All in all this trip has opened my eyes to the Asian world. Hong Kong is westernised

but not too much I feel, yes it is influenced but it still holds its traditional uniqueness

and has strong language and cultural differences which need to be respected and

adapted to by anyone visiting or doing business there.