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"To utilize guanxi, or not to utilize guanxi"

Luttropp, Andreas LU and Liu, Jessica Jinzhi LU (2020) IBUH19 20201
Department of Business Administration
Abstract
The main purpose of this study was to investigate if guanxi increases or decreases international management control mechanisms for foreign MNCs in China. The authors interviewed managers at three Scandinavian MNCs with subsidiaries in China for a comparative case study. Based on previous literature, guanxi was categorized into personal guanxi and organizational guanxi, as well as family guanxi, business guanxi, and stranger guanxi. The international control mechanisms were categorized into output control mechanisms, process control mechanisms and social control mechanisms. The interviews were analyzed through both a within-case analysis and a cross-case analysis. The results showed that guanxi decreased certain output control mechanisms... (More)
The main purpose of this study was to investigate if guanxi increases or decreases international management control mechanisms for foreign MNCs in China. The authors interviewed managers at three Scandinavian MNCs with subsidiaries in China for a comparative case study. Based on previous literature, guanxi was categorized into personal guanxi and organizational guanxi, as well as family guanxi, business guanxi, and stranger guanxi. The international control mechanisms were categorized into output control mechanisms, process control mechanisms and social control mechanisms. The interviews were analyzed through both a within-case analysis and a cross-case analysis. The results showed that guanxi decreased certain output control mechanisms and social control mechanisms, while it had no effect on process control mechanisms. The study, which showed results in line with previous literature, contributed to the extensive body of literature on guanxi and international management control. (Less)
Please use this url to cite or link to this publication:
author
Luttropp, Andreas LU and Liu, Jessica Jinzhi LU
supervisor
organization
course
IBUH19 20201
year
type
M2 - Bachelor Degree
subject
keywords
China, Culture, Guanxi, International Control Mechanisms, Multinational Companies
language
English
id
9020169
date added to LUP
2020-06-23 14:33:07
date last changed
2020-06-23 14:33:07
@misc{9020169,
  abstract     = {{The main purpose of this study was to investigate if guanxi increases or decreases international management control mechanisms for foreign MNCs in China. The authors interviewed managers at three Scandinavian MNCs with subsidiaries in China for a comparative case study. Based on previous literature, guanxi was categorized into personal guanxi and organizational guanxi, as well as family guanxi, business guanxi, and stranger guanxi. The international control mechanisms were categorized into output control mechanisms, process control mechanisms and social control mechanisms. The interviews were analyzed through both a within-case analysis and a cross-case analysis. The results showed that guanxi decreased certain output control mechanisms and social control mechanisms, while it had no effect on process control mechanisms. The study, which showed results in line with previous literature, contributed to the extensive body of literature on guanxi and international management control.}},
  author       = {{Luttropp, Andreas and Liu, Jessica Jinzhi}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{"To utilize guanxi, or not to utilize guanxi"}},
  year         = {{2020}},
}