Business communication in interactions between Mainland Chinese and Western firms through Hong Kong Chinese intermediaries

Abstract

PurposeThe paper aims to analyse the nature of business communication and its influence on relationships development between Hong Kong Chinese intermediaries sourcing from Mainland Chinese sellers involved in manufacturing for sale to Western buyer firms.Design/methodology/approachA case study‐driven methodology with purposeful sampling is applied to yield maximum variation in the sampling to elicit underlying tendencies and generative mechanisms that exist within and across the multiple cases of relationships.FindingsThe paper finds that Mainland Chinese sellers and Hong Kong Chinese intermediaries tend not to have the close ties that might be expected. Mainland Chinese sellers constrained their use of social information, requiring Hong Kong Chinese intermediaries to use commercial information transfers to evaluate the trustworthiness of their Mainland Chinese partners. An ingroup/outgroup bias exacerbates the modesty bias of the Mainland Chinese and also hinders learning through the transfer of technical information within these Chinese interactions. On the other hand, Western buyers tend not to prefer social information interactions with their Hong Kong Chinese intermediaries, requiring these intermediaries to emphasise commercial information interactions to evaluate the trustworthiness of their Western buyers.Research limitations/implicationsThis research uses a restricted sample of case study respondents. Representative sampling across multiple contexts will assist in testing the generality of the findings.Practical implicationsFor the West to source increasingly attractive manufactures from Mainland China, Hong Kong intermediaries will remain fundamentally important even though this creates further interactions. The aggregate of these multiple exchange arrangements is less problematic than would be the case if Western business were to deal directly with the Mainland Chinese.Originality/valueThis article sheds light on the nature of business communication interactions in a group of relationships between Hong Kong Chinese intermediaries and Mainland sellers, and buyers from the West. Implications for relationships development among the Chinese and Western actors are identified with propositions framed to guide further investigation.