Cultural awareness in knowledge transfer to China—The role of guanxi and mianzi

Abstract

This paper examines cultural awareness in knowledge transfer to China. The concepts of guanxi and mianzi are fundamentally important in understanding cultural interactions in China. These concepts, generally analyzed at the personal level, are extended here to relationships between firms and with governmental bodies. Our findings suggest that foreign investors in China must be aware of these key concepts and must use their knowledge to establish better institutional connections with locally owned partners and government. Using these concepts to build trust lies at the heart of interactions with local stakeholders including employees, local partners and government officials. Government support and a shared mindset can only be secured when mutual trust is established. This has to be achieved by long-term engagement with the key actors.