MARKETING IN CHINESE SMALL BUSINESS: TENTATIVE THEORY

Abstract

Much of the literature on small firm marketing has adopted the Western marketing paradigm. Though researchers such as Kindle (1982) and Waldie (1980) have pointed to the importance of using traditional cultural values in understanding Chinese marketing decisions, there is no major study of Chinese small firm marketing which adopts this approach. Siu and Kirby (1995) suggest an integrative approach — blending the process model and the contingency approach in building and advancing small firm marketing theory. Hence the marketing process model proposed by Brooksbank (1990) is adopted as the research framework for understanding the marketing activities of small firms in Hong Kong. Six broad areas relating to business philosophy, strategic analysis, marketing objectives, marketing strategy, marketing organization and marketing control are identified. The contingency model used by Brooksbank, Kirby and Wright (1992) is adopted to identify different types of performing companies. In addition, Yau's (1994) Chinese cultural value orientations are adopted to explain the likely Chinese cultural influences. Five types of value orientation are used as to provide the analytical framework, namely Man-to-nature Orientation, Man-to-himself Orientation, Relational Orientation, Time Orientation, and Personal-activity Orientation. The research results reveal that Chinese small firms in Hong Kong exhibit different marketing behaviour from their western counterparts, when compared with UK findings for example. Higher performing Chinese small firms place marketing as the leading or joint leading role in their corporate planning processes and also adopt a longer-term strategic planning approach. They also use more aggressive marketing strategies and put more emphasis on product performance and credit support. However, explicit marketing control devices appear not to be used. The influence of Chinese cultural values on the marketing activities of Chinese small firms in Hong Kong is found to be significant.