Procurement: The Importance of “Gangxi” when Doing Business in Asia
The Importance of “Gangxi” When Doing Business in Asia
Guangxi describes the basic dynamic in personalized networks of influence, and is a central idea in Chinese society. In Western media, the pinyin romanization of this Chinese word is becoming more widely used instead of the two common translations – “connections” and “relationships” – as neither of those terms sufficiently reflect the wide cultural implications that guanxi describes. (Wikipedia)
Establishing a successful and long term business involving or working with Asian locals (China and Taiwan), requires devoting time to getting to know the people you plan to work with. Initially all contacts start as a result of a business need, however it is very important that if you or your company plan on expanding or pursuing additional programs in the future, that the relationship evolve to a more personal one.
Developing long term personal relationships with Asian associates requires an extended commitment in time, travel and social interaction outside of the day to day business activities. It is important to include in your travel calendar time to participate in family social activities (dinner, family celebrations, community interests) as this investment will develop and contribute dividends when expanding current business activities or contemplating the pursuit of new opportunities.
As with any good procurement agent or sales manager, maintaining an up-to-date and detailed profile on any contacts is a must. In North America, the information information on a contact is usually closely associated with the business. The information recorded in the person’s contact list contains most of the following:
- Name
- Position
- Company Name
- Company Address
- Business Address
- Business Phone
- Mobile Phone
- Fax Numbers
And for very few additional notes that includes additional information:
- When and where they first met
- Trade show participation
- A list of positions and companies the individual has worked for during the
- Amount of time they have known each other
- Last and least likely to be included and maintained is the information related to the contact’s immediate family such as spouse’s name and the number/sex/names and age of children
Networking in Asia and maintaining contact information is very much the same except the optional information is considered the most important.
Include all the detail contact information listed and used in North America, and most importantly add the immediate family information. Additional information collected that will prove to be essential and extremely valuable over time is as follows:
- Anniversaries
- Birthdays
- Community activities
- Children schools (especially if English is part of the curriculum and important to them as a means to expand their children’s views and future opportunities)
Remembering birthdays and anniversaries is highly valued in this environment. Bringing small gifts to the children when you visit and spending some time speaking to them directly so that they can practice their English are highly valued practices that can enhance the contribution that you can make to the development of the relationship and the family network. Lastly the relationship my involve providing assistance in helping the children pursue educational opportunities in North America by providing housing or camp access during the school off season.
Recognizing your success in establishing a valued and trusted relationship with an Asian family network is usually recognized by having your contacts immediate and even some members of the extended family have their children address you as uncle when you are visiting and associating with them outside of work commitments. It is very likely that several members of the family have and are very successful business people in different businesses and they have a network that is entirely different than the initial contact with whom you have built a relationship.