Introduction
A joint venture between an African company and a foreign partner in China can have the best chances of attaining success if the following recommendations are considered by the partners involved. First and foremost, managers from both countries must have in mind cultural differences that exist between the African and the Chinese consumers and other stakeholders. The venture is surrounded by various risks that arise from the cultural fitness of the allying economies. The nature of the risk is considered to be sensitive and volatile hence, the need for managers to be well acquainted with the matter if the business is to be successful. Managers working in a joint venture must invest in mechanisms that foster a deeper understanding of Chinese culture particularly managing international business.
Main body
A comprehensive examination of the cultural difference existing between African and Chinese employees, customers as well as other stakeholders is of great significance. This is very essential especially for the African ally as it makes sure that the knowledge regarding the business in the host country is acquired. It is recommended that African managers appreciate the lower power differences characteristic of the Chinese population that does not put emphasis on people’s differences in power, wealth, and status. Therefore, more emphasis should be aimed at reducing the African medium masculinity and embracing the Chinese medium feminity by focusing on the roles played by the social relevance, values of quality life as well as the benefits of being good to other people.
Secondly, the analysis of Chinese culture reveals that just like the African culture, the economy tends to avoid risks that are likely to be encountered, hence the tendency to avoid the uncertainty associated with new situations. It is recommended that managers of the joint venture consider the high degree of Chinese culture while engaging in various business activities. It is beneficial to focus on the long-term orientation, where future scenarios and benefits are of great importance as opposed to short-term benefits associated with a short-term orientation.
Another cultural difference existing between the African and Chinese culture is that pertaining to the management of conflict. This is a common factor in any kind of business transaction especially in joint ventures involving different cultures. Therefore, it is recommended that in order for businesses to succeed in the Chinese business environment, it is essential that the management emphasizes the development of personal relationships by fostering harmonious business relationships. Chinese culture mandates that conflicts are resolved using indirect means as opposed to direct confrontation, thus conflicts arising regarding business engagements should be done in private and should involve the use of the right authority to facilitate negotiation and settlement of the existing differences. The success of a Chinese joint venture mandates that the management encourages conflict management strategies that do not compromise the business philosophy of ‘quanxi’.
Furthermore, it is recommended that to foster success in the business, managers ought to opt for a less participatory approach when it comes to decision-making processes as opposed to the participatory approach used in the African economies. This is essential for the success of business in China given the fact that Chinese employees do not question the authority, hence their tendency to resist participation in decision-making processes. Moreover, it is recommended that the management pays considerable attention to the feminine and collectivist nature of Chinese culture which requires that more significance should be attached to the development of inter-relationships, the ‘quanxi’ which is the center of many Chinese businesses.
Conclusion
Finally, when engaging in business activities in the Chinese business environment, it is recommended that great attention is given to relationships established as more significance is attached to the concept of family feeling, brotherhood, and networking. It is important for managers to understand the concept of ‘guanxi’ during the development of interpersonal relationships when engaging in business activities since this will help the venture to be successful.