Australian businesses in China : strategies to overcome the cultural gap

This paper indentifies a main barrier when doing business with China, the cultural gap, and provides the strategies that companies can use when entering the Chinese market. This empirical study examined 40 Australian organisations in their activities when entering the Chinese market. Alarmingly after 30 years of attempting to do business in China, companies are still not addressing the issue of cultural differences. Companies are also caught by surprises due to lack of preparation how large the cultural gap is between Australian and Chinese business culture. The findings of the study have important implications for businesses considering entry to China, and for Australian businesses already doing business in China. The strategies investigated include human resource strategies, dealing with Chinese staff, relationship building, getting outside support (employing consultants), learning about the culture, and adapting to the culture.