Eat the food, drink the booze and settle the deal! : A study of intercultural differences in China from a Swedish B2B perspective

Abstract: Background: China is today regarded as Sweden’s most important business partner in Asia. Even if there are cultural differences between Sweden and China the intercultural distance has successively decreased. One of the reasons is the globalisation. Another reason is the consecutive development of Swedish-Chinese relations. The interpretation from common understanding has increased the level of trade between the nations. There is an on-going development of business co-operation between Sweden and China.  The Purpose: This Bachelor Thesis will examine the differences between the Swedish-Chinese business culture and how the cultural differences affect the Swedish B2B in China. The purpose is formulated by the basis of our main research questions; “How do Swedish B2B companies perceive the cultural differences between the Swedish and Chinese way of doing business?“ and “how do Swedish companies operating in China deal with business cultural diversity in China?”  Theoretical Framework: The basis of our Bachelor Thesis examines the theories within cultural dimension. The theoretical framework is based on proven studies from e.g. Hofstede’s Five Dimensions, Trompenaars Cultural Diversity, CVS, the GLOBE Study, Cross-Cultural- Communication & Adaptation and Guanxi.  Methodology: We have used an abductive approach with the basis of a qualitative research strategy. The primary data is gathered from six different case studies; Scania, Ludvig Svensson AB, Formox AB, Century 21, Business Sweden and Småland-China Support Office. The empirical findings will further be interpreted with the theoretical framework, analysed and we will finish up with our conclusion.  Conclusion: From the research examined we have identified a numerous of business cultural differences between Sweden and China. Even if the cultural barriers including communication, decision-making, co-operation, relations and business behaviour differs there are numerous of essential exploratory effort that can be initiated to prevent cultural misunderstandings and barriers. This fundamental will be presented as our suggestions.