Finding similarities where differences are obvious – a comparative study of Serbian and Chinese business practices

Zakić, Katarina and Jurčić, Ana (2022) Finding similarities where differences are obvious – a comparative study of Serbian and Chinese business practices. In: 7th International Scientific Conference on “Contemporary Issues in Economics, Business and Management – EBM 2022”. Faculty of Economics, University of Kragujevac, Kragujevac, pp. 175-190. ISBN 978-86-6091-133-1

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Abstract

The Republic of Serbia and the People’s Republic of China started to develop better political and economic relations after signing the Strategic Partnership Agreement in 2009. The second impetus for further improvement of economic relations was Serbia's joining China's coordination mechanism “16+1” and “Belt and Road” Initiative. The third and final momentum that fully secured the relationship between the two countries was achieved by signing the Comprehensive Strategic Partnership Agreement in 2016. That is the highest level of cooperation that China can officially establish with other countries, and it is a testament to China's plans for Serbia. Thanks to previously mentioned circumstances, Chinese investments in Serbia have grown, as well as the number of Chinese companies working on infrastructural projects in Serbia. In a relatively short period, there was a significant increase in the number of Chinese businesspeople and workers in Serbia. Since the two nations have different cultures, traditions, and ways of doing business, some problems occurred. Both Chinese and Serbian managers and employees have difficulties adjusting to the new circumstances, so it is worth identifying similarities and differences in business practices to overcome occurring problems. The authors will use the comparative method to present the main differences in doing business originating from different cultural backgrounds and communicating and conducting business. In doing so, findings from two cross-cultural studies will be used, such as the Hofstede model of cultural dimensions and the GLOBE project. The authors conclude that according to the Hofstede model, management practices are different regarding uncertainty avoidance index, masculinity/femininity index, and long-term orientation. The GLOBE project indicates the following differences: assertiveness, future orientation, human orientation and uncertainty avoidance index. Both parties should improve their cross-cultural knowledge and work on overcoming cultural issues to achieve better business cooperation.

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