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Yuarn and Feng in Doing Business in China: The Perception of Chinese Owner Managers
Dr. Wai-sum Siu
Department of Marketing
Hong Kong Baptist University
Kowloon Tong
HONG KONG
Tel: (852) 2339 7532
Fax: (852) 2339 5586
E-mail: wssiu@hkbu.edu.hk
Key Words: Yuarn, Business Practices, China, Taiwan and Hong Kong
The author gratefully acknowledges the financial support of the Chiang Ching-kuo Foundation for International Scholarly Exchange, and the National Natural Science Foundation of China and Hong Kong Research Grants Council Joint Research Scheme.
Yuarn and Feng in Doing Business in China: The Perception of Chinese Owner Managers
Abstract
Since Rotter (1966) validated the locus of control construct, there is research on locus of control in Chinese societies. However, the contribution of Rotter's Locus of Control Scale to Chinese entrepreneurship research is unclear. Specifically, the indigenous concept of external locus of control, Yuarn, in a Chinese socio-cultural context, has not yet been examined. Entrepreneurship researchers point to the lack of any substantial assessment of the state of the art of research into entrepreneurship in regions other than North America. Thus, to advance entrepreneurship research and build an indigenous model, this paper attempts to explain Yuarn or external locus of control, of Chinese owner-managers. In-depth interviews with 48 Mainland Chinese, 26 Hong Kong and 28 Taiwanese owner-managers and/or chief marketing executives of the small and medium enterprises were undertaken.
The interview results suggest that Yuarn is an 'antecedent' in doing business. Yuarn is important to relationship building, and it helps the owner-managers gain advantages over their competitors. However, Yuarn is also a 'mediating' factor that can facilitate initial contacts with customers. Good marketing skills, however, like good product quality, excellent service and competitive price, are needed to make a deal. Chinese owner-managers perceive that there are six factors affecting Yuarn. They are fate, same philosophies, networking, appearance, personal character and government policies. Figure 1 is a tentative model depicting Yuarn and doing business in a Chinese socio-cultural context.

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