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Reform of Sales Management and Evolution of the Role of Guanxi in China

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Abstract:

An old case study of B2B sales in the Shaanxi's machine tool industry shows an early stage of reform of the sales function in China. Without foreign influence, many State-Owned Enterprises (SOEs) nevertheless moved to professionalize sales. Strongly reforming SOEs began building sales forces of qualified, trained professionals. Customers themselves reported that prior guanxi was not necessary when they encountered such reps, and began placing trial orders. Good service led to bigger shifts of volume to these professional reps, who gradually developed guanxi in the course of interaction with their customers. This new guanxi served mainly to facilitate information flow in a consultative sales role.

Document Type: Research Article

DOI: http://dx.doi.org/10.5848/CSP.3614.00005

Publication date: January 1, 2012

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  • Advances in Business in Asia: The Opportunities, Threats, and Future Trends of Businesses in China, India and the ASEAN Countries
    Advances in Business in Asia examines current trends and issues facing organizations operating in a global business milieu. The book comes at a pivotal time when many businesses are emerging from the 2008 Global Financial Crisis, and are seeking a way forward in dealing with the opportunities and challenges presented by global capitalism in general, and China, India, and the ASEAN region specifically. The book is a compilation of selected papers presented at AFBE conferences. The Asian Forum on Business Education (AFBE) is a not-for-profit organization whose aim is to provide a forum of scholarly exchange in the areas of business, economics and management, with a particular focus on the Asia region.
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