CULTURAL FACTOR ABSTRACT:

Having a better understanding about China culture helps multinational firms to

experience a better success in China.

1. SOCIAL STRUCTURE: COLLECTIVISM.

Traditional Chinese agriculture is communal, not individualistic; survival
depends on group cooperation and harmony. Therefore, it is easier to
develop business in China when you have a good network relationship
(Guanxi).
2. RELIGION: For more than 2000 years, Confucianism was the official
ethical system of China. Honesty is also an important concept in Confucian
ethics. This often results in lower cautionary costs as companies can trust
each other to honor contractual obligations.
3. CHINESE ECONOMIC PHILOSOPHY: There is a Confucian maxim that
states, “harmonious while different.” In other words, people in organizations
should work harmoniously together while accepting different statuses and
viewpoints. Ideal Confucian form of business implies a high degree of
cooperation between employees at different levels as opposed to obeying a
simple unidirectional chain of command.
4. POLITICAL PHYLOSOPHY: Chinese political philosophy section covers
many themes and issues in major schools of thought in ancient China like
Confucianism, Daoism, Legalism and Mohism.
5. LANGUAGE: Nowadays, the profusion of English-language publications on
China available through the internet makes it relatively easy for foreign
companies to carry out some initial research on the Chinese market.
6. EDUCATION: China has a consistent education development system. This
is a favourable condition for foreign firms such as software companies since
there are a lot of high qualified human resource.

SUMMARY: The understanding of this information is essential to establishing a

relationship with future business partners and customers. This is especially
important when communicating with the Chinese in business. conclusion, China
software market is growing larger and larger. The dynamic changes generate
thousands of opportunities. With the favourable cultural conditions, a lot of foreign
software companies are entering the market to expand their business