How do Chinese managers establish trust with New Zealand companies? : a thesis presented in partial fulfilment of the requirements for the degree of Master of Business Studies in Management at Massey University, Albany, New Zealand

Abstract

Trust is essential for business success and has attracted much academic attention. However, studies on business relationships between Chinese and New Zealand companies are limited. Therefore, this study aims to investigate the factors influencing building and maintaining trust, the effects of interpersonal relationships on trust, and the problems when Chinese managers cooperate with New Zealand companies. This research adopted semi-structured interviews to collect data on factors that assist Chinese managers in building and maintaining trust when cooperating with local companies and utilised thematic analysis to analyse the qualitative data. The results reveal that Chinese managers establish trust by valuing three factors — the companies’ reputation, product price, and quality of products or professionalism of services — and four strategies of tentative cooperation, thorough understanding, showing their companies’ abilities and improving strengths. Furthermore, four determinants that assist in maintaining trust are also identified, comprising the quality of products or services, regular contact, empathy, and adaptation to the environment. In addition, the investigation also shows that interpersonal relationships promote building trust; however, there are different opinions on whether a close personal relationship affects trust maintenance. Finally, this study has identified some problems when Chinese managers or owners cooperate with New Zealand companies. The minor problems that occasionally occur but only result in slight loss will be tolerated; however, if problems always occur and cannot be solved through communication or negotiation, it would cause a breakdown of trust. Hence, this study sheds light on trust in the business relationships between Chinese and New Zealand companies.