Import from China : The straight way to success?

Abstract

Abstract The interest in China today is enormous, and media talk about successful firms and entrepreneurs that engage in business with China. This positive image has created a general per-ception that China offers the moon and the stars for Swedish micro and small sized enterprises (MSEs). We still believe that there are many opportunities to extend or build busi-ness upon import from China. However, we question media’s communication that import from China is a straight way to success. If this is an accurate picture of the situation, what is it that makes Swedish companies hesitating about establishing import business from China? The purpose of this thesis is to identify the reasons for Swedish MSEs to engage in import from China, as well as recognizing the problems they experience. We will by analysing the underlying factors of the problems describe different ways to handle these issues. We have chosen a qualitative approach with semistructured, deep-going interviews, which we have carried out on six companies that have gone through with the import process from China. The empirical findings will be the base in order to verify the theories on this subject. We have come to the conclusion that there is a division between production companies and trading companies when it comes to the reason to start importing. Trading firms generally follow the opportunities while production companies are forced to take action because of push effects. Also, the hype about China has helped in choosing China before other countries. The companies in this thesis have generally no trouble in finding a supplier but rather to find suitable suppliers. The major problems in trading with China are quality and delivery, which many companies handle by shortterm procedures like over-explicitness, constant reminders and increased specifications. They argue that these problems depend on lack of understanding, variation in outlook, different behaviour, as well as pride and attitudes among the Chinese. However, we believe that these issues have their roots in culture, linguistics and different views of how relationships should be considered. Thus it would be a more long term solution to handle the underlying issues which in the extension is a more successful way of importing from China