SMEs’ changing perspective on international trade credit risk management in China: a cultural values evolution approach

Jiang Zhou, Ling Deng and Paul Gibson

Asia Pacific Business Review, 2022, vol. 28, issue 3, 333-353

Abstract: Due to the globalization of business, historically developed business practices based on cultural values can suddenly become dysfunctional. Chinese exporters, particularly in small- to medium-sized enterprises (SMEs), for instance, are adopting new trade credit risk practices in response to unreliable international customers. Through 45 in-depth interviews, we investigated how Chinese SMEs are changing their perspectives on International Trade Credit Risk Management by employing a cultural values evolution approach. We explained why some Chinese exporters, but not others, shift from affect-based to fact-based risk management practices concerning trade credit. As a major outcome of our research, we identified and articulated four alternative stances towards credit risk: conventionalism, polycentrism, pragmatism, and rationalism.

Date: 2022
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DOI: 10.1080/13602381.2020.1853936

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