Determining Probabilities for a Commercial Risk Model of Czech Exports to China with Respect to Cultural Differences and in Financial Management
Josef Polak
Keywords:
commercial risk, competitiveness, corporate finance, cultural differences, modelling, risk assessment
Abstract:
Certain risks associated with particular human activities cannot be eliminated, with commercial
risks representing factors of business success or failure. In the current turbulent environment,
proper risk assessment and management is of utmost importance in maintaining competitiveness.
The aim of this paper is to present the output of our research which focused on the assessment
of commercial risk faced by exporters to China, specifically, determining the probabilities
for commercial risk model management. Along with this, the cultural context of the Chinese
market influencing risk size are explored, particularly the concepts of tan-wej, kuan-si, li-ťie
and mien-c’, the effect of which was confirmed by our exporter survey. The research focused
on Czech companies exporting goods and technologies to China. The study involves manufacturing
enterprises (section C, CZ-NACE Rev. 2) as well as, more specifically, medium and
large scale engineering, along with chemical and electrical power companies. Firms exporting
common consumer goods, raw materials and recyclables were excluded from the study. The data
were obtained from controlled interviews with company representatives (with 58 percent of
the exporters participating in a 2013 research) and from Justice.cz (2016) which published economic
results of all exporters registered in 2015. The study outcomes were further reviewed in
2016–2017 using follow-up interviews and literature reviews. In collecting the primary data and
verifying research outcomes, semi-structured and structured interviews were conducted, following
which methods of descriptive statistics and statistical dependence analysis were applied. The
findings allow for the construction of a commercial risk assessment model for export to China,
involving relative risk costs.
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 Determining Probabilities for a Commercial Risk Model of Czech Exports to China with Respect to Cultural Differences and in Financial Management [PDF file] [Filesize: 753.87 KB]
 10.7441/joc.2019.03.07
Polak, J. (2019). Determining Probabilities for a Commercial Risk Model of Czech Exports to China
with Respect to Cultural Differences and in Financial Management. Journal of Competitiveness, 11(3), 109–127. https://doi.org/10.7441/joc.2019.03.07
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