EMPIRICAL FINDINGS
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ships with members of the board of directors of the CNTC. The two actors nurtured
an interpersonal relationship through alter-casting but most importantly the devel-
opment of this interpersonal relationship was due to visits to each other’s country of
origin, which in turn enhanced understanding of each other’s mind-set and ways of
thinking (interview: GF General manager). They also discussed business opportunities
and potential market entry as well as shared their views on socio-cultural aspects of
life and found common ground among China and Greece.
In September 1999, the two central actors set up a joint company in Beijing; GF Chi-
na. Its purpose was to start negotiations with CNTC and in particular STMA. The joint
company was registered in Hong Kong and operated in Beijing for over three years.
During this period, the GF general manager visited China for around six months per
year. The aim was to organise and deliver presentations to various tobacco manufac-
turing units of CNTC. The total cost of the presentations and until the first deal of GF
China with STI had been completed reached $0.5m. In other words, this interpersonal
relationship assisted in identifying key business actors and influenced the identifica-
tion and nurturing of new relationship patterns, which in turn had an impact on inter-
organisational activity links, exchange of resources and firm actor bonds. The above
also imply that a close relationship between two actors can gain access to a foreign
buyer, or supplier, in this case, into the local actor’s networks.
The biological filter is a patent that belongs to Golden Filter (GF), a Greek owned com-
pany. GF is partly owned by SEKAP, which manages the production of the biological
filter. SEKAP is state-owned; it is part of the Agricultural Bank of Greece, which is also
state-owned. SEKAP exclusively produces the biological filter on behalf of GF. The pro-
duction of the innovative filter takes place in Newcastle, UK. For this project, deliver-
ies were sent directly from the UK to China. However, for this product development
project, GF’s role and influence was significant. At the time of negotiations, the STI PD
manager was employed at CNTC headquarters. Although the general manager of GF
visited many factories in China, only the business relationship with STI was nurtured
and then developed. This was due to the interpersonal relationship that had been es-
tablished between the GF general manager and the STI PD manager. Having devel-
oped interpersonal ties, STI sent specifications to the foreign supplier, such as designs,
diameters and pressure job details. Since then, the GF general manager usually visits
China once a year in order to maintain close relationship ties and nurture interperson-
al relationships with existing as well as new business actors. At this point, it should
also be mentioned that CNTC sponsored part of the deal. CNTC not only assisted STI
financially with new product development, but most importantly promoted the new
brand to the upper social class in various Chinese regions, as a product that eliminates
the bad health effects of tobacco consumption.
