Formation of Cultural Competitive Force When Doing Business in China

Topics: Culture, Globalization, Cross-cultural communication Pages: 11 (2561 words) Published: October 8, 2013
Asian Social Science

May, 2008

Formation of Cultural Competitive Force
When Doing Business in China
Maohua Sun
School of Mathematics and Computer Science, Nanjing Normal University Nanjing 210097, China
Tel: 86-25-8528-2055

E-mail: dongxiaobo@163.com

Abstract
With the globalization of world business, China has become an appealing market for foreign investors. The problem of cross-cultural management arises as the cooperation between China and its culturally different Western partners continues to increase at an unprecedented rate. This paper presents an understanding on the general cultural differences between the west and China by applying the cultural dimensions of Hofstede and Bond. The author points out that the all-round impact of cultural difference over transnational operation of enterprises affects not only the cooperative strategy, but also the operation and management. It is only through cross-culture communication and management that enterprises can establish good reputation and attain success in its operation. Culture is one of the decisive factors for the success of operation. To realize cross-culture effective management, we must consider solving cultural conflict as the key. In the process of the management, we must pay more attention to the influences of cultural difference on the market choice, product service, entrance mode and system cost, and accordingly formulate a correct strategy, ignore and reduce the cultural difference, or adapt and make use of it. As economic globalization is driving cultural globalization, the culture in the multinational corporation will fuse gradually from differences. Keywords: Transnational operation, Cultural difference, Cultural competitive force 1. Cultural differences in transnational operation of enterprises and its influence 1.1 Cultural differences exist objectively in transnational operation of enterprises What is culture? Among researchers who have given a variety of definitions of culture, Hofstede is one of the first to adopt a pragmatic problem-solving approach in the field and relates culture to management. As is pointed out by G.Hofstede that culture is a kind of "collective programming of the mind, which distinguishes the members of one category of people from another" (Hofstede, 1980). With the globalization of world business, China has become an appealing market for foreign investors. The problem of cross-cultural management arises as the cooperation between China and its culturally different Western partners continues to increase at an unprecedented rate. Hofstede explained that culturally-based values systems comprised four dimensions: power distance, individualism/ collectivism, masculinity/femininity, and uncertainty avoidance. Further research by Michael Bond (Bond and Hofstede, 1989, pp. 200) identified a fifth "Eastern" dimension called long-term/short-term. By applying Hofstede's and Bond's cultural dimensions, a cultural comparison between America and China is made. (Pan Fan, K. & Zhang Zigang, K. , 2004) Table 1. Cultural Dimension Scores of United States and China Legend for Chart:

B - Cultural Dimension Scores Power Distance
C - Individualism
D - Masculinity
E - Uncertainty Avoidance
F - Long-term Orientation
A

B

C

D

E

F

United States

40

91

62

46

29

China

80

20

50

60

118

37

Asian Social Science

Vol. 4, No. 5
Table 2. Cultural Differences Between America and China
Legend for Chart:
A - Cultural Dimensions
B - USA
C - China
A

B
C

Individualism/Collectivism Strong individualism
Strong Collectivism
Power Distance

Medium
Centralised, tendency
toward democracy

Uncertainty Avoidance

Risk-taking
Risk-avoiding

Masculinity/Femininity

Medium Masculinity
Medium Femininity

Long/short-term Orientation
Short-term Orientation
Long-term Orientation
In general, China stresses the social role of the group, whereas Western people emphasize...

References: Bond M and G Hofstede. (1989). The cash value of Confucian values. Human System Management, 8, pp 195
Bond, M & G, Hofstede
Hofstede G. (1980). Culture 's consequences: International differences in work-related values. Beverly Hills, CA: Sage.
Pan Fan, K. & Zhang Zigang, K. (2004). Cross-cultural Challenges when Doing Business in China: Singapore
Management Review, 01295977, 2004 1st Half, Vol
Shi, Tianlin, Ma, Yangxiang & Fan, Jin. (2004). Cross-cultural management in transnational operation of Enterprises.
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Cross-Cultural Challenges When Doing Business in China Research Paper
  • The Cultural Challenges of Doing Business Overseas Essay
  • Cultural Challenges of Doing Business Essay
  • Americans doing business in China Essay
  • Cross-Cultural Differences Between Doing Business in France and China Essay
  • Doing Business in China Essay
  • Doing Business in China, Japan, and South Korea Essay
  • how do business in china Essay

Become a StudyMode Member

Sign Up - It's Free
Watch movie | Descargar APK | MOTEUR CENTRALISATION DE PORTE RENAULT Espace 3 Clio 6025001797 7701039565