Quotation Kasper, Helmut, Schilcher, Stefan, Kodydek, Georg. 2015. National Culture in International Companies. An Empirical Study on the Impact of Chinese Societal Values and Practices on the Organizational Cultures of Foreign Subsidiaries in the People´s Republic of China. GBATA 2015, Lissabon, Portugal, 07.07-11.07.


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Abstract

Since China´s entry into the WTO the number of foreign direct investments (FDI) have increased rapidly. While many international companies tend to promote their own organizational culture globally to improve control and integration of their oversea branches (push force), subsidiaries in China are embedded in a very different national culture, with its own unique values and practices (pull force). Cultural differences between headquarters and subsidiaries may lead to a number of problems and challenges such as difficulties of implementing standardized human resource practices or the promotion of a global corporate strategy. Consequently, it is important to develop a better understanding of the relationship between Chinese national culture and foreign organizational culture. This is why we conducted an empirical study among Austrian and German companies of various industries in several Chinese cities, as part of our "Culture follows Strategy?" long term research project. Totally, the sample comprises of over 650 Chinese employees of different hierarchical levels. For the operationalization of Chinese national culture we made use of the original Global Leadership and Organizational Behavior Effectiveness (GLOBE) study questionnaire. The GLOBE study distinguishes between nine cultural dimensions (Uncertainty avoidance, Future orientation, Power distance, Institutional collectivism, In-group collectivism, Humane orientation, Gender egalitarianism, and Assertiveness), which are measured in the form of societal practices (as things are) and societal values (as things should be). For the research of the different organizational cultures in the foreign subsidiaries in China we applied the Denison Organizational Culture Survey, which distinguishes between four essential traits (Adaptability, Mission, Consistency, and Involvement) and twelve corresponding sub-dimensions.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Paper presented at an academic conference or symposium
Language English
Title National Culture in International Companies. An Empirical Study on the Impact of Chinese Societal Values and Practices on the Organizational Cultures of Foreign Subsidiaries in the People´s Republic of China
Event GBATA 2015
Year 2015
Date 07.07-11.07
Country Portugal
Location Lissabon
URL http://gbata.org/conference/

Associations

People
Kasper, Helmut (Details)
Schilcher, Stefan (Former researcher)
Kodydek, Georg (Details)
Organization
Change Management and Management Development IN (Details)
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