The official BLOG of the corporate culture institute in Vienna.

2013-12-26

What are the main differences between Western and Chinese Business Strategic Thinking?


A question raised by Strategic Management Consultant Muhammad AbuLaban, MBA,B.Eng. in the LinkedIn group: STRATEGY PROFESSIONALS NETWORK  (http://www.linkedin.com/groups?home=&gid=134530&trk=anet_ug_hm):

What are the main differences between Western and Chinese Business Strategic Thinking?
All MBA books that we have studied in graduate school of management in Malaysia were from Western point of view of strategy.
I wonder How Chinese business thinkers differentiate in their strategic thinking..
Do you have any idea?”

Well, good question; and we all know this attribute translates to “hard to answer” - like it seems to be always the case with simple questions. 

Of course nearly all strategy books and most popular management recipes are created with a specific western, US in particular, view in mind. Some US based practices fail already when attempts are made to apply them to “Europeans”. Surprisingly this strange human species turns out to behave different from what the US mainstream culture may predict. And – even worse – they are by no means homogeneous. 

This rift even widens at least tenfold when going further to the east: the differences become more profound as does the heterogeneity. A considerable number of attempts has been made figure out their very nature. However it turned out, that even the dimensions alongside which you could detect different values and attitudes are determined by cultural preconceptions. To put it plainly: To get the right answers we often even ask the wrong questions.

But the good news is that we are not alone. And we are not the first ones to ask these questions. A rather well-known name which is traded in the culture scene in this context is Geert Hofstede, whom I once called the grand old man of inter-cultural research (http://corporate-culture-institute2.blogspot.de/2008/03/what-silly-question.html). Geert devoted a major part of his life to find quantitative evidence that culture between nations differs. 

So there is a simple answer to your question as well - at least when you are willing to accept the underlying statistical research methodology. 

e.g here …
Just look at the high US-value for ‘Individualism’ which is remarkable low in China.  On the other hand ‘Long-Term-Orientation’ is valued low in the US. Here china shows a totally different picture.

Remarkable differences may be found between countries, which might look so similar from some more remote viewpoint, like …
Here Denmark dominates in ‘Long-Term-Orientation’, the Netherlands in ‘Individualism’ and Germany differs in its strong focus on ‘Uncertainty avoidance’ and ‘Masculinity’.
You may go on comparing e.g Japan (high ‘Masculinity’) and India (high ‘Power distance’)
In case of irresistible profound interest, I recommend to work yourself through the 500 pages of Geert Hofstede’s, "Cultures and Organizations".

I did it – and at least for me it was worth the effort.

Comments are welcome