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Cultural Issues In Joint Ventures With China

2331 words - 10 pages

How Cultural Issues Affect the Processes of Joint Ventures in China Since 2000

Nicolas Francisco Herrera Giraldo

Abstract:
This paper purpose is to identify which are the more
remarkable cultural facts at the moment of doing joint ventures with china. Taking in
consideration that this country has presented a representative economical growth and
that many western and occidental countries have decided to execute strategically
movements to improve their processes with tools as joint ventures. Different cultural
issues that distant the normal develop and pace of activities between China and other
different countries when doing international joint ventures were defined. This paper
...view middle of the document...

(http://www.labourmobility.com/three-differences-in-management-culture-)
China belongs to high power distance culture. The
PDI of China is 80. That is, inequalities among people are acceptable. The
subordinate-superior relationship tends to be polarized and there is not defense
against power abuse by superiors. In the Chinese business world, every single
member in Chinese companies is willing to follow office regulation and work
guidelines made by the owner. Employees do not want to challenge their senior
workers or supervisors and just want to obey the decisions or orders their
superiors make. That is, the order of rank is anchored firmly and Chinese
workers do not want to insubordinate occupational hierarchy.

1.2. Individualism, shows the level of relations within a society
Individualist cultures, emphasize personal achievement
regardless of the expense of group goals, resulting in a strong sense of competition.
Collectivist cultures, emphasize family and work group goals above individual needs or
desires.
Chinese manifestations of “individualism” do not stress an individual’s
separation, total independence, and uniqueness from external authorities of power.
Rather, individualism in the Chinese tradition emphasizes one’s power from within the
context of one’s connection and unity (or harmony) with external authorities of power.
(http://geert-hofstede.com/china.html)

Chinese thinkers frequently address issues related to
individual value, empowerment, authority, control, creativity, and self-determination,
yet they package these crucial aspects of individualism in ways that are generally
different from the way individualism has been packaged in the West.

Identified filial might be identified as important. This may
be interpreted as a constraint on innovation in society, where conservatism and
traditions will be retained. Filial piety aids the existence of guanxi-culture: who one’s
friends are is predetermined by one’s family or group membership. A lesson exists for
foreigners operating in China: loyalty to groups is rewarded with continued protection.

1.3. Uncertainty avoidance index
Uncertainty avoidance is the extent to which the cultures
feels threatened by ambiguous, unknown situations and have created beliefs and
institutions that try to avoid these. It indicates to what extent a culture programs its
members to feel either uncomfortable or comfortable in unstructured situations. The
extent is reflected in the Uncertainty Avoidance Index score.
High uncertainty avoidance cultures tend to be
worried about the future. They have high levels of anxiety and are highly
resistant to change. Therefore, these cultures develop many rules to control
social behaviors. On the other hand, low uncertainty avoidance cultures tend to
live day to day, and they are more willing to accept change and take risks.
Conflict and competition are natural, dissent is acceptable, deviance is not
threatening, and...

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