Challenges facing the expatriate manager in China

Résumé du document

This report aims at giving the readers an overview of the main cultural and communication differences between Norway and China. It focuses on business relationships. This report will help DrillCo AS with executable recommendations and valuable advices to face all challenges that will emerge in penetrating the Chinese market and sets forth factors that are critical for success in China. As a result of the tremendous economic growth and liberalization of the past 30 years, China has become an attractive market for foreign companies, leading many to travel the road to China. The success of international ventures depends crucially on the performance of key expatriate personnel. These expatriates must often operate in a foreign country with little guidance from their corporate office. In view of the significant impact that expatriate decisions have on the organization, the selection and appointment of these individuals becomes very important. This paper seeks to identify the personal and situational factors associated with expatriate success in China.

Extraits

[...] Many of the same practices that work in Europe or Western countries and elsewhere also work in China. Fundamental business practices such as setting clear objectives and methods to measure success, thinking through the rationale for pursuing such objectives, establishing a tactical plan to achieve the objectives, finding the right people with whom to work, understanding the market and competition and being prepared, work throughout the world. - Drillco needs someone able to understand and develop Guanxi, a fundamental notion in the Chinese business world (developed earlier in this paper). [...]

[...] It is a legacy of the communism history. The new manager should develop a strategy for dealing with key government constituencies. The foundation of this strategy is meeting and cultivating relationships with government officials at all levels. The manager in China should make a social call and introduce him or herself. Thereafter, such officer should make frequent telephone calls and personal visits to discuss issues of mutual interest. Although it may take weeks or months to schedule a brief visit, the Norwegian company should be persistent. [...]

[...] These expatriates must often operate in a foreign country with little guidance from their corporate office. In view of the significant impact that expatriate decisions have on the organization, the selection and appointment of these individuals becomes very important. This paper seeks to identify personal and situational factors associated with expatriate success in China. Procedures Data were collected mainly through academic papers and newspaper articles such as International Journal of Management, the Licensing Journal, etc. These articles deal with how doing business in China and the main negotiation and transaction specificities. [...]

[...] The Chinese place great value in the status of a person and strict hierarchical relationships. Even relationships among family members are not always on a “first name” basis. Europeans view themselves as problem solvers who are constantly seeking the right answer or solution. For the Chinese, the process of building the relationship is more important than solving the perceived problem. - One major point or advantage is that the manager should know the national language. It is a must to understand the way of thinking of Chinese people and deal with them. [...]

[...] Humility is a powerful tool in China. Accordingly, the company must be open to learning from the local Chinese. - The manager should have a previous international experience or have been already confronted to the “cultural shock”. An expatriate's “cross cultural awareness” or “degree of internationality”, which may include factors such as ethnic background, previous expatriate assignments, language skills and travel experience, is likely to influence the candidate's ability to adjust to a new environment. Expatriates are more likely to succeed if they are more “international”. [...]