The China Venture
The China Venture The China Venture
3.4.1 Culture Culture influences both economic behaviour and performance. In the Asian-Pacific region, several cultural and religious traditions exist: Confucianism, Taoism, Buddhism, Hinduism, Islam and Christianity. Additionally, Western attitudes like Liberalism and Communism have also influenced this region. 118 Corporate culture business culture national culture FIGURE 3-19: Three levels of culture When we talk about culture in this context, we have to differentiate between three stages: the national culture, the business culture and the corporate culture. These different levels cannot be separated, they interact. 3.4.1.1 National Culture National culture provides the basis for our behaviour, way of thinking, customs, etc. We are socialised into our culture and we learn through culturally defined symbols which have specific meanings. Through socialisation people gain shared understandin g in a society to allow adequately for predictable and co-ordinated social activities. 119 In essence, this constituted our cultural background, and is the main reason why people from other societies are different from us. Culture does have its basic functions like division of labour, providing social controls against deviant behaviour, distribution of power, and providing a sense of priorities and values. 120 At this point it is important to make a distinction between ‘nation’ and ‘country’. It is common to say that a nation, e.g. the Germans, live in one country, which is in this case Germany. But this view is too simplistic, separating different nationalities along country 118 Schütte/Lasserre, 1996, p. 101. 119 Terpstra/David, 1991, p. 20. 120 Phatak, 1992, p. 9. 126
orders. However, a country may also consist of peoples of different nationalities or ethnic groups, such as former Yugoslavia, the former USSR or Malaysia. 121 There are also nationalities whose people straddle more than one country, such as the Kurds or the Basks. 3.4.1.2 Business Culture Business culture is a sub-culture of the national culture. It often requires learning of cultural knowledge relevant to a person’s participation in the wider social-economic world. Business culture comprises the effective rules of the game, the boundaries between competition and unethical behaviour, the codes for conduct in business dealings. 122 We will discuss the differences in business culture between Europe and China in section Comparison of Business and Culture between Germany/Switzerland and China, later in this paper. 3.4.1.3 Corporate culture A business is an organisational entity with its own common and shared values. Characteristics of a corporate culture are shared values (e.g. ethical values on how to do business, business ideologies, and ideas of quality, co-operation, tolerance, hierarchy, control, etc.), shared norms (guidelines, leadership principles, etc.), shared attitudes (attitudes of the employees towards task, product, colleagues, leadership, company, development, customers, etc.) and shared artefacts (languages and language rules, behaviour, architecture, conferences and meetings, parties, rituals and ceremonies, myths and anecdotes, etc.). 123 Just like in the society, sub-cultures can also exist in a company. This could be due to the different functional, hierarchical, regional, or other affiliations of the members, or due to differences in their nationalities, sex, age, and other personal characteristics. 124 3.4.2 Comparison of Business and Culture between Germany/Switzerland and China What we are going to discuss in this sec tion should give you a general idea of Chinese business life and its culture. However, it does not guarantee a procedure without any difficulty 121 Stüdlein, 1997, p. 36. 122 Terpstra/David, 1991, p. 20. 123 Stüdlein, 1997, pp. 38. 124 Stüdlein, 1997, p. 39. 127
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orders. However, a country may also consist of peoples of different nationalities or ethnic<br />
groups, such as former Yugoslavia, the former USSR or Malaysia. 121 <strong>The</strong>re are also<br />
nationalities whose people straddle more than one country, such as the Kurds or the Basks.<br />
3.4.1.2 Business Culture<br />
Business culture is a sub-culture of the national culture. It often requires learning of cultural<br />
knowledge relevant to a person’s participation in the wider social-economic world. Business<br />
culture comprises the effective rules of the game, the boundaries between competition and<br />
unethical behaviour, the codes for conduct in business dealings. 122<br />
We will discuss the differences in business culture between Europe and <strong>China</strong> in section<br />
Comparison of Business and Culture between Germany/Switzerland and <strong>China</strong>, later in this<br />
paper.<br />
3.4.1.3 Corporate culture<br />
A business is an organisational entity with its own common and shared values. Characteristics<br />
of a corporate culture are shared values (e.g. ethical values on how to do business, business<br />
ideologies, and ideas of quality, co-operation, tolerance, hierarchy, control, etc.), shared<br />
norms (guidelines, leadership principles, etc.), shared attitudes (attitudes of the employees<br />
towards task, product, colleagues, leadership, company, development, customers, etc.) and<br />
shared artefacts (languages and language rules, behaviour, architecture, conferences and<br />
meetings, parties, rituals and ceremonies, myths and anecdotes, etc.). 123<br />
Just like in the society, sub-cultures can also exist in a company. This could be due to the<br />
different functional, hierarchical, regional, or other affiliations of the members, or due to<br />
differences in their nationalities, sex, age, and other personal characteristics. 124<br />
3.4.2 Comparison of Business and Culture between Germany/Switzerland and<br />
<strong>China</strong><br />
What we are going to discuss in this sec tion should give you a general idea of Chinese<br />
business life and its culture. However, it does not guarantee a procedure without any difficulty<br />
121 Stüdlein, 1997, p. 36.<br />
122 Terpstra/David, 1991, p. 20.<br />
123 Stüdlein, 1997, pp. 38.<br />
124 Stüdlein, 1997, p. 39.<br />
127
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