Business success and corporate culture

Abstract

Purpose – To describe how Town Star Ltd – a leading company in the coal industry in Shanxi Province in China - combines traditional culture with modern management methods. Design/methodology/approach – Outlines the main strands of traditional Chinese thinking and explains the relevance of Confucianism and Taoist philosophy to organizational performance and culture. Illustrates this with a case study that provides examples of a culture-driven management model. Findings – Chinese civilization stretches back 5,000 years. But when the planned economy gave way to an “open door” policy in 1978, there was a drive for wholesale Westernization. Local enterprises adopted Western management ideas, focusing on profit maximization and quantitative management. Three decades of unprecedented change and rapid economic growth followed, until the world economy suffered a major setback in 2008. China recovered comparatively quickly from the global financial crisis, but the experience raised questions about dependence on Western management practices. Instead of regarding Chinese traditions as backward and antiquated, many people have started to ask what traditional culture can contribute to economic development. Practical implications – Illustrates the ways that a “Yin Yang” approach to human resource management can enhance core competitiveness. Originality/value – Draws attention to opportunities for future research into the ways that indigenous firms are developing in China following the global financial crisis in 2008.