Abstract
The ability to deal with cross-cultural differences has grown in importance due to the increasing number of Sino-foreign cooperation and the fact that more and more Chinese companies are investing abroad. The present study examines cultural awareness and cognitive cultural intelligence (cognitive CQ) of Chinese undergraduate students. The results show that Chinese undergraduate business students are moderately well culturally aware and they display average cognitive CQ.
Highlights
The increasing diversification of sales, procurement, and labor markets, as well as a continuously diversifying staff structure, create an external and internal diversity for global companies, to which they have to respond adequately
Key to establishing crosscultural Management (CCM) in China lies in a management theory with Chinese characteristics
The increasing international expansion of Chinese companies increases the need for CCM research
Summary
The increasing diversification of sales, procurement, and labor markets, as well as a continuously diversifying staff structure, create an external and internal diversity for global companies, to which they have to respond adequately. Whereas managerial and cultural differences between Chinese and Western corporations do not seem to play a significant role for Chinese investors, a study by the Boston Consulting Group found that they “face major cultural barriers when it comes to integrating a non-Chinese acquisition” and they “lack a deep understanding of customers, competitors, distribution structures, and the regulatory environment in their target markets” (Hemerling et al, 2006, p.16-17). Managers’ ability to cope with cultural differences is seen as an example of a company’s sustainable competitive advantage (Oliver, 1997). The ability to manage cultural differences is seen as an example of a company’s sustainable competitive advantage (Oliver, 1997), and cross-cultural awareness has a positive influence on successful cooperation in multinational teams (satisfaction, effectiveness) (Cramer, 2007)
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