Exploring Cultural Differences in Implementing International Technology Transfer In the Case of Japanese Manufacturing Subsidiaries in Vietnam

Abstract

This study investigates how Japanese management practices are affected by Vietnamese culture through international technology transfer implementation at Japanese manufacturing subsidiaries located in Vietnam. The concept of technology transfer refers to the transfer of cross-cultural production management systems. Utilizing Abo’s framework on Japanese management systems and Hofstede’s theory of cultural dimensions, we applied a qualitative data collection approach, including multiple specific methods—in-depth interviews, group discussions, and observations—to conduct an empirical inquiry at 13 Japanese manufacturing subsidiaries in Vietnam. The obvious effects of Vietnamese culture on the current Japanese management style as it relates to internal work organization and administration were mainly observed in group consciousness, the seniority system, job classification, job rotation, training and education, quality control, and hiring policy. The Collectivism and Power Distance dimensions derived from two contradictory characteristics of Vietnamese culture—its community spirit and autonomy—are the most important aspects of those effects. It is suggested that professionals and expatriates become aware of the cultural challenges and opportunities, decide which managerial elements should be adjusted, and which aspects should be kept through technology transfer, based on a consideration of which cultural differences provide conflicts and which provide benefits. This study also offers insights to help managers flexibly adapt Japanese management to Vietnam’s environment. Keywords: Vietnam, International Technology Transfer Implementation, Cultural Difference, National Culture, Japanese Subsidiaries To cite this document: Nguyen Thi Duc Nguyen and Atsushi Aoyama "Exploring Cultural Differences in Implementing International Technology Transfer In the Case of Japanese Manufacturing Subsidiaries in Vietnam", Contemporary Management Research, Vol.9, No.1, pp.13-34, 2013. Permanent link to this document http://dx.doi.org/10.7903/cmr.10338