Formation of Cultural Competitive Force When Doing Business in China

Abstract

With the globalization of world business, China has become an appealing market for foreign investors. The problem of cross-cultural management arises as the cooperation between China and its culturally different Western partners continues to increase at an unprecedented rate. This paper presents an understanding on the general cultural differences between the west and China by applying the cultural dimensions of Hofstede and Bond. The author points out that the all-round impact of cultural difference over transnational operation of enterprises affects not only the cooperative strategy, but also the operation and management. It is only through cross-culture communication and management that enterprises can establish good reputation and attain success in its operation. Culture is one of the decisive factors for the success of operation. To realize cross-culture effective management, we must consider solving cultural conflict as the key. In the process of the management, we must pay more attention to the influences of cultural difference on the market choice, product service, entrance mode and system cost, and accordingly formulate a correct strategy, ignore and reduce the cultural difference, or adapt and make use of it. As economic globalization is driving cultural globalization, the culture in the multinational corporation will fuse gradually from differences.