The cultural transformation of large Chinese enterprises into internationally competitive corporations: case studies of Haier and Huawei

Abstract

The Chinese government has recently introduced a policy requiring all large Chinese business corporations to transform their corporate cultures with the aim of increasing their competitiveness on the international stage. This paper traces the origins of the policy to the outstanding performance of a small number of Chinese firms since the late 1980s, a phenomenon attributed by the CEOs of these firms to effective implementation of cultural values change among their workforces. We give detailed accounts of two such firms, Haier Group and Huawei Technologies, demonstrating how they have utilized cultural management techniques to improve their employees’ performance. We also identify some negative aspects of their approach to cultural management that may impede these firms in their efforts to become truly international corporations.