Abstract
The demand to comprehend leadership across the world is becoming necessary and more urgent since the inevitable trend of globalization. In today’s global arena, on the one hand, China has maintained its remarkable economic performance and Chinese culture will have a more powerful influence in the foreseeable future; on the other hand, due to the policy of reform and opening and the economy market, western management theories and practices have flowed into the Chinese market and influencing Chinese companies. Thus Chinese leadership needs to develop more compatible with western leadership, thereby Chinese MNEs become more adaptive and competitive in the current global business environment. Against this background, this paper focuses on Confucian leadership, the most important Chinese leadership shaped by traditional Confucianism for more than 3000 years, and attempts to explore the compatibility of Confucian leadership and transformational leadership. After a thorough case study of Haier Group and its CEO Zhang, Ruimin, the research found that the great success of Haier is due largely to Zhang’s Confucian-transformational leadership, which combines both the wisdom of traditional Chinese Confucianism and the essence of western transformational leadership theory. Therefore, it is demonstrated that Confucian leadership plays a vital role in shaping the management style and performance of Chinese companies, and there can be a high level of compatibility between Confucian leadership and transformational leadership.
Highlights
As the inevitable trend of globalization, especially in business circles, the demands for mutual penetration and understanding among various nations have been driven
With the implementation of the Belt and Road Initiative from 2013, China has maintained its remarkable strength in the world economy. us, it is urgent to develop a deeper understanding of successful Chinese business models and how they differ from those of western [1] through researching Chinese culture and management practices
Conclusion and Implications is paper aims to explore the compatibility between Confucian leadership and transformational leadership in Chinese MNEs. e figures show the findings of my case study
Summary
As the inevitable trend of globalization, especially in business circles, the demands for mutual penetration and understanding among various nations have been driven. Against this background, the need to understand leadership around the world is becoming necessary and more urgent. With the development of Global Economic Integration, an increasing number of Chinese companies have been influenced by the influx of western management theories and practices. Under this tremendous change, Chinese leadership needs to be developed, thereby Chinese MNEs become more adaptive and competitive in the path of Chinese enterprises going global. Tsui et al [2] indicated that interactions between traditional Chinese leadership practices and western leadership views may stimulate new leadership ideas and brew new leadership styles. us, this paper creatively attempts to explore the Confucian-transformational leadership, a new leadership that combines both the wisdom of traditional Chinese Confucianism and the essence of western transformational leadership theory. e aim of this paper is to answer the central research question: is Confucian leadership compatible with transformational leadership in Chinese MNEs? Around the research question, this paper will conduct a case study of Haier Group and demonstrate the findings of the relationship between the leadership of Zhang Ruimin and Haier, and use this typical example to further indicate the Scientific Programming role of Confucian and transformational leadership in shaping and influencing Chinese MNEs
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