Culture, expatriation and performance: case of Chinese multinational enterprises

Abstract

Purpose

The purpose of this paper is to comprehensively explore the dimensions of Chinese culture and further investigate the underlying mechanisms via which the Chinese culture, in various dimensions, affect the overseas performance of Chinese multinational enterprises (CMNE) expatriates. Along with the awakening of China, not only CMNEs but also the Chinese culture have infiltrated the world market. The uniqueness of Chinese culture has attracted considerable attention of a majority of practitioners, while relevant research on how it affects CMNE expatriates’ performance sounds rare. In contrast to domestic employees, the performance of CMNE expatriates is more likely to be influenced by Chinese culture because of the potential cross-border cultural conflicts between the home and host countries. Additionally, the impact of Chinese culture on CMNE expatriates’ performance may vary according to different cultural dimensions.

Design/methodology/approach

Comparative case study is adopted for this research. After sufficient literature review and interviews with human resource (HR) staff, this paper structured the research, and then conducted 30 in-depth interviews with Chinese expatriates from both state-owned enterprises and private-owned enterprises.

Findings

This paper identifies that the Chinese culture do affect CMNE expatriates performance; however, the degree of its effect diversifies according to different cultural dimensions, namely, individual-level culture including Reniqng, Mianzi and social-level culture including power distance, Guanxi, Yinyang, Hexie and collectivism.

Research limitations/implications

A limitation of this study is that the sample is not big enough and empirical tests are needed to validate or refute the model. Nevertheless, due to the fact that it is still during the period of initial study, the conceptual development raised by this paper would help us to gain good insights from these important and unexplored areas of national culture, which is being thought to affect performance in CMNEs.

Practical implications

Through reviewing the relevant literature and deeply analyzing Chinese culture, this paper attempts to help young Chinese MNEs to build up and/or improve performance appraisal method and system according to the unique Chinese culture, and to supply a theoretical support for HR personnel to make related policies for the sake of improving expatriate performance overseas.

Social implications

This paper is the first attempt to dig and explore the whole picture, and refine the dimensions of Chinese culture from individual level and social level. It aims to lay a foundation for the research related to Chinese culture, and to some extent, supply a theoretical support to motivate more researchers to explore more ways to improve the performance of expatriates from young CMNEs.

Originality/value

This paper presents the whole frame of Chinese culture and from an integral Chinese perspective digs the Chinese cultural dimensions from individual level and social level for the first time. According to the social cognitive theory, this paper provides a firm foundation for scholars to understand Chinese culture as well as to analyze the related relationship with performance, and for CMNEs to develop and utilize the effect of national culture to improve the performance of expatriates overseas. So far, the research on Chinese culture and the effect of national culture overseas have not yet been well considered.

Citation

Lin, Z. and Zhao, Z. (2016), "Culture, expatriation and performance: case of Chinese multinational enterprises", Chinese Management Studies, Vol. 10 No. 2, pp. 346-364. https://doi.org/10.1108/CMS-01-2016-0017