THE CULTURAL CHALLENGES OF MNCS INVESTING IN CHINA

THE CULTURAL CHALLENGES OF MNCS INVESTING IN CHINA IN THE TWENTY-FIRST CENTURY Universal approaches of management believe that "few major differences exist among managers from different social and cultural backgrounds and that management theories and practices can be easily transferred from one culture to another" (Chen, 2004, p1). This approach suggests that the corporate culture and management systems that secure financial success in a company's home country will guarantee success in other countries. This assumption is …

…the relative infancy of the capitalist mentality in China. The four type of enterprise in China were explained. Then, the essay examined the difficulties that MNCs confront when they begin WOS or JVs in China. These challenges illustrate the inherently different business climate in China. As a new economic era dawns in China, the MNCs that most successfully adopt their domestic management models to the new cultural climate in China will reap the greatest rewards.