A Study On The Choice Of Cross - Cultural Integration Model Of Multinational Corporations In China

The multinational corporations must face the impact of cultural differences in their survival and development in China, which will cause a huge obstacles and resistance to the multinational corporations operating in China. To eliminate or reduce the negative impact of these cultural differences, there is the need for cross-cultural integration. Cross-cultural integration first needs to identify and recognize differences, clear the particularity and inimitability of different culture, and then making use of the favorable factors in the differences, better adapt to different culture,and therefore create value.Since Nahavandi and Malekzadeh introduced “The Theory of Immigrant Culture Adaptation” put forward by Berry into the field of management, which includes the adaptation models of integration, assimilation, segregation and deculturation, researches home and abroad have put forward different models of cross-cultural adaptation, as well as to the model selection and application of these specific conditions and environment. But for China’s cultural soil, which model has more suitability, the current study has not formed a unified or authoritative conclusion yet. Based on “The Theory of Immigrant Culture Adaptation” put forward by Berry and the factual situation of the multinational corporation and the characteristic of Chinese culture, the dissertation put forward the adaptation models of integration, assimilation, segregation and transplantation to be selected by the multinational corporation in China.China has a long history and special cultural environment, in which "Guanxi" and its derivative "Guanxi capital" are specific elements recognized by scholars at home and abroad. The unique elements not only influence the choice of cross cultural adaptation models of multinational corporations, also determines their operation and development in China. "Guanxi" values itself for its capability of forming a "Guanxi capital" for the enterprise to create or add value. It has been found in the literature review that the value of heterogeneity of the Guanxi capital has caused the attention of scholars. At present, the heterogeneity of the Guanxi capital has been mentioned in the domestic and foreign research, such as the government,(including the central government and local government), the consumer(clients), suppliers, cooperative partners(competitors), enterprise employees, the parent company, research institutions, on the basis of which the Guanxi capital is made is in favor of the operation and development of multinational corporations in China.In the analysis of the factors influencing the choice of cross-cultural adaptation model, in addition to the strategic target, cultural forces, the matching of cultures and cultural recognition,(host country’s) government, consumers(clients), cooperative partners, the Guanxi between the employees and the corporation, the Guanxi between the mother corporation and the subsidiary, industry and the value oritation of the corporate culture are also the important factors that affect the enterprise’s cross-cultural adaptation, and these factors are the most important dimensions which reveal the heterogeneity of Guanxi capital of multinational corporations in China. Cross-cultural adaptation mode and Guanxi capital construction intersect in the respects of the several factors. Whether the Guanxi capital can be formed in the several dimensions has become the criteria for the multinational corporations in China to make a good choice of the cross-cultural adaptation modes.The core content of cross cultural adaptation models derived from the theory of immigrant culture adaptation, and one of the ultimate goals of cross-cultural adaptation is to acquire the Guanxi capital, therefore, this whole research is based on the two theories, that is, the theory of immigrant cultural adaptation and the theory of Guanxi capital. With the reference of previous research achievements, the disseretation, based on four different kinds of adaptation models, integaration, assimilation, sagregation and transplantation and the Guanxi capital in three main levels(external, internal and system) which consist of six key factors(the host country’s(China’s) government, consumers(clients), cooperative partner(competitors), enterprise employees, the Guanxi of enterprise and employees, the Guanxi of parent and subsidiary), puts forward 24 research proposition. The dissertation adopted four American multinational corporations in China which are world famous and influential in their industry with different cross-cultural adaptation models, that is, Hewlett-Packard Co., Ltd.(China)(IT infrastructure and computer hardware), Google China(Internet), Motorola(China) Electronics co., LTD.(mobile phones and wireless communications equipment), Microsoft(China) Company(computer software) as a case study of sample, test the situation of Guanxi capital in three levels of six dimensions under different cross-cultural adaptation models.In order to ensure the accuracy of case study, this research has carried on the interview to five multinational corporations in China, so that supply the hypothetical propositions, especially those false or not being verified with supplementary argument.Based on the literature review, case study and interview research, the following research conclusions are reached:(1) There are four adaptation models for the multinational corporations in China to make a choice, integration, assimilation, segregation and transplantation;(2) The choice of the adaptation models will be affected by the factors including the government, consumers(clients), cooperative partner(competitors), enterprise employees, parent corporation;(3) “Guanxi” is a special element of Chinese culture, and Guanxi capital can help create value for multinational corporations in China. The value of Guanxi capital lies in heterogeneity, which presents itself in the dimensions of the Chinese government, consumers(clients), cooperative partner(competitors), enterprise employees, the Guanxi between the employees and the corporation, the Guanxi between the mother corporation and the subsidiary. Whether Guanxi capital can be formed in the above-mentioned six dimensions is the reference and criteria of the multinational corporations in China to make s choice among the four adaptation models.(4) Models of integration and assimilation are helpful for the multinational corporations in China to form Guanxi capital in the respect of Chinese government, consumers(clients), cooperative partner(competitors), enterprise employees, enterprise and staff, parent and subsidiary, while model of segregation is unhelpful for the multinational corporations in China to form Guanxi capital in the respect of Chinese government, consumers(clients), cooperative partner(competitors), enterprise employees, enterprise and staff, parent and subsidiary, model of transplantation is helpful for the multinational corporations in China to form Guanxi capital in the respect of the Chinese government, consumers(clients), cooperative partner(competitors), enterprise employees, but in the respect of enterprise and staff, parent and subsidiary, the valid conclusion of whether Guanxi capital can be formed has not been reached.(5) As for each dimension of the six, the multinational corporations in China can choose a different one respectively to form Guanxi capital;(6) A balance should be drawn between the two ways of the formation of Guanxi capital of the multinational corporations in China, the ways of Guanxi management and contract management, to ensure the sustainability of competitive advantage out of Guanxi capital.Based on the research, this paper puts forward six pieces of management implication, include:(1) it is preferential to choose mode of cross-cultural integration which is helpful for multinational corporations in China to form sustainable Guanxi capital;(2) it is preferential to choose mode of cross-cultural integration which is helpful for multinational corporations in China to form heterogeneous Guanxi capital;(3) the factors influencing the choice of cross-cultural integration mode of multinational corporations in China should not be of the same importance in forming Guanxi capital;(4) for the different factors, multinational corporations in China can choose different mode of cross-cultural integration respectively to form Guanxi capital;(5) with the goal of forming the sustainable Guanxi capital, it is suggested to choose the dynamic cross-cultural integration mode,(6) with the contents of forming heterogeneous Guanxi capital based on trust, it is suggested to choose diversely cross-cultural integration modes.In addition, two aspects of the regional factors and the subject in Guanxi capital in cross-cultural adaptation models in this research still have the room to improve.Innovation of this research lies in the following four aspects: Guanxi, as a key factor, is embed in cross-cultural adaptation mode selection in multinational corporations in China, to broaden the research horizon; Based on the theories of “The Theory of Immigrant Culture Adaptation” and “The Theory of Guanxi Capital”, the dissertation sets up the whole theoretical framework of this research; A theoretical model composed of four kinds of adaptation models and 24 hypothetical propositions is therefore put forward; And a valuable research conclusion and some suggestions have been achieved on the basis of the case study and depth interview research. Key words: multinational corporations(MNCs), cross-cultural adaptation models;...