International Series in Advanced Management Studies Editor-in-chief Alberto Pastore, Sapienza University of Rome, Rome, Italy Series editors Giovanni Battista Dagnino, University of Catania, Catania, Italy Marco Frey, Sant Anna School of Advanced Studies, Pisa, Italy Christian Grönroos, Hanken School of Economics, Helsinki, Finland Michael Haenlein, ESCP Europe, Paris, France Charles F. Hofacker, Florida State University, Tallahassee, FL, USA Anne Huff, Maynooth University, Maynooth, Ireland Morten Huse, BI Norwegian Business School, Oslo, Norway Gennaro Iasevoli, Lumsa University, Rome, Italy Andrea Moretti, University of Udine, Udine, Italy Fabio Musso, University of Urbino, Urbino, Italy Mustafa Ozbilgin, Brunel University London, Uxbridge, UK Paolo Stampacchia, University of Naples Federico II, Naples, Italy Luca Zanderighi, University of Milan, Milan, Italy Assistant editor Michela Matarazzo, Marconi University, Rome, Italy
More information about this series at http://www.springer.com/series/15195
Rubens Pauluzzo Bin Shen Impact of Culture on Management of Foreign SMEs in China 123
Rubens Pauluzzo Department of Economics and Statistics University of Udine Udine Italy Bin Shen Glorious Sun School of Business and Management Donghua University Shanghai China ISSN 2366-8814 ISSN 2366-8822 (electronic) International Series in Advanced Management Studies ISBN 978-3-319-77880-8 ISBN 978-3-319-77881-5 (ebook) https://doi.org/10.1007/978-3-319-77881-5 Library of Congress Control Number: 2018936634 Springer International Publishing AG, part of Springer Nature 2018 This work is subject to copyright. All rights are reserved by the Publisher, whether the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and transmission or information storage and retrieval, electronic adaptation, computer software, or by similar or dissimilar methodology now known or hereafter developed. The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication does not imply, even in the absence of a specific statement, that such names are exempt from the relevant protective laws and regulations and therefore free for general use. The publisher, the authors and the editors are safe to assume that the advice and information in this book are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or the editors give a warranty, express or implied, with respect to the material contained herein or for any errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional claims in published maps and institutional affiliations. Printed on acid-free paper This Springer imprint is published by the registered company Springer International Publishing AG part of Springer Nature The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Contents 1 Introduction... 1 1.1 SMEs in the Global Arena: A Role that Should Not Be Neglected... 1 1.2 China s Economy and the Challenges of the New Normal Phase... 5 1.3 SMEs Internationalization and the Puzzle of China s Cultural Environment... 8 1.4 Structure of the Book... 11 References... 13 2 The Internationalization Processes of SMEs... 17 2.1 Introduction... 17 2.2 The Evolutionary Path of Internationalization... 19 2.3 Internationalization and SMEs... 22 2.4 Barriers to the Internationalization of SMEs... 28 2.5 The Impact of Internationalization on SMEs Performance... 32 2.6 Theoretical Approaches to SMEs Internationalization Processes... 34 2.7 The Born Global Model... 50 References... 53 3 The Impacts of Management on the International Development of SMEs... 69 3.1 Introduction... 69 3.2 The Role of Management in the Internationalization Path of SMEs... 70 3.3 Firm-Specific Resources and Capabilities... 73 3.4 Management Attitude and Perceptions... 74 3.5 Management Characteristics... 75 v
vi Contents 3.6 Objective Managerial Characteristics... 77 3.7 Subjective Managerial Characteristics... 80 References... 84 4 Culture and Its Dimensions: General Implications for Management... 91 4.1 Introduction... 91 4.2 The Concept of Culture and Its Evolution... 93 4.3 Culture and Socio-cultural Systems... 97 4.4 Cultural Dimensions and the Theoretical Approaches to Culture... 99 4.4.1 Edward T. Hall: Hidden Dimension and Silent Language... 102 4.4.2 Florence R. Kluckhohn and Fred L. Strodtbeck: Variations in Value Orientation... 108 4.4.3 Geert H. Hofstede: Merits, Developments, and New Directions... 111 4.4.4 Fons Trompenaars and Charles Hampden-Turner: Riding the Waves of Culture... 115 4.4.5 Shalom H. Schwartz: Basic Values and Culture... 118 4.4.6 The GLOBE Project: Understanding the Relationship Between National Culture, Societal Effectiveness, and Leadership Attributes... 121 4.4.7 Fang s Yin-Yang Perspective on Culture... 125 4.5 Managers and Entrepreneurs in Culturally Diverse Settings... 127 References... 131 5 Chinese Cultural Roots and Their Influence on Managerial Issues... 139 5.1 Introduction... 139 5.2 Cultural Roots of the People s Republic of China... 140 5.3 Key Principles of the Chinese Cultural Environment... 147 5.4 Embracing Paradox in Management... 150 5.5 Rule of Thumb to Manage Cultural Issues in the Chinese Business Environment... 156 References... 159 6 Empirical Analysis... 165 6.1 Introduction... 165 6.2 The Experience of Italian Companies in China... 167 6.3 Managerial Characteristics and Adaptive Capability... 168 6.4 Cultural Intelligence in the International Markets... 169 6.5 Adaptive Capability and SMEs Performance... 171 6.6 Methodology... 174
Contents vii 6.7 Data Sources... 177 6.8 Sample and Site... 180 6.9 Measurement of Constructs... 181 6.10 Quantitative Analysis... 185 6.11 Qualitative Analysis... 195 References... 204 7 Discussion of Research Findings... 215 7.1 Introduction... 215 7.2 Discussion of Quantitative Research Findings... 216 7.2.1 SMEs Managerial Characteristics and Their Adaptive Capability in the Chinese Context... 217 7.2.2 SMEs Cultural Intelligence and Their Adaptive Capability in the Chinese Context... 219 7.2.3 The Moderator Effect of SMEs Cultural Intelligence on Managerial Characteristics... 221 7.2.4 SMEs Adaptive Capability and Its Impact on SMEs Performance in the Chinese Context... 222 7.2.5 The Mediating Effect of Adaptive Capability in the Path to SMEs Performance... 223 7.3 Discussion of Qualitative Research Findings... 225 7.3.1 Managerial Issues... 226 7.3.2 Chinese Cultural Values... 229 7.3.3 SMEs Activities in China... 233 References... 236 8 Conclusion and Directions for Future Research... 241 8.1 Contribution to Theory... 244 8.2 Contribution to Practice... 247 8.3 Contribution to Policy-Makers... 250 8.4 Limitations and Suggestions for Further Research... 252 References... 253