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Cultural differences across countries have been more

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Cultural differences across countries have been more apparent recently. For example, Kwon(2012) uses Hofstede's national cultural components to study subnational cultural variation inmainland China. Kwon highlights the differences in subnational cultures between Shenzhen(south China) and Taiyuan (central China). Ma et al. (2013b) link China's inter-countrydisparities to its abroad subsidiaries' outcomes (2013b). Some researchers have questionedthe link between national and subnational cultural differences, especially when foreignmultinational firms operate in China. Although cultural differences exist within and betweennations, a new study focuses on how these differences impact resource allocation forinnovation transfer between sending and receiving subsidiaries in China (Miao et al., 2016).Until recently, little research was done on the impact of cultural variety acrosscountries. More importantly, comparative research between China and other nations mighthelp academics generalise their findings. Academics may use GLOBE (House et al., 2004),
THE PRACTICAL APPLICATION OF CULTURE THEORY8Ingelhart's World Value Survey (1997), and the Schwartz Values Survey (1997) to learn moreabout subnational cultures. As a result, this research may have significant repercussions formultinational corporations' Chinese subsidiaries (Singh et al., 2019).The result is massive political, legal, and regulatory barriers for foreign enterprisesoperating in China. To begin, China is a rapidly evolving market with a poor legal andregulatory framework. Regulation of the environment (He et al., 2016), financial sector(Zhang et al., 2016a), housing and real estate (Glaeser et al. 2017), employment markets(Chang and Cooke, 2015), and digital media content (Zhang et al., 2016) are all changingdramatically (Han 2016). The government's laws and regulations might be confusing at times.Permits and product approvals may be a regular drain on management resources.Local and national political actors may also favour and encourage indigenous firms byexploiting local institutional instability and flux. Chinese domestic economic endeavours togenerate national champions have a long history. (Sutherland, 2003). Asian developmentmodels (especially Japanese and South Korean industrial strategy, with their large keiretsuand chaebol groups) inspired the creation of a "national team" of around 100 of the world'smost powerful and globally competitive firms. China has been on a growth path since theearly 1980s (Guest and Sutherland, 2009). Manufacturing 2025 policies, for example,prioritise ten industries (new advanced information technology, automated machine tools androbotics, aerospace and aeronautical equipment, maritime and high-tech shipping, modernrail-transport equipment, new energy vehicles and equipment, new materials) (including newadvanced information technology, automated machine tools and robotics, aerospace andaeronautical equipment, maritime equipment and high-tech shipping, modern rail-transportequipment, new-energy vehicles and equipment, power equipment, agricultural equipment,new materials, and biopharma and advanced medical products). Industries including electricvehicles and battery technology, semiconductors, solar panels and modules, and wind energyhave taken massive and obvious steps (World Bank & DRC, 2013).

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