MuddleG-MGT87500-4: CHINA MYTHS, CHINA FACTS 1

China Myths, China Facts

Grant Muddle

California Southern University

MGT 87500

15 March, 2018

Dr. Stephanie Hoon

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China Myths, China Facts

Introduction

The global economy has created an avenue for the establishment of companies in foreign

countries, and also the employment of foreign managers in foreign companies (Adler &

Gundersen, 2008). Of course, this brings together diverse cultures that are expected to work in

tandem to achieve the expected business goals and objectives in the international market.

However, the problem that exists in the global economy is the cultural assumptions that people

have towards other countries. The stereotypes and attitudes that people have towards foreigners

and their culture can easily cause cultural friction and affect the management of foreign

assignments (Adler & Gundersen, 2008). For example, in the case study, “China Myths, China

Facts”, it is found that there are many myths labeled against the Chinese business culture. The

Chinese business culture is very distinctive, but foreigners assume that it is very different. It is

these stereotypes that make foreign business assignments in China hard to manage or make it

difficult for Chinese managers working in foreign countries to effectively manage the locals.

According to the case study, myths labeled against the Chinese business culture include:

collectivism, long-term deliberation, and risk aversion. Contrary to what foreigners believe, the

Chinese business culture is based on: individualism, real-time reaction, and risk tolerance.

Therefore, it is pivotal to address the China myths addressed above and present the facts as they

are, in order to correct the cultural misalignments that exist between the Chinese and other

foreign cultures. Presenting China’s cultural reality, and eradicating the myths, is imperative in

effective management of foreign assignments.

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Analysis

The case, “China Myths, China Facts” is a clear testament that the foreign business

culture is filled with stereotypes and attitudes that present a misalignment of individual cultures.

The first myth about the Chinese business culture is that the Chinese people practice

collectivism, as opposed to individualism. However, the reality is that the Chinese are

individualistic. From a historical point of view, China believed in collectivism, but that has

drastically changed over the years, and this is attributed to the suppression of citizens for many

years. Other factors fueling the cultural change include: massive rural-urban migration, Cultural

Revolution, and the one-child policy. As a result of the cultural shift, the Chinese business

culture is no longer based on collectivism, but on individualism. Chinese managers argue that

they are always eager to move forward to address personal interests rather than having to wait for

collective interests. Western countries are often viewed as more individualistic, but China is also

among the pack, and this is evidenced in the management of Chinese companies. Thus, the myth

that China upholds a collectivism model is not based on facts, given that Chinese companies

have been practicing individualistic tendencies in their operations (Punnett, 2013). Nevertheless,

it should be noted that the Chinese people are good when it comes to teamwork and, also,

decisions are made in groups (Punnett, 2013).

The second myth is that the Chinese business culture is operated on long-term

deliberation. Conversely, real-time reaction is the model that is often utilized in Chinese

companies. The case study indicated that there is a big difference between China and the West

when it comes to the speed of executing decisions. The case study results indicate that in China,

managers do not necessarily focus on the future, but on the now. While the Western countries

spent a lot of time deliberating on the future and, perhaps, getting it wrong, Chinese managers
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are usually concerned about how to capture the gains of the moment. The aspect of real-time

reaction calls for managers to be very flexible and dynamic in order to handle the pressure of

real-time adjustments (Konopaske & Ivancevich, 2004). Contrary to the commonly-held belief

that Chinese businesses invest in long-term deliberations, they are more concerned with the

perfect execution of their plans and decisions, even if it means adjusting logistics abruptly. The

responses from the case study indicated that logistics in Chinese companies are effectively

executed in real-time reaction, contrary to the notion that they are long-term deliberators. Unlike

popular belief, Chinese managers are not programmed to dwell too much on future forecasts, if

they can work out meaningful gains at the present moment.

The third myth says that the Chinese people are into risk aversion. In other words, the

stereotype labeled against the Chinese business culture is that managers take time to deliberate

on a venture or project before rolling it out. The myth suggests that the Chinese take projects

with a lot of caution that goes into a lot of deliberations, debate and analysis. In reality, this is

typical for Western countries but not in China. The case study results show that in the West,

business managers debate issues more than once and conduct in-depth analyses of the same

before starting a venture. On the contrary, Chinese managers move with haste once the decision

to start a project is approved. Risk-taking ventures are usually associated with growth (McShane

& Young, 2010). In other words, in order to grow, there has to be a bit of risk involved. Chinese

business managers are risk tolerant, thus encouraging them to move quickly when an opportunity

arises. The exponential growth in China’s economy is an explanation of the level of risk

tolerance in its business environment. Therefore, it is worth noting that the business culture in

China thrives in risk tolerance and not risk aversion as many people assume.
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Solutions to the Problem

It is extremely important to develop action points and plans that will be used to solve the

problem presented above. The assumptions against the Chinese business culture does not present

its true picture, thus affecting the capacity of managers spearhead foreign assignments

effectively. The case study, China Myths, China Facts, has, definitely, challenged the

assumptions against the Chinese business culture. The views that foreigners have towards the

Chinese business culture are simply not true. For this reason, feasible action points and plans are

required to be developed to assist in addressing the problem, and creating a culturally intelligent

international business environment.

Cultural intelligence plays an important role in helping expatriates relate and work well

in foreign cultures. Developing cultural intelligence is an instrumental action point since it

enables expatriates to develop an awareness of themselves and the foreigners they interact with

(Mitchell, 2014). With cultural intelligence, it will be possible for people from other countries,

especially the West, to have a true and candid image and understanding of the Chinese. For

example, instead of seeing Chinese managers as being long-term deliberators, they will view

them as real-time operators. As a result, they will not be surprised when Chinese managers make

sudden changes to logistical operations because they will already have the knowledge and

understanding of how they operate. Cultural intelligence takes away any stereotypes that people

have towards a particular culture (Earley & Mosakowski, 2014). Without cultural intelligence, it

is difficult for foreign managers to effectively manage because they lack the skills to interact

with people. Therefore, it will help a lot if cultural intelligence became a priority for companies

and people seeking to work with the Chinese because it will help ease the quality of cross-

cultural interaction.
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When taking a business trip to China, it’s valuable to adjust your behavior to fit in with

the Chinese business culture. Without this, the business trip might not achieve the goals and

objectives set. Behavioral adjustment plays a primary role in securing good interactions with the

host culture (Francesco & Gold, 2005). The first and foremost thing to do is to acknowledge

being in a foreign business environment and appreciating the culture. This means not exhibiting

a Western mentality that could easily fuel stereotyping but, instead, demonstrating the

willingness to adopt the new culture. Additionally, it is not enough to know the culture of China.

There is a need for one to go an extra mile by behaving in a way that shows that he or she is in

the Chinese world. The actions of an expatriate should prove that he or she has entered a

different cultural setting (Francesco & Gold, 2005). For example, it will be imperative to allow

the Chinese business associates the liberty to express their risk tolerance behavior without

judging them because that is the way they operate. So, it is of a greater essence to adjust behavior

accordingly when going on a foreign business trip to China for effective cultural interaction.

It is also valuable for Chinese managers working in Chinese-owned firms in the United

States to adjust accordingly for them to manage Americans. There is a rapid increase in the

number of Chinese firms in the U.S. (Francesco & Gold, 2005). So it would be essential if the

Chinese managers took the necessary steps to adjust their cultural inclinations.

One of the adjustments needed is acknowledging the importance of forecasting and

building a vision for the future. Americans thrive in developing strong building blocks that can

sustain their businesses for the future (Adachi, 2010). Thus, the Chinese manager needs to work

collaboratively with his American counterparts in establishing a clear direction for the company.

Moreover, it is fundamental for Chinese managers to appreciate that Americans like to

assess the viability of ventures and their levels of sustainability before venturing into it. This
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means that they are likely to take time deliberating on it, which is contrary to what the Chinese

believe. For this reason, it is important for the Chinese managers to participate in the process and

decision-making without showing frustration.

Justification

The various courses of action are important in solving the problem of cultural

misalignments and conflicts that lead to ineffective management of foreign business

assignments. The myths labeled upon China are a major setback in the success of foreign

business assignments involving the Chinese business culture. The following are the reasons why

the courses of action are viable and fit the case problem.

 Cultural intelligence helps in dealing with the cultural differences that arise in an

international business environment. Thus, it will help in enabling foreigners to

understand how the Chinese behave in their business environments.

 Exercising cultural intelligence serves as a principal tool in not only helping to deal with

the differences that arise in multicultural settings, it also helps to manage people

effectively (Mitchell, 2014). So, this course of action is good for the case because it helps

both Chinese managers and foreign managers to manage their companies efficiently.

 Adjusting behavior is a feasible course of action since it shows the appreciation and

respect for foreign culture. This is the starting point for people working together in a

cross-cultural business environment. An expatriate going on a business trip to China will

adjust his or her behavior to prove to the Chinese that he or she is ready to work with

them. Hence, this goes a long way in facilitating effective working relations on a cross-

cultural plane.
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 Another justification for the need to adjust behavior is that it helps to embrace diversity.

Diversity is a major characteristic of global business relations, therefore making it very

important for business managers to adjust their behaviors when dealing with cross-

cultural business relations. This course of action is vital in eradicating the attitudes and

stereotypes that label certain cultures wrongly.

Summary

The case “China Myths, China Facts” is an example of the many assumptions that are

held towards particular cultures in the international business culture. These assumptions spell

problems that affect the efficiency of business management from a cross-cultural perspective.

These stereotypes present the wrong picture of a particular business culture and, as a result,

affect working relations. It is, therefore, pertinent for stakeholders in the international business

world to develop cultural intelligence and adjust their behavior to fit their areas of operation.

This goes a long way in solving the problems that exist in the global business world. The case of

“China Myths, China Facts” should serve as an example that without the right awareness of

cross-cultural business relations, it is difficult to interact and manage people well in foreign

business assignments.
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References
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Adler, N. J., & Gundersen, A. (2008). International dimensions of organizational behavior.

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Earley, P.C. & Mosakowski, Q.E. (2014). Cultural Intelligence. Harvard Business Review.
Retrieved from: https://hbr.org/2004/10/cultural-intelligence Web 21 Feb 2018

Francesco, A. M., & Gold, B. A. (2005). International organizational behavior: text, cases, and
skills. Upper Saddle River, NJ: Pearson/Prentice Hall.

Mitchell, R. (2014). Cultural intelligence: Everybody needs it. The Harvard Gazette.
Retrieved from: https://news.harvard.edu/gazette/story/2014/11/cultural-intelligence-
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McShane, S. L., & Young, V. G. (2010). Organizational behavior: emerging knowledge and
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