Past research has suggested the influence of familyoriented collectivistic culture on the behavior and performance of traditional Chinese manufacturing firms. However, insufficient empirical research has been conducted to empirically test the influence. More importantly, insufficient research has been conducted to test how the collectivistic culture in Chinese societies would affect the performance of manufacturing firms. This paper addresses these issues by comparing the behaviors and performance of two groups of firms in China, i.e., investment from overseas Chinese firms and investment from nonChinese Western firms, in one of China's fastgrowing manufacturing industries. Interesting differences are found between the overseas Chinese firms and those from other foreign countries. The findings support the influence of societal culture on firms' behavior and performance, but do not support the predictions on performance based on the arguments of cultural distance. This paper concludes with a discussion on implications of the findings for both researchers and practitioners.
The International Journal of Organizational Analysis – Emerald Publishing
Published: Apr 1, 2000