How to transition Chinese firms into world-class corporations : organizational and cultural innovations are key

Abstract

Entering the 21st Century, after almost 30 years development of the Chinese economy, several famous Chinese firms have grown to a significant scale and achieved the rudiments of world-class corporations. Following Japanese and Korean corporations, several firms began their globalization and expansion: Lenovo, Haier, Huawei, and TCL. During the short period of Chinese corporations' globalization, however, they have faced various kinds of difficulties and challenges. Starting from case analyses of eight major electronics corporations (including Philips, Motorola, Toshiba, LG, Acer, Lenovo, Huawei, and TCL, corporations in Europe, USA, Japan, Korea, Taiwan of China and mainland China), the thesis expounds the course of their growth from a historical perspective. It uses the approach of comparison, conclusion and deduction to seek common elements of their success and the common issues faced in their development. The case studies are the principal factual basis of the discussion in the thesis. The main text starts from consideration of organizational and cultural innovation and discusses the forms, evolution, and innovation in organizational development.

(cont.) At the same time, I analyze the differences in typical methodology, system, and culture resulting from the differences in national culture in America, Japan, and China. Based on the characteristics of Chinese "Small Groupism" culture, I propose that a solution for Chinese organizational management and cultural innovation is to establish the "Rigid Frame and Flexible Organism," in other words to establish management and cultural bureaucratic organization. In Chapter III, from the perspective of practical application, I explain the methods of diagnosing organizational culture and how effectively to advance innovation in organizational culture. Hereafter, based on the trend and scale analysis of the eight corporations, I draw conclusions as to the common elements in their development as well as guidance for the development and globalization of Chinese electronic corporations. Based on the framework to establish the "Rigid Frame and Flexible Organism", I address in detail recommendations for Chinese firms.