Power distance in cross-cultural environment: Observations from two Chinese companies in Europe

Shuo Wang; Pasi Fränti

doi:10.3934/steme.2022012

Article Contents

2022, Volume 2, Issue 3: 173-196. Doi: 10.3934/steme.2022012 open access

This issue Previous Article Next Article Effects of COVID-19 pandemic on education and society

Power distance in cross-cultural environment: Observations from two Chinese companies in Europe

Shuo Wang^1, and
Pasi Fränti^2, ,

1.
Department of Social Sciences, University of Eastern Finland, Joensuu, Finland; shuowangpsy@gmail.com
2.
School of Computing, University of Eastern Finland, Joensuu, Finland; franti@cs.ue.fi

* Correspondence: Email: franti@cs.uef.fi
* Correspondence: Email: franti@cs.uef.fi

Academic Editor: Ergun Gide

Received: May 2022

Accepted: June 30, 2022

Published: September 2022

Abstract Full Text(HTML) Figure(4) / Table(1) Related Papers Cited by

Abstract

Cultural differences have a strong influence on the work and study climate in cross-cultural environment. A difference in power distance has been shown to be a major factor in decreasing motivation, especially when the superior follows a hierarchical leadership style but the subordinates expect equality. This can lead to high turnover rates in companies and low learning outcomes in schools if not taken into consideration. In this paper, we use examples to demonstrate how the problems appeared in two case studies of Chinese companies operating in Europe. The findings have been categorized into five themes: hierarchy, authority, closed communication, promotion, and unequal treatment.

Keywords:

Citation:

FullText(HTML)

Figure 1. Power-distance indexes for a few selected countries, including those for the two cases studies (Norway and Germany), the home of the authors (Finland) and the country of the host company (China)

Download: Full-size image PowerPoint slide

Figure 2. Core of family in Western and in Chinese cultures. In Western culture, the core family is based on one's own choice (marriage), whereas, in Chinese culture, it is something into which you are born. One cannot choose his or her parents, brothers and sisters

Download: Full-size image PowerPoint slide

Figure 3. Lack of discussion was also interpreted as a lack of interest; as an example, the colleague was only interested in talking about the forthcoming lunch, rather than discussing the matter in more detail

Download: Full-size image PowerPoint slide

Figure 4. Guanxi in Chinese society (left) can be described as a circle with multiple layers; the inner circle is trusted most and the outermost layers least. One KBB employer also described the company organization as a layered circle (right), wherein locals form the innermost circle

Download: Full-size image PowerPoint slide

Table 1. Characteristics of all participants interviewed during the data collection. Some of them may not have been cited in this paper, but they all influenced the theoretical conclusions drawn; their interview data may be found elsewhere

Name	Nationality	Age	Gender	Position	Education	Work years	Company
Moss	Scandinavia	49	M	Senior manager	≥Bachelor	< 1	CDD
Johan	Scandinavia	54	M	Senior manager	≥Bachelor	2–3	CDD
Erik	Scandinavia		M	Formal CEO	≥Bachelor		CDD
Temper	Scand.-Israeli	47	M	Senior manager	≥Bachelor	1–2	CDD
Cosimo	Scand.-Italy	45	M	Key account	Bachelor	3–5	CDD
Li Chi	Scand.-China	44	F	Administrator	Master		CDD
Antonie	France	38	M	Vice CEO	≥Bachelor	2–3	CDD
Ahmad	Brunei	37	M	Junior manager	≥Bachelor	1–2	CDD
Katya	Azerbaijan	39	F	Chief accountant	Master	1–2	CDD
Ping Pong	China	38	M	CEO	Bachelor	> 5	CDD
Wu Wei	China	38	M	Project manager	≥Bachelor	> 5	CDD
Xu	China	40	M	Account manager	Master	> 5	CDD
Jia Ke	China	38	M	Senior manager	Bachelor	> 5	CDD
Gao	China	29	M	Junior manager	Master	< 1	CDD
Si Si	China	40	F	Senior manager	Bachelor	> 5	CDD
Mr. Schneider	Germany	50	M	Engineer	≥Bachelor		KBB
Mr. Hoffmann	Germany	56	M	Sales	≥Bachelor	2–3	KBB
Mr. Wolf	Germany	30	M	Engineer	≥Bachelor	< 1	KBB
Mr. Hunter	Germany	50	M	Senior manager	≥Bachelor	2	KBB
Mr. Fischer	Germany	60	M	Trainer	≥Bachelor	1–2	KBB
Mr. Weber	Germany	40	M	Senior manager	≥Bachelor		KBB
Mr. Müller	Germany	60	M	Senior manager	≥Bachelor	1–2	KBB
Clara	Germany	38	F	Senior manager	≥Bachelor	1–2	KBB
Claudia	Germany	25	F	Secretary	Master		KBB
Sabine	Germany	40	F	Sales	≥Bachelor		KBB
Benjamin	Belgian	50	M	CEO	≥Bachelor	< 1	KBB
Daria	Russia	40	F	Sales	≥Bachelor		KBB
Mr. Wang	Germany-China		M	Cross-cultural trainer	≥Bachelor		KBB
Mr. Miao	China	61	M	Group CEO	≥Bachelor	≥20	KBB
Mr. King	China	50	M	Formal CEO	≥Bachelor	≥20	KBB
Mr. Da Li	China	20	M	Assistant	≥Bachelor		KBB
Mr. Hui Hai	China		M	Vice CEO	≥Bachelor		KBB
Mr. Zhao	China	40	M	Team leader	Doctor	1–2	KBB
Li Jie	China	28	F	HR assistant	Bachelor	1–2	KBB

| Show Table

DownLoad: CSV

Related Papers

Cited by

References

[1]	Hofstede, G., Culture's consequences : international differences in work-related values, Vol. 5., 1980, Beverly Hills, Calif.: SAGE.
[2]	Hofstede, G., Hofstede, G.J. and Minkov, M., Cultures and organizations: software of the mind: intercultural cooperation and its importance for survival (3rd ed.), 2010. New York: McGraw-Hill.
[3]	X. Huang, E. Van de Vliert and G. Van der Vegt, Breaking the silence culture: Stimulation of participation and employee opinion withholding cross-nationally, Management and Organization Review, 1 (2005), 459-482. doi: 10.1111/j.1740-8784.2005.00023.x.
[4]	Gerritsen D., Zimmerman J., Ogan A., Exploring power distance, classroom activity, and the international classroom through personal informatics. Int. Conf. on Artificial Intelligence in Education (AIED), 2015: 11‒20.
[5]	J. Hu, B. Erdogan, K. Jiang, T.N. Bauer and S. Liu, Leader humility and team creativity: The role of team information sharing, psychological safety, and power distance, Journal of Applied Psychology, 103 (2018), 313-323. doi: 10.1037/apl0000277.
[6]	F.L. Cooke, Enterprise culture management in China: Insiders' perspective, Management and organization review, 4 (2008), 291-314. doi: 10.1111/j.1740-8784.2008.00101.x.
[7]	Z. Aycan, Paternalistic leadership, Wiley encyclopedia of management, (2015), 1-2. doi: 10.1002/9781118785317.weom060156.
[8]	S. Wang and P. Fränti, How power distance affect motivation in cross-cultural environment: findings from Chinese companies in Europe, STEM Education, 2 (2022), 96. doi: 10.3934/steme.2022008.
[9]	Wang, S., Your next boss is Chinese: How European employees perceive organizational cultures in Chinese multinational companies, Dissertation in Education, Humanities, and Theology, No 105, University of Eastern Finland, 2017.
[10]	H. de Vries, Space for STEAM: New creativity challenge in education, Frontiers in psychology, 12 (2021), 812. doi: 10.3389/fpsyg.2021.586318.
[11]	Z. Wenxin and W. Yue, An Analysis on Sino-UK Cultural Differences in Education from the Perspective of Hofstede's Cultural Dimensions Theory (A Case Study of Are Our Kids Tough Enough?), Journal on Education, 4 (2022), 373-384. doi: 10.31004/joe.v4i2.438.
[12]	L. Hickman and A. Mesut, Exploring virtual reality for developing soft-skills in STEM education, IEEE World Engineering Education Forum (WEEF), (2017), 461-465. doi: 10.1109/WEEF.2017.8467037.
[13]	M. Schraeder and D.R. Self, Enhancing the success of mergers and acquisitions: an organizational culture perspective, Management Decision, 41 (2003), 511-522. doi: 10.1108/00251740310479359.
[14]	Väisänen, K., Jääskeläinen, J.K., Kortesuo, K., Exit-opas yrittäjälle: näin trimmaat yrityksesi myyntikuntooni[Exit Guide for the Entrepreneur: Here's how to trim your business to sales], Alma Talent 2020. (in Finnish)
[15]	Consultancy.uk, Culture issues derail M & A transactions at an alarming rate.[Web page; Accessed 10-May 2022]. Retrieved from: https://www.consultancy.uk/news/19490/culture-issues-derail-ma-transactions-at-an-alarming-rate
[16]	Eriksson, P. and Kovalainen, A., Qualitative methods in business research. Los Angeles, Calif.; London: SAGE, 2008. https://doi.org/10.4135/9780857028044
[17]	Van Maanen, J., Tales of the field : on writing ethnography (2nd ed.). Chicago: University of Chicago Press, 2011. https://doi.org/10.7208/chicago/9780226849638.001.0001
[18]	J. Georgesen and M.J. Harris, Holding onto power: Effects of powerholders' positional instability and expectancies on interactions with subordinates, European Journal of Social Psychology, 36 (2006), 451. doi: 10.1002/ejsp.352.
[19]	B.J. Napier and G.R. Ferris, Distance in organizations, Human Resource Management Review, 3 (1993), 321. doi: 10.1016/1053-4822(93)90004-N.
[20]	F.J. Milliken, E.W. Morrison and P.F. Hewlin, An exploratory study of employee silence: Issues that employees don't communicate upward and why, Journal of Management Studies, 40 (2003), 1453. doi: 10.1111/1467-6486.00387.
[21]	Fei, X., 乡土中国修订版[Rural China]: Shanghai: Shanghai people's publishing house, 2013.