CULTURAL AND INSTITUTIONAL DIFFERENCES 1

MAJOR CULTURAL AND INSTITUTIONAL DIFFERENCES SEPARATING USA

AND CHINA

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Date
 CULTURAL AND INSTITUTIONAL DIFFERENCES 2

Table of content

Contents

Abstract..........................................................................................................................................3

Meaning of a Joint Venture..........................................................................................................4

Introduction..................................................................................................................................4

Backgrounds of Amazon and AliExpress....................................................................................5

Cultural Differences Separating USA and China and Their Influence in the Joint Venture 6

Hofstede's Cultural Dimension for USA and China....................................................................6

Trompenaars Cultural Dimension for USA and China..............................................................11

Hall's Theory for Cultural Differences between China and USA..............................................11

Major Institutional Differences between USA And China......................................................12

Mechanisms for Developing Staff...............................................................................................15

Pre-Move Training.....................................................................................................................15

Investing In Knowledge Management.......................................................................................15

Provision of Home and Host Sponsorship.................................................................................15

The Undertaking of Project Alignment Meetings......................................................................15

Role of Expatriate's Cross-Cultural Training..........................................................................16

Recommendations........................................................................................................................17

Conclusion....................................................................................................................................17

Personal Reflection......................................................................................................................17

My Strengths and Weakness.......................................................................................................18

References.....................................................................................................................................20
 CULTURAL AND INSTITUTIONAL DIFFERENCES 3

Abstract

This report aims to critically analyze cultural and institutional differences in establishing

multinational organizations. The analysis entails a critical evaluation of the relevant literature

about the theoretical debate on institutional approach, cross-cultural management, and IHRM. To

research these concepts, the case study of Amazon, the multinational organization, and

AliExpress firm will be the company in this context. The institutional and cultural differences to

be exhaustively discussed in this report include the barriers which will inhibit the strategic

implementation of specific mechanisms and measures such as cross-cultural training by the

parent country. Additionally, the potential obstacles dealing with the formation of multinationals,

such as language barriers and management issues, will be discussed in detail.

Additionally, I will discuss relevant theories such as Hofstede's dimension model and

Trompenaars' cultural dimension model. Besides, I will discuss the role of both countries'

corporate and national corporate and national cultures in creating a new organizational culture of

the international joint venture. Furthermore, I make recommendations regarding the critical

approach to IHRM in matters concerned with recruitment, cross-cultural training, and cross-

cultural communication of international teams will be drawn. Additionally, the report will

incorporate a personal reflection on the process of working in a multinational and multicultural

organization.
 CULTURAL AND INSTITUTIONAL DIFFERENCES 4

Meaning of a Joint Venture

Introduction

A joint venture combines the forces of two entities to develop a single enterprise or a

project through sharing profits and losses. According to Ali (1995), a joint venture can be

equated to a Strategy of direct investment, enabling a business to expand and grow due to

splitting resources and creating innovation. Kogut and Yan (1999) argue that joint venture lays

the foundation for multinational corporations since it offers a platform for global marketing.

Therefore, engagement of joint ventures by organizations contributes to the flourishing of the

business (Beom, 2019). On the other hand, a multinational corporation refers to a business that

owns and controls production rights in two or more countries (Lazarus, 2001). Companies

establishing connections beyond international borders look for new markets, knowledge-seeking,

and resources. Setting boundaries internationally leads to the accessibility of new markets,

network distribution, resource sharing, and risks. However, setting up a joint venture is prone to

some challenges including cultural differences and political differences existing in various

countries. This report will explore the major institutional and cultural differences between USA

and China and how these differences will affect the formation of a joint venture between

Amazon and AliExpress. The discussion will revolve around PESTLE analysis of the two
 CULTURAL AND INSTITUTIONAL DIFFERENCES 5

countries and how this will affect the joint venture between Amazon and AliExpress. Similarly,

do identify the institutional differences separating USA and China, varieties of capitalism

between USA and China will be examined.

Backgrounds of Amazon and AliExpress

The two corporations are electronic trading platforms that enable communication of the

producer and the consumer via the internet. Amazon is a multinational corporation specializing

in e-commerce, cloud computing, and digital streaming and has its headquarters based in Seattle,

Washington, United States. The corporation was developed in 1994 by Jeff Bezos, and the

corporation has considerably contributed to eCommerce development. Hall (2020) believes that

Amazon is a technology-based organization that has made business easier for consumers by

introducing online transactions. The organization has experienced a growth trajectory with sales

amounting to over 300million.

Furthermore, the organization offers a variety of products from various categories.

Amazon has adopted globalization, thus introducing international shopping allowing global

customers to access over 45 million products (Sameh, 2020). The statistics have revealed that

Amazon's net sales in the fourth quarter increased by 9 %, thus escalating revenues (Amazon,

2021). Though there was a slight decrease in sales due to the omicron virus and coronavirus

pandemic, Amazon has continued to expand and experience growth, with a 40% year-over-year

growth recorded (Amazon, 2022). On the other hand, AliExpress is a Chinese-based website

dealing with various products such as clothing, electronic accessories, and sports products.

The company was developed in 2010 by the Alibaba Group to connect a considerable

proportion of producers with their customers globally. Through the development of web-based

technologies and financial technologies, the company has expanded its utility services. As per
 CULTURAL AND INSTITUTIONAL DIFFERENCES 6

2019 statistics, the company had 180 million customers spread globally and 780 million Chinese

customers, thus increasing revenue for the organization (Alibaba, 2020). A comparison of the

performance statistics of the two corporations reveals that they would be perfect partners in a

joint venture. However, the joint venture is bound to cultural differences. There exist cultural

differences between USA and China which influence joint ventures.

Cultural Differences Separating USA and China and Their Influence in the Joint Venture

Hofstede's Cultural Dimension for USA and China

To compare the cultural difference that would influence the formation of a joint venture

between China and the USA, Hofstede's model offers a platform to view. The model is

comprised of power distance, individualism, masculinity, uncertainty, long term orientation and

indulgence (Hofstede Insights, 2022).

China with a score of 80% is a strong inequality culture (Hofstede Insights, 2022).

Consequently, the managers in China have unlimited power and control over their subordinates

making them have unquestioning and submissive attitudes (Hofstede Insights, 2022). The

superior workers in China tend to abuse powers and hence may make subjective and biased

decisions. However, the USA at a score of 40% is less dependent on hierarchy and the goal is the

creation of equality among members of society. As a result of the high-power distance in China,

when there is a need to make decisions, the hierarchical friction cannot permit the subordinate to

participate. When investors from a low power distance meet the high-power distance in China,

misunderstanding will occur since Chinese workers perceive the managers as authority figures

who cannot be questioned and challenged since asking questions in China is treated as

disrespect. Consequently, this will negatively affect the joint venture between Amazon and

AliExpress. An example of power distance massively displayed in factories in China where most
 CULTURAL AND INSTITUTIONAL DIFFERENCES 7

workers endure abuse from senior managers on daily basis. Barboza (2008) notes that some

organizations in China tend to reduce their employees’ wages and withdrawing their health

benefits. The employees are further exposed to severe hazards at work through the use of

dangerous equipment and chemicals all which is turned a blind eye by the Chinese society due to

dishonesty of management. Barboza (2008) further mentions that unfair labour is practised such

as employees having to work 16 hours a day and are paid less than minimum wage in which

some are under the age of 16. This strongly contrast the American culture and norms as this

would be seen as unacceptable as employee voice is extremely important as well as child labor

abuse as specific legal procedures and laws against human rights.

Furthermore, employment law in the USA consists of all rights and obligations between

the employer and employee relationship such as discrimination, wrongful termination, wages,

overtime and workplace safety which are not recognised in the Chinese culture (Findlaw, 2019).

However, this is strongly similar to the UK where employee voice and employment law is valued

and these same laws apply as employees are able to contact their trade union if they feel they are

being treated unfairly or discriminated (Zhang, 2020). Therefore, the Hr managers need to factor

in these considerations for purpose of ensuring successful joint venture between Amazon and

AliExpress.

Kerzner (2009) posits that US company management styles are based on a horizontal

organizational structure which promotes less authoritative structure and allows communications

within an organization to be more effective and fluid which would reflect Amazon as an

American company. On the other hand, there is a pronounced difference with China which

display a more vertical management structure and a distinct superior subordinate relationship

which according to Hofstede (2021) is seen to be more polarized and abuse of power by
 CULTURAL AND INSTITUTIONAL DIFFERENCES 8

superiors is tolerated and seen as a norm within Chinese workplace (Ray, 2011). Therefore, this

strong paper suggests that HR managers would need to strategically think of how they can be

promoting the transfer of knowledge and developing schemes to ensure that knowledge is spread

across the organisation. Additionally, they must ensure new staffs are recruited and they are

aware of the organizational principle. This is due to the fact that Us managers are more task-

oriented rather than boss oriented (Andersen, 2003). China cultural status acknowledges power is

significant and respect is given to those of hierarchy status. This is strongly portrayed in

Hofstede’s cultural dimension study of the comparison of USA and China distance relationship

which can be described as the level in which people are comfortable with influencing upwards

and acceptance of inequality in distribution on power in society.

According to Hong and Engestrom (2004) China favours an organizational hierarchy

structure and decision is also centralised hence produces a difficulty for cross-functional,

horizontal partnerships and participative organization, which is seen to be essential by recent

project management practices. Thus, this strongly emphasizes on how the Chinese organizational

structure may act as a barrier and become a weakness when engaging in a joint venture with

America.

China with a score of 20% is a collectivist culture. In China, the interests of the society

are given priority and individual success is less acknowledged (Hofstede Insights, 2022).

Consequently, collectivist culture is preferential treatment of members of the society such as

family members in vacancies such as employment. As result, poor employment commitment

exists since personal relationships prevail over tasks (Hofstede Insights, 2022). In the USA

however, the score of 91% is a strongly individualistic culture (Hofstede Insights, 2022).

Individual success is highly appreciated and acknowledged. Similarly, it is the responsibility of

 CULTURAL AND INSTITUTIONAL DIFFERENCES 9

individuals to look and cater for their direct families and themselves (Hofstede Insights, 2022).

The collectivist culture in China will negatively affect the joint venture between Amazon and

AliExpress since members of society will be accorded special treatment in employment as

opposed to their merit. In addition, the attitude toward collective success bars individuals from

applying their full potential hence the low performance of the joint venture.

China is a strong restrained society with a score of 24% in the dimension of indulgence

(Hofstede Insights, 2022). Consequently, China is characterized by a lot of cynicism and

pessimism and less emphasis is put on leisure time hence they suppress their gratification for

pleasures (Hofstede Insights, 2022). They believe that society governs their conduct hence

indulging in leisure is unacceptable. The USA on the other hand with a score of 68% in the

indulgence dimension has a relatively weak control on indulgence hence an indulgent society

(Hofstede Insights, 2022). The strict norms in China will negatively affect the joint Venture

between Amazon group and AliExpress as the members of society will shun some of the

products for instance beauty products and jewellery as a means of suppressing their gratification

negatively affecting sales of the company.

In the long-term dimension, China with a score of 87% indicates it’s a strong pragmatic

culture (Hofstede Insights, 2022). Society believes that truth depends on the circumstance,

context and time hence adapt to traditions so easily (Hofstede Insights, 2022). Consequently,

they exhibit a strong tendency to save and invest. On the other hand, the USA with a score of

26% in the long-term dimension indicates it's a very weak pragmatic culture (Hofstede Insights,

2022). The pragmatic culture in China will favour the joint venture formed between Amazon and

AliExpress. The propensity to save and invest and also embracing modern education as a

strategy to prepare for the future favours the joint venture hence it will successfully thrive.
 CULTURAL AND INSTITUTIONAL DIFFERENCES 10

However, the Hofstede cultural dimension has faced criticism stemming from various

aspects. Firstly, according to McSweeney (2002), Hofstede's cultural dimension lacks clarity

since he does not sufficiently differentiate between the concept of practice and perception of

practice. Additionally, McSweeney states that Hofstede failed to locate his notion within a

particular tradition and instead, he treats the notion of practice and perception of practice as if

their properties are uncompetitive and self-evident. Other scholars argue that this model fails to

make an attempt to connect to the recent social science materials. Secondly, according to

McSweeney (2002), Hofstede’s model causes of differences at the organizational level between

practices or perceptions of practices are not solved as practices are not constituted or

comprehendible. Thirdly, Hofstede blatantly disregards research that explicitly critics or rejects

the treatment of levels of culture. Hofstede considers criticism as methodically distinct

(McSweeney, 2002). This strong paper therefore suggests that Hofstede cultural dimension is not

reliable to explain the cultural differences between China and USA which would affect joint

formation between Amazon and AliExpress. The managers therefore must conduct thorough

research on the actual cultural differences between USA and China for a successful joint venture.

Trompenaars Cultural Dimension for USA and China

China with a score of 48% indicates it’s a particularism culture where they believe that

connections and personal relationships trump rules and laws (Scull, 2018). For instance, "GuaXi"

a Chinese term implies that ties and connections are a priority for the people if they want to

accomplish their goals. Consequently, with "GuanXi" people can bend laws and regulations to

suit their needs (Scull, 2018). On the other hand, the USA with a score of 95% indicates it's a

strong Universalists culture (Scull, 2018). People in the USA believe that rules are equally

applied and hence do not depend on personal connections. The particularism culture in China is
 CULTURAL AND INSTITUTIONAL DIFFERENCES 11

likely to negatively affect the joint venture between Amazon and AliExpress since in China;

people are likely to manipulate rules and cheat. Generally, corruption is likely to be high hence

negatively affecting the joint venture between Amazon and AliExpress.

The Trompenaars theory faces criticism from Hofstede who claims that the theory is not

supported by his database and that a detailed analysis at the country level reveals only two

dimensions correlated with his individualism dimension. Other criticism states that this model

does not factor in the influence of personality traits on behaviour. The theory is only concerned

with how the behaviours are determined by the culture in a particular society. Therefore, this

model is not suitable for describing the cultural differences between China and USA since other

characteristics such as education and religion may define culture which can affect the joint

formation between Amazon and AliExpress.

Hall's Theory for Cultural Differences between China and USA

With a score of 100% China is a strong high-context culture. The culture in China is

characterized by an inner locus of control and personal acceptance of failure and non-verbal

communication dominates (Scull, 2018). Additionally, there is a strong bond between families

and strong affiliation with the members of the community. The process of achieving success is

more acknowledged than the product (Scull, 2018). The USA on the other hand with 26%

indicates it's a low-context culture (Hall's cultural factors 2022). Low-context culture is

characterized by verbal communication, a fragile bond between people with less sense of loyalty

(Hall, 1976). In addition, time management is highly appreciated and the product is more

important than the process.

The high-context culture in China is likely to delay the business operations since patience

is required to earn trust before moving forward with any deals in China (Itim International,
 CULTURAL AND INSTITUTIONAL DIFFERENCES 12

2009). Consequently, this will delay the joint venture between Amazon and AliExpress.

However, according to Cardon (2008) Hall was vague in his presentation of the model and

ranked cultural groups rather than national cultures. This criticism implies that this theory is not

sufficient in determining the cultural differences between USA and China since we are dealing

with cultural groups rather than national cultures since the joint venture is between Amazon and

AliExpress which are international entities.

Major Institutional Differences between USA and China

Analysing the institutional differences between various countries, Hall and Soskice's

(2001) varieties of capitalism is essential. Varieties of capitalism are divided into coordinated

market economies and liberal market economies. Further, the coordinated and liberal market

economies are classified into; industrial relations, employee relations, education and training,

inter-company relations, corporate governance and financial markets. According to Unger and

Chan (2015) the Chinese government control over business operations using state corporatist

techniques hence Corporatism economy is prevalent in China. Consequently, the Chinese

government is control of major business activities. On the other hand, USA practices neo-liberal

economic system where there is elimination of price control and deregulation of capital markets

(Ilkben Akansel, 2016). In a corporatism economy, the workers and employers are organized into

industrial and professional corporations serving as organs of political representation. This strong

paper suggests that it will negatively affect the joint formation between Amazon and AliExpress

due to political interference in market sector.

There is a significant difference in the industrial relations between liberal and non-

interventionist market systems and in particular USA and China. The differences can affect the

formation of a joint venture between Amazon and AliExpress. Firstly, in the liberal economy of
 CULTURAL AND INSTITUTIONAL DIFFERENCES 13

the USA, coordination and negotiations of industrial relations are limited to a company level

(Dudovskiy, 2012). In China, however, the industrial relations are party-controlled unions, with

limited influence on the workers. Similarly, the industrial relations are company based,

uncoordinated and wage bargaining is beyond government-stipulated minimum wage standards.

There are urban-rural and segmented labour markets (Hall and Soskice, 2001). Industrial

relations in China will favour the formation of a joint venture between Amazon and AliExpress

since it is likely to be fewer strikes in China due to collective bargaining agreements.

Education and training in China are composed of a relatively high literacy rate but

enrolment decreases in further studies. Consideration is strong on the general skills and

vocational training to fine-tune the skills (Hall and Soskice, 2001). In addition, labour-intensive

sectors are superior (Hall and Soskice, 2001). In the USA however, the training and development

aim at shaping the general skills which have fewer links to employers and industrial technologies

(Dudovskiy, 2012). Consequently, the industrial specific skills in China will favour the

formation of a joint venture between Amazon and AliExpress since IHR will find the workforce

with specific skills related to the industry which can easily be polished and updated.

Employee relations in China can be described as long-term and an employee can stick to

one employer for a longer duration (Hall and Soskice, 2001). However, in the liberal economy of

the USA, employee relations are considered to be deregulated and highly mobile (Dudovskiy,

2012). Setting the joint venture in China will therefore be favourable since the workers are

expected to remain in the same organisation for a longer duration.

Inter-company relations in China are a state dominated hence mandated with setting standards

and managing competition in strategic technological sectors favouring national champions (Hall

and Soskice, 2001). Additionally, foreign dominance is allowed and also opens competition in
 CULTURAL AND INSTITUTIONAL DIFFERENCES 14

export-oriented sectors. In the liberal economies of the USA however, principles of the free

market with little involvement of the third parties dominate (Dudovskiy, 2012). Therefore,

establishing a joint venture in China will be favourable since foreign investment is allowed with

no limitations like in the USA.

The corporate governance and financial markets in China are dominated by government-

owned banks which coexist with financially starved private firms (Hall and Soskice, 2001).

Additional, large-scale foreign direct investment in the technologically advanced sectors is

widespread. In the liberal market economies of the USA however, the corporate governance and

financial markets' major decisions are made by the shareholders of the company (Dudovskiy,

2012). Therefore, by Amazon forming a Joint venture with AliExpress, there is the possibility of

government interference in China. The government in China owns almost all production and

manufacturing rights which will negatively affect the joint venture.

Mechanisms for Developing Staff

Pre-Move Training

Pre-training encompasses training the expatriates to establish; potential challenges,

mechanisms to deal with the challenges, areas of cultural training, overarching goals of the

assignment and local language training (Chien, 2012). Preparing the expatriates is crucial hence

requires training that is well searched and factoring in potential challenges that the employees are

likely to encounter (Expansion, 2020). For instance, in the establishment of the joint venture

between Amazon and AliExpress, China would require a specific tax set up hence it is

imperative to train the expatriates on the tax system that apply in China. However, this is an

expensive venture that may add extra costs to Amazon Company.

 CULTURAL AND INSTITUTIONAL DIFFERENCES 15

Investing In Knowledge Management

For expatriates working in the established joint ventures between Amazon and

AliExpress to perform their assignments efficiently, there is a need for IHR to generate

knowledge and ensure proper dissemination. The lessons significantly boost Amazon's approach

to the global marketplaces. Investing in knowledge significantly reduces mistakes and delays in

the expatriate's assignments (Dai, 2010).

Provision of Home and Host Sponsorship

This can be achieved through emails to manage the remote expatriates working in China

so that they do not feel cut off from their home office (Expansion, 2020). Provision of home and

host sponsorship enables co-management and solving of problems.

The Undertaking of Project Alignment Meetings

The project alignment meeting follows after crucial information about the expatriate

assignment, residency and taxation details have been outlined (Expansion, 2020). The host

manager convenes the meeting with the expatriate to highlight issues such as timelines, goals,

data collection and reporting strategies.

Role of Expatriate's Cross-Cultural Training

According to Black and Mendenhall (1990), pre-departure cross-cultural training is

crucial in guiding the socialization of expatriate managers. A successful expatriate training

program is imperative for IHR managers at Amazon to gain a considerable advantage in the

established joint venture with AliExpress. Cross-cultural training will enable the expatriate to

adapt to living and working in a new environment (Neill, 2008). Therefore, when the IHR of
 CULTURAL AND INSTITUTIONAL DIFFERENCES 16

Amazon subjects the expatriate to cross-cultural training, they will adapt to the environment of

China hence they can work conveniently.

Cross-cultural training is essential in the reduction of culture shock and

miscommunication (Fantini, and Smith 1997). With reduced culture shock, the expatriates can

achieve the goals of the assignment and maintain the core relationships during the assignments

(Neill, 2008). Additionally, the training facilitates the absorption of practical and valuable

information concerning the daily life of the host country and particularly China hence allowing

expatriates to develop intercultural communication skills (Hong and Engestrom, 2004). Training

expatriates about the Chinese culture should encompass the values regarded as important within

Chinese culture and reflected in the historical, political and economic phenomena and an

expression of these values in behaviours.

Recommendations

Based on the findings of this discussion, several recommendations have been suggested,

including;

There is a close link between cross-cultural training and expatriate adjustment and

communication effectiveness. Therefore, for Amazon to enter into a successful joint venture with

AliExpress, it should subject the employees to cross-cultural training to facilitate proper

communication and prepare them to handle new cultures and languages. The first

recommendation is related to cultural differences separating USA and China. This discussion

recommends that both parties should be committed to the process while making an agreement of

the some of the practices that will be applicable to both companies to ensure a successful joint

formation. A joint venture cannot be successful without the input of both parties thus both parties

should remain committed and come-up with a memorandum of understanding. The second
 CULTURAL AND INSTITUTIONAL DIFFERENCES 17

recommendation relates to the institutional differences. The managers should agree on the

management practices that should be adopted to manage the established joint venture hence

avoiding unnecessary conflicts and premature termination of the joint venture. The last

recommendation relates to mechanism of developing staffs whereby, the management should

establish the efficient strategies for transfer of knowledge and help expatriates to adopt to the

new cultures and environments.

Conclusion

The aim of this discussion was to identify the major cultural and institutional differences

separating USA and China which would influence formation of a joint venture between Amazon

and AliExpress. From the findings, there major cultural differences between China and USA and

to establish some of these differences, prominent models of cultural dimension were used.

Firstly, Hofstede cultural dimension was used whereby the dimension such as power distance

indicated that China is a power distance culture. The high power distance in practice in China

believes in reduction of employees’ wages and withdrawal of their health benefits. On the other

hand it was established that USA is a low power distance culture where employees’ voice is

recognised. Forming a joint venture between Amazon and AliExpress in China would affect the

joint formation and thus, the managers should consider strategies for ensuring a successful joint

venture.

It was also identified that companies in USA practice horizontal organizational structure that

allows communication within organization and less authoritative. On the other companies in

China practice vertical management structure where there is distinct superior subordinate

relationship. As a result, power is significant and respect is given to those in hierarchy status.

The vertical management organizational structure in China would act as a barrier to successful
 CULTURAL AND INSTITUTIONAL DIFFERENCES 18

joint venture and thus managers should explore on strategies to ensure a successful joint venture.

However, scholars have faulted the Hofstede model on basis of lack of clarity and failure for

locating notions within a particular tradition. Other notable theories used to depict cultural

difference were Trompenaars cultural dimension where it was established that China is a

particularism culture that believes in ties and connections for success. On the other hand, USA is

Universalists culture. The findings from Halls cultural dimension theory indicated that China is

high-context while USA is low-context culture.

The findings from institution indicated that USA is a neo-liberal economic system culture while

China is a neo-corporatism economic system the role of governments in both countries is

different whereby, in China, the government influences business operations. In USA however,

there is elimination of price controls and deregulation of capital markets. Other notable

institutional differences included industrial relations, role of trade unions and education and

training of employees. The findings depicted some of mechanism of developing staffs as pre-

moving training and investing in knowledge management.

Personal Reflection

I have developed a detailed understanding of the significance of cross-cultural training

and cultural diversity from studying the international HRM module. For instance, through

watching videos, I have gained an in-depth knowledge of the importance of multicultural teams.

In the TED talk, Chimamanda’s roommate was surprised to learn that she articulated and was

eloquent in English despite being an international student from Nigeria. Stereotyping leads to a

wrong perception of a person. I was surprised during 305 HRM seminars to find out that the
 CULTURAL AND INSTITUTIONAL DIFFERENCES 19

Chinese internationals were eloquent in English. I only thought they spoke Chinese only.

However, I have learned and can appreciate other cultures and languages through this module.

Additionally, Hofstede's cultural dimension model confirms the existence of cultural

differences, which in one way or another; influence the formation of joint ventures with different

countries (Hofstede, 2001). I have learned that it is crucial to impart the expatriates with cultural

knowledge through cross-cultural training, enhancing their understanding of different cultures.

Additionally, cross-cultural training informs them on how to relate with the local staff and the

customers. I have gained insights into how to manage global cross-cultural teams and how I may

apply this in my future career as a human resource manager. Finally, this module has helped

shape and fine-tune my communication and listening skills since this was core when working in

multicultural teams. Appropriate communication skills promote group interaction, thus positive

results.

My Strengths and Weakness

Attending lectures and reading the provided materials have enhanced my strengths in

understanding our culture and the various concepts from different from my culture. Through

models suggested by Hofstede, Trompenaars, and Hall, I have mustered a detailed understanding

of applying culture in an organizational setting and how understanding culture would lead to a

successful joint venture. I equate this to measuring my strength since I gained confidence in and

demonstrated exemplary leadership skills while working in groups during seminars. I

accommodated ideas from all members. Thus, I had good listening skills, significantly shaping

my career goals. These skills equipped and prepared me for my future career. However, my

weakness is stereotyping, which I have to root out. I thought Chinese only speaks Chinese; thus,

I was shocked when I learned they speak English fluently.

 CULTURAL AND INSTITUTIONAL DIFFERENCES 20

I have amassed considerable knowledge on how cultural differences and institutional

differences can affect formation of a joint venture. Through Hofstede cultural dimension, I have

learnt about power distance and how it’s different in China and USA. I have learnt that in China,

the managers value vertical management in their organizations while in USA, horizontal

management is common and therefore, forming a joint venture in China would affect the joint

venture as in China workers are mistreated and they are paid low wages. Similarly, I have learnt

about the criticism of Hofstede cultural dimension theory since its lack clarity and disregards

criticism.

Additionally, I faced some challenges in understanding and connecting institutional

aspects of Neo-liberalism and Neo-corporatism to USA and China. It was difficult linking how

these ideologies would affect the two countries from forming a successful joint venture.

However, to overcome these challenges, I enlisted the help of a teacher and requested

clarification that I did not understand.

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