The Organization and Management of Chinese Transnational Enterprises in South China

Abstract

As a result of the “third wave” of global investment penetration, the Chinese transnational economy has developed in South China since the late 1980s. Overseas Chinese have in particular played a crucial role in the establishment of Chinese transnational enterprises (TNEs). The article examines the relationships between Chinese and Chinese TNEs based on the author’s field study in Guangdong and Fujian in April 1997, and concludes that the Chinese TNEs have formed their own characteristics in organization and management styles. Chinese TNEs are organized differently from the Western TNEs mainly in terms of the cultural values between transnational investors and their subsidiaries; the distance between mother and daughter firms; and the size of invested capital. Western advanced technology and technical skills have had an influence on the methods of Chinese management, but have been limited to technical aspects