Graduate Thesis Or Dissertation
 

Traditions and changes in Chinese business organizations under the policy of economic reform

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  • One of the motives of China's Economic Reform is to bring Western management techniques to China to further economic development. The miraculous success of the Special Economic Zone (SEZ) in Shenzhen, Guangdong has attracted many foreign investors who gladly bring their management expertise. This thesis looks at small, medium and large Chinese business organizations in SEZ and non-SEZ locations and examines their traditions and changes under China's economic reform policy. I conducted semistructured interviews with managers in small and medium-size private enterprises in Shenzhen and Xiamen SEZs and used unstructured interviews with managers in large state-owned enterprises in Tianjin, a non-SEZ. Under China's economic reform policy, I found Chinese business enterprises have undergone drastic changes in the past few years. I found small family business organizations deeply ingrained in and still very much retaining their Chinese cultural characteristics familism, paternalism, and personalism. I found medium-size organizations in the SEZs have changed the most. Medium-size enterprises were in transition, partially retaining Chinese values and partially adopting Western values. I found large state-owned enterprises had undergone a significant reduction in paternalism, but substantially retained the value of personalism. No matter what the changes, I found that personalism was pervasive among all Chinese organizations. Thus, it remained unchanged under the policy of economic reform. As China is opening up, I found economic reform driven by medium-size enterprises because they were most free of cultural and bureaucratic constraints. Thus, they achieved a revolutionary breakthrough. Chinese medium-size enterprises are the types of enterprises that will eventually do the most to modernize the Chinese economy.
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