Globalization of Chinese Firms: What Happens to Culture?

Child and Marinova’s (2014) framework provides an important conceptual tool to analyze the globalization of Chinese firms by highlighting the Chinese context and the context of the host country. Their framework is defined by two dimensions: political stability and institutional maturity, which needs to be augmented by a cultural dimension. To illustrate this argument, I review the importance of a broadened notion of cultural distance, intercultural competence, and intergroup dynamics in shaping the learning and adaptation, and eventual success of Chinese expatriates and firms in their global expansion. There is a severe lack of research on the culture-related issues confronting Chinese global firms, a priority area for future research.