Development of management philosophy for Chinese business environment

Purpose This paper aims to explore how management approaches are adopted in the modern Chinese business environment. Design/methodology/approach A questionnaire survey was conducted among the companies based in Hong Kong with manufacturing processes in China and supplying their products to the global market. The results of the survey are analyzed in conjunction with traditional Chinese philosophy, Malcolm Baldrige National Quality Award Criteria and ISO 9001 requirements. Findings The findings confirm that most companies operating in the capacity of original equipment manufacturer (OEM) suppliers will use ISO 9001 to set up their management systems. With the development of business, the companies will move from OEM to original design manufacturer (ODM), and some of them to original brand manufacturer. The management approach used at the OEM stage is basically ISO 9001; however, more comprehensive management approaches such as MBNQA criteria would be used when the company developed into OEM and particular ODM. In the Chinese business environment, the values of traditional Chinese philosophy are often shared by the senior leaders of the company. Originality/value This paper confirms that different management approaches should be used at different stages of business development. Furthermore, the management approach adopted should reflect the culture of the people concerned. Traditional Chinese philosophy is a rich source of management concepts from which foreign investors in China will be benefited.