The management of culture in Chinese international strategic alliances

This study examines the rationale and consequences of the adoption Of Culture management policies by Chinese parent firms in their international strategic alliances (ISAs). We distinguish between national and corporate culture and examine the perceptions and effects of both constructs. From a sample of 238 Chinese ISAs, using questionnaire data obtained from Chinese partners, we find that (i) a policy of active culture management is more likely to be adopted the more important national and corporate culture differences are perceived to effect ISA outcomes, such as performance, learning and trust; (ii) the perception of culture difference between ISA partners is reduced in firms adopting culture management policies, for the perception of both national and corporate culture differences and (iii) firms adopting culture management policies report a much higher degree of trust at different relationship levels of the ISA compared with firms not adopting these policies - this tends also to be the case for Chinese firms whose foreign partners have adopted culture management policies compared with those whose partners have not.