IDEAS home Printed from https://ideas.repec.org/a/eme/ijsepp/v37y2010i2p101-118.html
   My bibliography  Save this article

FDI and the change of the Chinese culture

Author

Listed:
  • Lu Jiang
  • Qiangbing Chen
  • Yali Liu

Abstract

Purpose - In many cross‐cultural management studies, culture and cultural differences across nations typically are assumed to be constant. The focus is on the impact of culture on other variables, such as the performance of multinational enterprises. However, is it possible that economic globalization results in cultural globalization? If yes, by how much? The purpose of this paper is to provide some evidence through studying the impact of foreign direct investment (FDI) on the Chinese culture. Design/methodology/approach - An observable social indicator to represent each dimension of cultural value is chosen and statistical models are used to test whether FDI has significant impact on these indicators, after controlling for economic development level. Also this paper investigates whether FDI from a different cultural background has different effects on the Chinese culture. Findings - Using data from major Chinese cities, it is found that FDI has significant effects on the degree of future orientation, performance orientation and in‐group collectivism. Also this paper found that FDI from the USA and the UK has a significant and negative effect on the degree of assertiveness; FDI from Japan, and Singapore, and the USA, and the UK has significantly negative effects on the degree of performance orientation; FDI from Japan and Singapore has a significantly positive effect on the degree of in‐group collectivism. Originality/value - Unlike the traditional method of measuring culture values through what people say (interview or survey), this approach relies on what people do. This method helps avoid the measurement distortions caused by self‐deception and impression management problems with survey approach. In addition, this is believed to be the first study to test the impact of FDI on the change of culture values through econometric models.

Suggested Citation

  • Lu Jiang & Qiangbing Chen & Yali Liu, 2010. "FDI and the change of the Chinese culture," International Journal of Social Economics, Emerald Group Publishing Limited, vol. 37(2), pages 101-118, January.
    • Handle: RePEc:eme:ijsepp:v:37:y:2010:i:2:p:101-118
    DOI: 10.1108/03068291011007237
    as

    Download full text from publisher

    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291011007237/full/html?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://www.emerald.com/insight/content/doi/10.1108/03068291011007237/full/pdf?utm_source=repec&utm_medium=feed&utm_campaign=repec
    Download Restriction: Access to full text is restricted to subscribers
    File URL: https://libkey.io/10.1108/03068291011007237?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. David K Tse & Yigang Pan & Kevin Y Au, 1997. "How MNCs Choose Entry Modes and Form Alliances: The China Experience," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 28(4), pages 779-805, December.
    2. Geert Hofstede, 1994. "Management Scientists Are Human," Management Science, INFORMS, vol. 40(1), pages 4-13, January.
    3. Bruce Kogut & Harbir Singh, 1988. "The Effect of National Culture on the Choice of Entry Mode," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 411-432, September.
    4. Hofstede, G., 2006. "What did GLOBE really measure? Researchers' minds versus respondents' minds," Other publications TiSEM 53fc2049-e658-4cff-a440-4, Tilburg University, School of Economics and Management.
    5. David A Ralston & Carolyn P Egri & Sally Stewart & Robert H Terpstra & Yu Kaicheng, 1999. "Doing Business in the 21st Century with the New Generation of Chinese Managers: A Study of Generational Shifts in Work Values in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 30(2), pages 415-427, June.
    6. Yigang Pan, 1996. "Influences on Foreign Equity Ownership Level in Joint Ventures in China," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 27(1), pages 1-26, March.
    7. Elke U. Weber & Christopher Hsee, 1998. "Cross-Cultural Differences in Risk Perception, but Cross-Cultural Similarities in Attitudes Towards Perceived Risk," Management Science, INFORMS, vol. 44(9), pages 1205-1217, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Wei Feng & Yanrui Wu & Yue Fu, 2021. "Dialect Diversity and Foreign Direct Investment in China," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(2), pages 49-72, March.
    2. Hsu, Cathy H.C. & Huang, Songshan (Sam), 2016. "Reconfiguring Chinese cultural values and their tourism implications," Tourism Management, Elsevier, vol. 54(C), pages 230-242.
    3. Manjiang Shi & Yaowen Xie & Qi Cao, 2016. "Spatiotemporal Changes in Rural Settlement Land and Rural Population in the Middle Basin of the Heihe River, China," Sustainability, MDPI, vol. 8(7), pages 1-17, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Pan, Yigang, 2003. "The inflow of foreign direct investment to China: the impact of country-specific factors," Journal of Business Research, Elsevier, vol. 56(10), pages 829-833, October.
    2. Pan, Yigang & Li, Xiaolian, 1998. "Alliance of foreign firms in equity joint ventures in China," International Business Review, Elsevier, vol. 7(4), pages 329-350, August.
    3. Cuypers, I.R.P., 2009. "Essays on equity joint ventures, uncertainty and experience," Other publications TiSEM 8dc79e86-c625-467f-a450-8, Tilburg University, School of Economics and Management.
    4. Shieh, Bih-Lian & Wu, Tzong-Chen, 2012. "Equity-based entry modes of the Greater Chinese Economic Area's foreign direct investments in Vietnam," International Business Review, Elsevier, vol. 21(3), pages 508-517.
    5. Zhi Shen & Francisco Puig & Justin Paul, 2017. "Foreign Market Entry Mode Research: A Review and Research Agenda," The International Trade Journal, Taylor & Francis Journals, vol. 31(5), pages 429-456, October.
    6. Youngok Kim & Sidney J. Gray, 2008. "The impact of entry mode choice on foreign affiliate performance: The case of foreign MNEs in South Korea," Management International Review, Springer, vol. 48(2), pages 165-188, April.
    7. Youngok Kim & Sidney Gray, 2009. "An assessment of alternative empirical measures of cultural distance: Evidence from the Republic of Korea," Asia Pacific Journal of Management, Springer, vol. 26(1), pages 55-74, March.
    8. Walsh, James P. & Wang, ErPing & Xin, Katherine R., 1999. "Same bed, different dreams: working relationships in Sino--American joint ventures," Journal of World Business, Elsevier, vol. 34(1), pages 69-93, April.
    9. Richards, Malika & Yang, Yi, 2007. "Determinants of foreign ownership in international R&D joint ventures: Transaction costs and national culture," Journal of International Management, Elsevier, vol. 13(2), pages 110-130, June.
    10. Erdener Kaynak & Mehmet Demirbag & Ekrem Tatoglu, 2007. "Determinants of ownership-based entry mode choice of MNEs: Evidence from Mongolia," Management International Review, Springer, vol. 47(4), pages 505-530, October.
    11. Lazarova, Mila & Peretz, Hilla & Fried, Yitzhak, 2017. "Locals know best? Subsidiary HR autonomy and subsidiary performance," Journal of World Business, Elsevier, vol. 52(1), pages 83-96.
    12. Chen, Haiyang & Hu, Michael Y., 2002. "An analysis of determinants of entry mode and its impact on performance," International Business Review, Elsevier, vol. 11(2), pages 193-210, April.
    13. Belderbos, René & Du, Helen S. & Slangen, Arjen, 2020. "When do firms choose global cities as foreign investment locations within countries? The roles of contextual distance, knowledge intensity, and target-country experience," Journal of World Business, Elsevier, vol. 55(1).
    14. Liu, Yuli & Ge, Yuejing & Hu, Zhiding & Wang, Shufang, 2018. "Culture and capital flows—Exploring the spatial differentiation of China's OFDI," China Economic Review, Elsevier, vol. 48(C), pages 27-45.
    15. Pierre-Xavier Meschi, & Edson Luiz Riccio, 2006. "Analyse longitudinale de l’impact du risque-pays et des différences culturelles sur la survie des coentreprises internationales au brésil entre 1974 et 2005," Revue Finance Contrôle Stratégie, revues.org, vol. 9(4), pages 87-111, December.
    16. Huang, Ying & Sternquist, Brenda, 2007. "Retailers' foreign market entry decisions: An institutional perspective," International Business Review, Elsevier, vol. 16(5), pages 613-629, October.
    17. Jiang, Marshall S. & Chu, Rongwei & Pan, Yigang, 2011. "Anticipated duration of international joint ventures: A transaction cost perspective," Journal of International Management, Elsevier, vol. 17(2), pages 175-183, June.
    18. Meschi, Pierre-Xavier & Riccio, Edson Luiz, 2008. "Country risk, national cultural differences between partners and survival of international joint ventures in Brazil," International Business Review, Elsevier, vol. 17(3), pages 250-266, June.
    19. Leonardo M. Klüppel & Lamar Pierce & Jason A. Snyder, 2018. "Perspective—The Deep Historical Roots of Organization and Strategy: Traumatic Shocks, Culture, and Institutions," Organization Science, INFORMS, vol. 29(4), pages 702-721, August.
    20. Gloria Alarcón-García & José Daniel Buendía Azorín & María del Mar Sánchez de la Vega, 2020. "Shadow economy and national culture: A spatial approach," Hacienda Pública Española / Review of Public Economics, IEF, vol. 232(1), pages 53-74, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eme:ijsepp:v:37:y:2010:i:2:p:101-118. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Emerald Support (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.