Towards Intercultural Effectiveness in Chinese Organisations in Southern Africa

1. Towards Intercultural Effectiveness in Chinese Organisations in Southern Africa Fungai Chigwendere PhD Candidate International Symposium on China in Africa. Implications for Management – Implications for change. Rhodes University 31st November 2013

2. Content • Introduction and background • Challenges & opportunities faced in Chinese organisations • Implications of challenges for management • Status of current research on management of Chinese organisations in Africa • Intercultural Effectiveness (IE) & history of the study of IE • Existing approaches to Intercultural Effectiveness • Limitations of current approaches • A new perspective/ new approach to intercultural effectiveness. • Aims & Objectives of the proposed study • Research methods and techniques

3. Introduction & Background • China’s growing importance as an economic partner to Africa - Chinese investments in key development & infrastructure projects iv various sectors - Progressively growing trade , with for example China assuming position of South Africa’s top trading partner • Complexity of the China-Africa relationship - Upstairs (bilateral, multilateral, political & economic engagement) - Downstairs level (business and community level) (Park & Alden, 2013) Study aimed at the ‘downstairs’ level which has so far not been well researched

4. Challenges faced in Chinese organisations • Both the Chinese & Africans face challenges in their interaction within the organisation & with local communities • For China challenges may include a harsh business environment characterised by; - uncertainties of supply - negotiation dynamics - resolution of disputes - communication - public image - personal management (Laryea, Leiringer & Hughes , 2010)

5. Challenges faced in Chinese organisations • Culture Gap impacting on; - communication, working habit, religion, orientation, coexistence (Feng & Mu, 2010) - Different values & own accepted ways of management (Universality of management approaches? (Hofstede, 1980) • Power relationships & the connection between effectiveness & appropriateness (Jackson, 2012)

6. Challenges faced in Chinese organisations • The nature of the relationship (South-South) - A new relationship differing from the North- South relationship & presenting a different set of challenges and/or opportunities Challenges have implications for Effectiveness and appropriateness

7. Response to the Challenges What to? • Organisations need to move towards avoidance, minimisation or effective resolution of challenges How? • Gain a better understanding through research • Develop appropriate training & strategic interventions to enhance effectiveness & appropriateness

8. Response to the Challenges Status of current research • Very little research done • Available knowledge mainly anecdotal and depicted negatively in the media • Either due to biases of western reporting reflecting the policies and engagement at the upstairs level &/or realities of the challenges faced at the downstairs level

9. INTERCULTURAL EFFECTIVENESS

10. Intercultural Effectiveness • To be effective functioning in another culture “ Intercultural effectiveness is the ability to minimise the risk of failure and to enhance the individuals and the organisations chances of success in an international environment.” (Center for Intercultural learning, 2011) What is success & what does it mean to be effective and from whose perspective? Need to create a win/win scenario

11. History of the study of intercultural effectiveness • Middle of last century • Links with intercultural communication • ‘The Silent Language’ (Edward Hall, 1959) • Broadening scope - dimensions of intercultural effectiveness (Hammer, Gudykunst, Wiseman, 1978) • Factors contributing to identified as including; intercultural communication, establishment of interpersonal relationships, understanding of others, adjustment to other cultures

12. Existing approaches to intercultural effectiveness (among others include;) • Characterisation of intercultural effectiveness and the inter-culturally effective person e.g. - Cross-cultural focus on the interaction between behavioural, affective and cognitive dimensions of IE. (Hammer et al. 1978; Cui & van den Berg,1991; Cui and Awa, 1992) - Development of the Intercultural Effectiveness Scale (IES) for evaluation of competencies critical to interacting effectively with people who are from cultures other than our own (Mendenhall, Stevens, Bird, Oddou & Maznevski) • Assessment of Intercultural effectiveness in view of worker adjustment & job performance (Cui and Awa, 1992) • Focus is predominantly on effective intercultural communication and is likely to come through in the study

13. Limitations of existing approaches • Mostly use the USA base as a reference point with East/West studies (Liu, Volcic and Gallois, 2011) • Potentially prone culture specific interpretations of IE which may not be similar to the African context (Abe & Wiseman, 1983) • One sided - focusing on home country concerns only without consideration of host country concerns (effectiveness /appropriateness debate, Jackson, 2012)

14. Proposed approach ‘DUAL VIEW’ APPROACH TO UNDERSTANDING INTERCULTURAL EFFECTIVENESS TAKING BOTH HOST & HOME COUNTRY PERSPECTIVES INTO COGNISANCE

15. Study in a new South/South Context, against a backdrop of Literature based on single view East/West perceptions potentially prone to culture specific interpretations HOST COUNTRY PERSPECTIVE HHOME COUNTRY PERSPECTIVE Identify Synergies & gaps that can be optimised to enhance intercultural effectiveness External factors may influence PERCEPTIIONS

16. Why study intercultural effectiveness? Failure to address intercultural issues may result in: • Continued misunderstandings, discontent & dissonance • Continued negative reporting in the media • Continuing difficulty in integration

17. Aims & Objectives of research • Develop a conceptual framework for understanding intercultural effectiveness in a Sino-African context through systematic case study research taking into account limitations of existing approaches.

18. Objectives of the Research • Identify and describe perceptions of intercultural effectiveness & whether they differ between host and home country • Identify challenges faced by Chinese owned organisations impacting on their ability to be effective • Identify gaps and synergies between Chinese management culture and host country management culture and how these affect IE issues

19. Potential questions to address; RQ. 1 In what ways do home and host country perceptions of intercultural effectiveness differ? RQ. 2 What challenges do Chinese organisations face that impact on their abilities to be inter-culturally effective? RQ. 3 What are the gaps and synergies between Chinese management culture and the host management culture, and how does this impact the ability to be inter -culturally effective?

20. Contribution • Contribute to the body of knowledge of intercultural effectiveness theory • Test alternative approaches to understanding intercultural effectiveness • Practical implications for training, which itself has been identified as a key strategy for dealing with many of the challenges emerging in the Sino-Africa relationship

21. Research Methods & Techniques • Mixed Methods Research • Embedded design • Qualitative dominant approach where quantitative data collection methods provide a secondary supportive role to enlarge the largely qualitative research as appropriate

22. Research Methods & Techniques • Multiple embedded case study • Data collection through; - In-depth interviews (semi-structured & open ended questions. Formulated from previous research on IE and that on Chinese and African management culture) - Questionnaires (drawn from qualitative data) - Documentary analysis (reports, memos,minutes of meetings, inter-office memos, and all other materials relevant to the maintenance of the organization )

23. Research Methods & Techniques Selection of Cases • Purposeful Sampling to represent different Chinese organisational typologies - 2 state owned enterprises - 2 multinational corporations (manufacturing of electronics) • Chosen due to size and potential to provide greater representation of Chinese and African’s workers and managers

24. Research Methods & Techniques Data Analysis • Qualitative data • Content Analysis • Cross - Case Comparison • Quantitative data • Factor Analysis • Data Analysis software (NVIVO & SPSS)

25. Thank You!