Ted Tsai ( 蔡錫濤 ) Professor, IHRD, NTNU Jade Lin ( 林碧玉 ) HR Specialist, MediaTek

1. Guess Who Is Coming To Lunch: Factors Affecting the Promotion of Chinese Managers in China-Based Taiwanese Companies Ted Tsai(蔡錫濤) Professor, IHRD, NTNU Jade Lin(林碧玉) HR Specialist, MediaTek

2. Background of the Study • Taiwanese companies are heavily investing in China. • Developing host country managers is a trend for Taiwanese companies having operations in China. • Performance appraisal and promotion are important issues of these companies in the process of developing host country managers

3. Taiwan’s FDI in China

4. Taiwan & China • Same language • Similar ethnicity • Similar culture & life style? • One side one country or be united?

5. Research Purposes • Investigating the ways for developing Chinese managers in China-based Taiwanese companies (CBTC). • Studying the policies for promoting Chinese managers in CBTC. • Identifying the roles of Taiwanese managers in the process of developing Chinese managers. • Identifying the factors that affecting the promotion of Chinese managers.

6. Research Design • Method: A qualitative multi-case case study • Instruments: An self developed interview questionnaire and the researchers • Data Collection: Interviewing 10 Taiwanese managers and 12 Chinese managers of 11 CBTC in Shanghai and vicinity cities, China.

7. Data Analysis • Recording the interview • Transcribing the recorded data • Reading the transcript carefully • Highlighting the key sentences and concepts • Coding & classification • Comparing cases • Presenting the results

8. Research Findings (I) • China-based Taiwanese companies often inherit the essence of the parent company’s promotion systems and make improvements based on local circumstances. • Internal promotion is always given a higher priority than external recruitment.

9. Research Findings (II) • Policies of promotion often resemble that of the parent company in Taiwan. Actual frequency of promotion varies from company to company. • Promotion in most companies takes place once or twice a year, but promotions in some companies occurred far more frequently because of the rapid development of the industry.

10. Research Findings (III) • The roles Taiwanese managers played in the process of developing Chinese managers: • Valuable helper • Mentor • Friend

11. Key Factors Affecting the Promotion of Chinese Managers • Seven competence factors • Six advantageous factors • Eight obstacles • Other important factors

12. Seven Competence Factors • Attitude • Motivation • Personal traits • Technical abilities • General abilities • Leadership abilities • Interpersonal abilities

13. Six Advantageous Factors • Policies of hiring HCNs as managers • Stronger motivation • Lower salary • Easier to communicate with local governmental agencies • Better understanding of local cultures, laws and regulations. • Better communication with workers.

14. Eight Obstacles • Less experience • Bad communications with Taiwanese managers • Narrow minded • Thinking inside the box • Irresponsible • Localness • Careless • Poor in foreign language

15. Other Important Factors • Demographical factors • Province where someone comes from • Sex • Department worked • Seniority • Organizational factors • Superior’s preference • Person-organization fit • Job performance.

16. Conclusions • Global Integration vs. Local Responsiveness • Efficiency vs. Flexibility • Expatriate from Headquarters vs. Local Development

17. Thank you !