CROSS CULTURAL CHALLENGES AND OPPORTUNITIES FOR INDIAN BUSINESSES IN CHINA
Cross Cultural Challenges and Opportunities for Indian Businesses in China
1. Introduction
India and China are both countries with deep-rooted, ancient and traditional cultures. They both went through a cycle of prosperity and the economic downfall with the advent of colonialism, and now stand as amongst the fastest growing economies in the world. The liberalization of their markets forced them to come into contact with the global market and with each other. “Cross cultural ethical dilemmas often arise when a strongly ingrained, culturally derived practice confronts a dynamically changing business environment. Such dilemmas occur more often today because growth in international capital markets often involves the imposition of international business practices onto formerly isolated economies.” (Dunfee and Warren, 2001, p.191).
This paper outlines the challenges and opportunities faced by Indian companies doing business in China, and provides suggestions on addressing these issues. Considerable literature exists that compares cultural issues between India and China offering other countries advice on how to approach cross-cultural challenges in each of these nations. However, there are few papers addressing the adjustments Indian companies should make in order to succeed in China. As the extent of business between these nations expands, discourse on the issue becomes increasingly important. Section 2 of this paper draws a comparison between the Indian and Chinese cultures, as a reference point to illustrate the source of cultural convergence and divergence. Section 3 provides empirical evidence on challenges faced by Indian companies in China. Section 4 addresses the implications of cross-cultural challenges and provides recommendations on how to tackle these. Lastly, section 5 summarizes the paper.
2. Comparison of Indian and Chinese Cultures
The main cultural differences between India and China can be summarized as such:
1. Ethnicity and language: Chinese
1. Introduction
India and China are both countries with deep-rooted, ancient and traditional cultures. They both went through a cycle of prosperity and the economic downfall with the advent of colonialism, and now stand as amongst the fastest growing economies in the world. The liberalization of their markets forced them to come into contact with the global market and with each other. “Cross cultural ethical dilemmas often arise when a strongly ingrained, culturally derived practice confronts a dynamically changing business environment. Such dilemmas occur more often today because growth in international capital markets often involves the imposition of international business practices onto formerly isolated economies.” (Dunfee and Warren, 2001, p.191).
This paper outlines the challenges and opportunities faced by Indian companies doing business in China, and provides suggestions on addressing these issues. Considerable literature exists that compares cultural issues between India and China offering other countries advice on how to approach cross-cultural challenges in each of these nations. However, there are few papers addressing the adjustments Indian companies should make in order to succeed in China. As the extent of business between these nations expands, discourse on the issue becomes increasingly important. Section 2 of this paper draws a comparison between the Indian and Chinese cultures, as a reference point to illustrate the source of cultural convergence and divergence. Section 3 provides empirical evidence on challenges faced by Indian companies in China. Section 4 addresses the implications of cross-cultural challenges and provides recommendations on how to tackle these. Lastly, section 5 summarizes the paper.
2. Comparison of Indian and Chinese Cultures
The main cultural differences between India and China can be summarized as such:
1. Ethnicity and language: Chinese
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