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U.S. corporations are from Mars,Chinese corporations are from Venus
Institution:1. West Virginia State University, Institute, WV 25112, U.S.A.;2. Neeley School of Business, Texas Christian University, Fort Worth, TX, U.S.A.;3. Jindal School of Management, University of Texas at Dallas, Richardson, TX, U.S.A.;4. School of Management, Shanghai University, Shanghai, China
Abstract:Relations between U.S. and Chinese corporations are increasingly strained. In this article, we examine how differences in the key domains of corporate governance, underlying corporate philosophy, innovation, and dispute resolution contribute to this strained relationship. We illustrate these differences by examining the relations between Skyworks Solutions (U.S.) and ZTE (China). We discuss the three broad strategies available to U.S. managers in engaging with Chinese corporations, depending on the extent of their involvement and comfort with discord: (1) playing ball, (2) straddling the middle ground, and (3) decoupling.
Keywords:Institutional theory  Corporate relations  International business  Decoupling  China
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