The impact of Chinese culture on the service contribution in European manufacturing companies
Journal
International Journal of Chinese Culture and Management
ISSN
1752-1270
ISSN-Digital
1752-1289
Type
journal article
Date Issued
2008-07-18
Author(s)
Gebauer, Heiko
;
Puetz, Felix
;
Seite, Fabrice
;
Schönsleben, Paul
Abstract
Few Chinese subsidiaries of European manufacturing companies are
reported as making profits. The majority find it extremely difficult to transfer their traditional business model to China. According to the business model, the European manufacturing companies generate a major share of their total value proposition through services. They earn, for example, about 25% of their total revenue through services in Europe, but their Chinese subsidiaries achieve only 10%. Thus, they are losing potential earnings and weakening their overall profitability. The main reason stems from the problems associated with managing the service business in the context of Chinese culture. The present article analyses these effects and offers some guidance for managers seeking to increase the service contribution in the Chinese subsidiaries of European manufacturing firms.
reported as making profits. The majority find it extremely difficult to transfer their traditional business model to China. According to the business model, the European manufacturing companies generate a major share of their total value proposition through services. They earn, for example, about 25% of their total revenue through services in Europe, but their Chinese subsidiaries achieve only 10%. Thus, they are losing potential earnings and weakening their overall profitability. The main reason stems from the problems associated with managing the service business in the context of Chinese culture. The present article analyses these effects and offers some guidance for managers seeking to increase the service contribution in the Chinese subsidiaries of European manufacturing firms.
Language
English
Keywords
Service business
manufacturing firms
Chinese culture
HSG Classification
contribution to scientific community
Refereed
Yes
Publisher
Inderscience
Publisher place
Olney
Volume
1
Number
3
Start page
289
End page
301
Pages
13
Subject(s)
Division(s)
Eprints ID
46413