Making Sense of Localisation in China - Voices from A German multinational in Shanghai
Siegrist, Katharina Cornelia (2010) Making Sense of Localisation in China - Voices from A German multinational in Shanghai. [Dissertation (University of Nottingham only)] (Unpublished)
In a globalising world economy the issue of localisation among foreign invested enterprises in China has been a hot topic throughout the last years. Not only in terms of sourcing and procurement, or more and more relocations of manufacturing or R&D to China localisation was discussed and supported by the Chinese government (e.g. subsidies for foreign firms investing in research laboratories in China), but also in terms of HR work and localisation of management positions. With huge numbers of Chinese college graduates coming on the job market every year (2009 it were 6.1 million (Huang, 2009)) and tightened laws on issuance of working permits for foreign employees in the PRC, subsidiaries of multinationals are forced to consider staffing policies, suitability and need for expatriate personnel sent to China more than before. This involves how to further implement HR strategies to build up local Chinese talent. With expatriates in many cases lacking market knowledge on China, the question is if well-educated, experienced, confident and able Chinese local talent meanwhile might not be equally or better suited for most managerial jobs than expatriates. The argumentation is that local market knowledge is inevitable for stable, effective and over all sustainable business success and performance in a country with such culture differences as exist between Asia and Europe or America. With a majority of studies and papers on HR localisation issues having been based on quantitative methods this study aims at three things that were identified as gaps in the literature.
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