Benchmarking culture and performance in Chinese organizations

Purpose – To show differences in organizational performance, management style and systems, resulting from cultural differences in three organizational types: foreign‐owned, joint ventures, and Chinese‐owned and operated. Design/methodology/approach – A survey method was used to assess the management systems, leadership and styles within the cultural contexts of the three types of organizations using Hofstede's four cultural dimensions. Organizational performance was measured using balanced scorecard method and factors suggested by other authors. Performance measures were compared across the three types of organizations. Findings – Foreign‐owned and operated companies performed significantly better than their joint venture (JV) and Chinese‐owned and operated organizations as measured by financial perspective, customer perspective, internal business perspective, innovation and learning perspective and technological assessment. There was clear evidence of benchmarking among Chinese‐owned and operated organizations, learning from JVs and FOOs. Research limitations/implications – This study used only managers who had a minimum of five years' experience. The study also did not entertain cross‐breeding management styles. Practical implications – Provides useful information about benchmarking patterns being used by Chinese owned and operated organizations. As the blending of cultures in global organizations continues, learning organizations benchmark not only process technologies but also management systems, leadership and styles. Originality/value – The paper clearly provides a direct comparison among the three types of organizations operating in the Chinese cultural context. The methodology used is a blend of different approaches to ensure comprehensive assessment of organizational culture and performance.