Power distance in cross-cultural environment: Observations from two Chinese companies in Europe

Abstract

Cultural differences have a strong influence on the work and study climate in cross-cultural environment. A difference in power distance has been shown to be a major factor in decreasing motivation, especially when the superior follows a hierarchical leadership style but the subordinates expect equality. This can lead to high turnover rates in companies and low learning outcomes in schools if not taken into consideration. In this paper, we use examples to demonstrate how the problems appeared in two case studies of Chinese companies operating in Europe. The findings have been categorized into five themes: hierarchy, authority, closed communication, promotion, and unequal treatment.