Cross-cultural conflict management in Taiwan-funded enterprises in mainland China

Abstract

As the quantity of Taiwan-funded enterprises investing in mainland China keeps increasing, management problems caused by cultural differences between the mainland and Taiwan have drawn attention from both academic and business circles. Though they are of the same origin, Taiwan culture and mainland culture have formed their individual characteristics due to different social evolution for more than a century. In this study based on Hofstede’s Culture Measurement Model, cultural conflicts in Taiwan-funded enterprises in mainland China are systematically analyzed from the three levels of values, institution and management behavior through the interview analysis of three Taiwan-funded enterprises. Starting with the strategy of collaborating in conflict management, specific and constructive solutions to the problems mentioned above are proposed accordingly. With the deepening of cross-Strait relations, numerous Taiwan companies invest in mainland China. They face cultural conflicts brought by cultural differences between the mainland and Taiwan when Taiwan-funded enterprises copy Taiwan management mode to mainland China. This problem has a significant impact on company development. Difference in values between people in the mainland and Taiwan caused by different histories, social patterns and economic systems will necessarily provoke cultural conflicts. Cultural conflicts damage the harmonious relationships between the management and staff, weaken team cohesiveness, and are not in the interest of global strategy implementation by Taiwanfunded enterprises. It is an important topic of conflict management how to understand cross-Strait cultural differences, to solve cultural conflicts in Taiwanfunded enterprises, and to help enterprises gain sustainable competitiveness.