Research On Problems Of Foreign Investments By Chinese Enterprises In The Cross-cultural Perspective

Through amounts of literature researches on foreign investments by Chinese companies,the results indicated that ineffective or inefficient cross-culture management has become one of the main reasons for the investment failures and crossculture conflict has become ‘A lion in the way' in the process of implementation of Going-global strategy by Chinese companies.With the promotion of ‘Belt and Road' initiative and implementation of ‘Going-global' strategy by more and more Chinese companies,cross-culture conflicts are going to be more and sharper.In addition,effective cross-culture management will become indispensable to any Chinese company carrying out the going-global strategy.Consequently,the research chose Bauing Group(Shenzhen)as the objective of case study.Bauing Group(Shenzhen)is a famous private enterprise in the building decoration industry and she won the prize of 2017 Best Enterprise Image of foreign investments.Based on the cross-culture perspective and Hofstede's model,with the first-handed materials acquirement by questionnaire survey and semi-structure interview,the research used literature research and case study method and made our research center on the following issues: Cross-culture conflicts and problems faced by Bauing Group(Shenzhen),reasons for these conflicts and problems in the cross-culture perspective,the risks faced by Bauing Group(Shenzhen)and the experience that can be learnt by other Chinese companies from the case.Firstly,KS Index was used to evaluate the culture distance between China and Indonesia and it indicated that the distance was large in some degree.Next,through the case analysis,the results of the research showed that Bauing Group(Shenzhen)were facing the conflicts or differences in the fields of religion,institutional system,political environment and values between China and Indonesia.And these conflicts or differences have brought about some problems such as more internal contradictions and misunderstandings among employees from different nations,higher level of management difficulties and political risks,higher hidden cost,lower efficiency,trust crisis and so on.Besides,prejudice and misunderstanding caused by historical factors,weak adaptability of Chinese employees,common contradictory views on China and threat from terrorism ISIS should not be ignored and so were the negative effects.Then,Hofstede's national culture model was used to analyze the problems and negative effects above in five dimensions such as power distance to find out the reasons for problems and negative effects above.After that,some suggestions were put forward such as to improve the effectiveness and efficiency of cross-cultural training,to build an effective and efficient cross-cultural management team,to put forward and implement a scheme to enhance the cross-cultural cognition and so on.Finally,to pay attention to the religion difference,to establish a positive relationship with the locals and others can be added into the experience that other companies can learn from the case of Bauing Group(Shenzhen).The research expected that the experience and case study of Bauing Group(Shenzhen)could provide a good lesson for Chinese companies when they are implementing ‘Going-global' strategy and investing in Indonesia.