Wuhan Erie Polymers joint venture
ERIE speciality chemicals was a company which is based in Cleveland, Ohio, which moved to china due to the key support provided by them in expanding their industrial capacity relating to chemicals. In order to expand its production in China performance polymers had merged with Wuhan plastics factory to form Wuhan Erie Polymers (WEP). Stanley Wong was the manager of the team that negotiated the joint venture and soon became general manager and then chairperson of the Joint venture. Though he was very pleased with his transfer back to Gary, he wasn’t finished yet. He wanted to nominate a successor who would take the company to another level. He …show more content…
The third approach is to leave each culture alone, allowing each subsidiary to develop its own organizational culture, which is probably tied to the national culture with varying degrees of influence.
Hofstede (2001) came up with five dimensions of the national culture which all societies have to cope with and they used to measure cultural differences between organizations
1) power distance- the higher the power distance the more centralized and hierarchical the structure of the organization is. All organizations should increase their power distance in order to overcome any cultural barriers
2) uncertainty avoidance- organizations with high uncertainty avoidance are usually bigger in size and the loyalty is much stronger. These organizations are usually reluctant towards new technology and are more prone towards change. (Hofstede 2001)
3) Individualism and collectivism- this dimension measures the extent of the relationships an individual has towards the organization. Organizations having high IDV show individualistic and task –oriented behaviour of