Expatriate Culture Shock in China: A Study in the Beijing Hotel Industry Notes

Expatriate Managers in China

From 1949 to 1976, China was a closed society but began to open up under leaders Hua Guo-Feng and Deng Xiao-Ping. This change led to more business and trade connections with other countries. Although there are many workers available, skilled managers who understand modern business practices are rare, so companies hire expatriate managers to help start operations.

Costs of Expatriate Manager Inability to Adjust

About 16-40% of expatriate managers leave their assignments early because they struggle to adapt. Even those who stay often do not perform well, with up to 50% not reaching their full potential. The cost of these failures to the parent company can range from 65,00065,000 to 300,000300,000 per incident.

Chinese Culture

According to Hofstede:

  • Collectivist: People find happiness in group harmony.

  • High Power Distance: There is a strong respect for authority and decisions are often made by those in power.

  • Medium to Low Uncertainty Avoidance: People are generally comfortable with uncertainty and change.

Hall describes Chinese culture as one with high-context communication, meaning much is communicated indirectly.

Culture Shock

Culture shock is the stress felt from experiencing a new and unfamiliar environment. Walton suggests that the adjustment process starts with excitement, which can turn into disillusionment and culture shock. People respond to culture shock in different ways, such as resistance, assimilation, or acculturation. Symptoms include:

  • Overly concerned about cleanliness

  • Worrying about small issues

  • Feeling fear, sadness, or anger

  • Relying heavily on fellow countrymen

  • Reluctance to learn the language of the host country.

Factors Influencing Adaptation

The ability to adapt is influenced by individual factors (like age, education, experience), preparedness for stress, cultural differences, and job-related issues (like understanding roles and having autonomy).

Research Aims

The study investigates culture shock among expatriate managers in Beijing, focusing on how factors like age, education, language skills, and cultural distance impact them.

Research Methods

Preliminary discussions were held with managers of joint-venture hotels in Beijing. A research tool was created that included a questionnaire on personal and situational information, an inter-cultural sensitivity test, and a culture shock test.

Key Findings
  • Non-Asian expatriates tend to have slightly more inter-cultural sensitivity than Asian expatriates.

  • Training received before or after arriving in China is linked to higher inter-cultural sensitivity.

  • There is a positive correlation between language ability and culture shock, influenced by where the expatriates come from.

  • Higher inter-cultural sensitivity is strongly connected to lower levels of culture shock.

  • Focus on negotiation is positively related to culture shock, while focus on motivation is negatively related.

  • The frequency of interaction with Chinese employees correlates with culture shock levels.

Regression Models
  • Inter-cultural sensitivity: Factors like training, education, region of origin, and Chinese language skills explained 12% of its variance.

  • Culture shock: A model including inter-cultural sensitivity and working with Chinese employees explained 37% of its variance.