Abstract

Info

Title:: Inherent mechanisms between enterprise value orientation and enterprise performance through both Chinese and Western cultures

Author(s):: YANG Wan-su; YANG Shan-lin; School of Management, Hefei University of Technology, Hefei 230009, Anhui, China

Keywords:: enterprise value orientation; brand; enterprise performance; social trust

Abstract:: To thoroughly understand the reasons behind the short life of Chinese enterprises, why product quality problems persist, and why multinational companies brazenly bribe firms in China, it is important to consider the backgrounds of Chinese and Western cultures. In this study, we theoretically discuss the evolution from the enterprise value orientation to the enterprise preference strategy, and then to enterprise performance; moreover, we analyse the shift of the enterprise preference strategy under different scenarios of social trust. The results demonstrate that Chinese enterprises’ value orientation is “connection orientation” and they prefer the Guanxi strategy, i.e. their shortterm enterprise performance is good but longterm is poor. However, the western enterprises’ value orientation is“business orientation” and they prefer brand strategy, i.e. their shortterm enterprise performance is poor but longterm is good. Thus, when social trust is high, the connectionorientation enterprise will be inclined towards the brand and neglect Guanxi based on strategy; however, when it is low, the businessorientation enterprise will be inclined towards Guanxi and neglect the brand.