Chinese firms are revolutionising management practices, adopting a “two-wheel drive” approach that combines Western management models and Chinese principles. This blend of strategies facilitates agility and innovation, essential for survival in China’s fast-paced business environment.
The “two-wheel drive” model incorporates two key elements: the ‘hard wheel’ of Western management, focused on results and performance metrics, and the ‘soft wheel’ of Chinese philosophy, emphasising relationships and moral conduct. This combination fosters a balance of competition and collaboration, creating a unique corporate culture that encourages learning and growth.
Chinese companies also utilise a ‘moat’ strategy, building a protective barrier around their core business to fend off competition. This involves expanding into diverse industries and creating an ecosystem of interconnected businesses.
Moreover, Chinese firms emphasise ‘internal entrepreneurship’, encouraging employees to innovate within the company. This approach boosts employee motivation and fosters a culture of learning and creativity.
Lastly, Chinese companies leverage ‘platform-based competition’, creating platforms that connect users, producers, and innovators. This model encourages collaboration and co-creation, driving growth and innovation.
In summary, Chinese firms are pioneering a new era of management, blending Western and Chinese principles to foster innovation, agility, and growth. Their unique strategies offer valuable insights for businesses worldwide.
Go to source article: https://hbr.org/2023/03/how-chinese-companies-are-reinventing-management