A Study on Cross-Cultural Management of FAW-Volkswagen

Abstract

With the deepening of Economic Reform and Open up, more and more foreign-funded enterprises come to China to invest and set up Sino-foreign joint ventures. Due to the differences in cultural backgrounds between the two sides of Sino-foreign joint venture, cultural conflicts are inevitable. Proper cross-cultural management mechanism is the most effective measure to eliminate cultural conflicts in Sino-foreign joint ventures, while the complex business environment and the diverse personnel structure are the problems that cross-cultural management faces. FAW-Volkswagen Automotive Co., Ltd. (hereinafter referred to as FAW-Volkswagen), as one of the most successful large-scale Sino-foreign joint ventures in China, has accumulated a lot of fruitful experience in the field of cross-cultural management. Its cross-cultural management experience is a good reference for other Sino-foreign joint ventures. Based on Corporate Culture Theory, Cross-Cultural Management Theory, and the cross-cultural management experience of FAW-Volkswagen, this paper will propose a general cross-cultural management model applicable to other Sino-foreign joint ventures.