Values gaps affecting human resources management relations between expats and locals: The case of a Chinese manufacturer in South Africa

ABSTRACT Chinese companies have continued to increase foreign direct investment (FDI) and engagement within Africa, perceived as a last global frontier market, particularly in light of China’s Belt and Road initiative. The literature highlights a number of human resources management (HRM) risks, challenges and misalignments, including values gaps between Chinese company expats and local stakeholders, affecting achievement of the objectives of FDI. Whilst Chinese (Confucianism) and African (Ubuntu) cultural values may appear similar on the surface, there are significant differences in their finer detail that cause HRM challenges in practice. This ethnographic study examined a Chinese manufacturer in post-apartheid South Africa, decoding significant gaps in values towards key themes affecting HRM relations between Chinese expats and local personnel, such as styles of communication, community building, transparency, and planning horizon. Addressing these values gaps was critical to achieving positive HRM outcomes, and thus to the success of the local organization and ultimately the achievement of FDI objectives. Recommendations indicate how the organization and individuals can further contribute towards bridging values gaps, thereby building HRM relations and relationships.