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European Entry Decisions in China: The Role of Cultural Perceptions

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Cultural Distance in International Ventures

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Abstract

This chapter investigates to what extent and how perceptions of culture affect European investment decisions to China. First, it analyzes managers’ perceptions of “culture .” Secondly, it examines whether European managers’ perceptions are based on a European culture or on national cultures, and whether intra-China cultural differences are considered. We adopt a multiple case study research design composed of a panel of six European companies investing in China in the green tech industry. We use quantitative and qualitative analyses and a three-step data collection process. Results show that: (1) managers’ perceptions vary over time, between the pre- and post-market entry operation; (2) the cultural aspect is not considered by European managers before approaching China; (3) only after entering the Chinese market, European managers realize the relevance of culture; (4) they perceive China as a single entity rather than intra-China cultural differences; (5) when approaching China, European managers’ perceptions are based on a national culture (intra-Europe) rather than a common European culture; (6) the cultural dimension goes along with language , which, in specific cases, is perceived as a higher hurdle than culture .

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Authors and Affiliations

  1. Free University of Bozen-Bolzano, Bolzano, Italy

    Katiuscia Vaccarini

  2. University of Macerata, Macerata, Italy

    Francesca Spigarelli

  3. University of Macerata, Macerata, Italy

    Ernesto Tavoletti

  4. Jacobs University, Bremen, Germany

    Christoph Lattemann

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  1. Katiuscia Vaccarini
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Vaccarini, K., Spigarelli, F., Tavoletti, E., Lattemann, C. (2017). European Entry Decisions in China: The Role of Cultural Perceptions. In: Cultural Distance in International Ventures. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-62193-7_4

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