Abstract
As China shifts from a high-growth to a low-growth economy in recent years, management models that provide guidance on ‘how a business can be sustained longer’ are being sought after by many companies. The search for new management models has led to various directions, but one of the most notable directions is an approach towards traditional Chinese philosophies, particularly Confucianism. Some companies have already adopted Confucianism-based management, and the most prominent actor in this trend is the Ningbo Fotile Group. Based on fieldwork and existing literature, this paper discusses the development of a management philosophy based on Confucianism at Fotile and the way how the philosophy is put into practice. The paper then places the case of Fotile within a cultural context that surrounds family businesses in the Chinese society and identifies relevant implications.
This paper is part of a joint research with Dr. Dou Xiaojie (Ritsumeikan University) and is a major revision of Kawaguchi (2016).
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Notes
- 1.
Although not examined in this paper, one of these directions is an approach to the so-called Japanese-style management, and currently, the most prominent actor here is Kazuo Inamori (founder of Kyocera Corporation). Many copies of books written by Inamori (translated into Chinese) have been sold, and his lectures in China attract thousands of audience. What is notable is that Chinese interest in Inamori not only concerns his management method as represented by the ‘amoeba management’ but also his management philosophy based on his life experiences. Some of the business owners who are influenced by Inamori’s management philosophy incorporate his ‘great familistic management’ style into their companies and introduce in-house events such as athletic competitions and birthday parties. The author would like to discuss Chinese companies’ approach to ‘Japanese-style management’ on another occasion.
- 2.
In the mid-2000s, which was a quarter of a century after the beginning of China’s economic reform, many private companies were driven by the need to push business succession to the next generation due to the advancing age of the founding generation.
- 3.
A business case (McFarlan et al. 2013) listed on the Harvard Business School website (https://www.hbs.edu/) is an example of a publication in English.
- 4.
There was initially a significant backlash from blood relatives upon introducing this rule, but the Maos suppressed the backlash under a strong conviction and pushed forward with the new rule.
- 5.
The mission was changed to ‘for the happiness of hundreds of millions of families’ in 2018. Specifically, the new mission means ‘to provide products and services of the highest quality, create a healthy and eco-friendly lifestyle, communicate the excellent traditional culture of China, bring about better livelihood to hundreds of millions of families, and contribute to the realization of a happy and fulfilling life’. Based on Mao Zhongqun’s lecture titled ‘Fotile and Confucianism’ (9 May 2018, at Doshisha University, Kyoto).
- 6.
The vision was changed to ‘to be a great enterprise’ in 2015. Specifically, the new vision means ‘satisfy the demand of clients as an economic organization and create new demands, and actively fulfil social responsibilities as a social organization; lead people to the right way at all times and promote truth, goodness, and beauty of the human society’. Based on Mao Zhongqun’s lecture titled ‘Fotile and Confucianism’ (9 May 2018, at Doshisha University, Kyoto).
- 7.
Based on an interview with Mao Lixiang (18 Oct 2013, at Fotile’s headquarters).
- 8.
Based on an interview with Mao Lixiang (18 Oct 2013, at Fotile’s headquarters).
- 9.
Based on an interview with Mao Lixiang (18 Oct 2013, at Fotile’s headquarters).
References
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Kawaguchi, M. (2020). A Sociological Approach to Management Philosophy of Chinese Family Businesses in a Transition Period: The Case of Ningbo Fotile Group. In: Mitsui, I. (eds) Cultural Translation of Management Philosophy in Asian Companies. Translational Systems Sciences, vol 21. Springer, Singapore. https://doi.org/10.1007/978-981-15-0241-5_7
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