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.

KEYWORDS:

• foreign direct investment (FDI)
• human resource management (HRM)
• values gaps
• Confucianism
• Ubuntu
• China
• South Africa

Acknowledgements

We would like to thank the two anonymous reviewers and the journal editorship for the detailed and constructive feedback on prior drafts. We would also like to thank Professor Francis Nyamnjoh and Professor Thaddeus Metz for sharing their related publications to provide direction to the discussion. Many thanks to Professor Mine Yoichi, Professor Stefan Thau, and Professor Akira Takada for commenting on the draft.

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Additional information

Funding

This work was supported by the [Japan Society for the Promotion of Science] [grant number: 40807707].

Notes on contributors

Yanyin Zi

Yanyin Zi holds a PhD in African Area Studies from Kyoto University in Japan. She has been researching China–Africa relations since 2011 in Southern Africa. As a Research Fellow at the Global South Studies Center at the University of Cologne and Centre for African Language Diversity at University of Cape Town, she has focused on human resource management in Asian companies in Africa and how employment relations shape Asia-Africa relations at large. Yanyin is the author of Iron Sharpens Iron: Social Interactions at China Shops in Botswana, a book about the everyday interactions between Chinese merchants and Africa people, published by Langaa RPCIG.

Arthur Linke

Arthur Linke holds a PhD from the University of Stellenbosch Business School (USB) in South Africa. He is a research fellow at the USB where he lectures in risk management and international management with a focus on Africa. A member of the European Risk Research Network, an area of Arthur’s research focuses on Enterprise Risk Management (ERM). This ongoing research stream builds on a peer-reviewed book chapter with co-author Cristina Florio from the University of Verona titled “Enterprise Risk Management Measurement: Insights from an Interdisciplinary Literature Review” published by Springer. Another key area of research focus is human resources risk in a multi-national and cross-cultural environment, particularly within Africa.