Innovation with ‘Chinese’ characteristics? Reflecting on the implications of an ethnic-based paradigm of management and innovation

Abstract

Cultural studies seem to dominate the field of management and innovation in China. Researchers have defined and considered Confucianism and a number of common, transnational Asian/Chinese values and practices allegedly unifying China and parts of East Asia. These values and practices have been erected as the cultural pillars of ‘Chinese management’, ‘Chinese entrepreneurship’ and, more recently, ‘indigenous innovation’ in the ethnic Chinese world and now mainland China. We believe these values and practices, frequently claimed as unique and fueling innovation in Chinese firms, to be potentially manipulated for strategic purposes, by political authorities as well as business organizations. This paper examines the aforementioned premises and questions the notions of Chinese ethnicity, values, management and innovation from political and strategic perspectives. We first present the emergence of Chinese values and Chinese management. We then consider this emergence in relation to political agendas and the renewal of Asianism or New Confucianism. The second part of the paper analyzes how such values and ethnicity can be utilized by entrepreneurs for both defensive and offensive business purposes. We then illustrate our debate with some reflections on the Shanzhai form of indigenous innovation before concluding with implications for researchers, managers and entrepreneurs and discussing the dangers of exoticism and avenues for future empirical research.

Notes

1. Huntington distinguishes China (and a number of smaller neighboring countries, such as Vietnam, Taiwan, Koreas and Singapore) as a distinct Confucian or Sinic complex.

2. Numerous accounts of the origin of the term ‘shanzhai’ have been offered. Historically, shan zhai refers to mountain (shan), villages (zhai) and bandits who oppose and evade the corrupt authority to perform deeds they see as justified, as described in such classical novels as Water Margin and Outlaws of the Marsh. Another explanation is that a great many shanzhai/copycat manufacturers are located in Shenzhen environs. Thus, wholesalers started calling their products Shenzhen products. Pronounced with a Cantonese accent, Shenzhen products eventually became shanzhai products.