The Effects of Cultural Barriers on Market Entry Strategy

Dr. Mona Chung
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The increasing interests worldwide urge researchers to examine the strategies used specifically for tackling the Chinese market. This urgency is brought forward by the fact of a low success rate of international businesses operating in China in the past twenty years. This paper identifies the fundamental barrier — cultural difference and its impact on Australia-China business practices. It identifies the differences which impinge on basic decision making processes. It raises the issue of where cultural factors should be placed in organizations. It stresses that consideration of cultural differences plays an important role in the success of entering the Chinese market. Through a single case study of an Australian organisation's operation in China, it is demonstrated that cultural differences are to be considered at a strategic level rather than an operational level. In this method, appropriate implementations will be able to be carried out.

Keywords: FDI, Cross-Cultural Studies, Strategic Management, International Business, Australia, China
Stream: Politics of Diversity
Presentation Type: Paper Presentation in English
Paper: Effects of Cultural Barriers on Market Entry Strategies, The

Dr. Mona Chung

Coordinator at Monash College , Management Department, Faculty of Business and Economics, Monash University

Mona Chung has an impressive career in conducting cross-cultural businesses internationally. She has depth experience in establishing international businesses in China. Her major contribution in the area of FDI into China is to identity barriers to successful operation in overcoming cultural difficulties. Her Ph. D. focuses on this topic and provides management implications. She is at the forefront of cross discipline research and an author of numerous publications in the area of cross-cultural business studies.

Ref: D05P0278