Specific Problems of Management in Russo-Chinese Joint Ventures (Specialized in Energy & Power Products)

Abstract

Thanks to a number of positive factors benefiting a favorable investment climate in the People’s Republic of China, the Russian investors keep on exporting capitals and hi-technologies to this country and creating a number of companies and businesses, including enterprises, specialized in manufacturing power and energy products. In this paper we analyzed the relevant literature and compared managerial models at Chinese enterprises with those in China managed by the Russian based on well-established theories related to adopting foreign management at the enterprises in China. In the empirical study we concentrated on certain problems emerging at the enterprises where the Russian managers have been present and involved actively in the decision-making. The purpose of this paper is to suggest a preliminary analysis through the eyes of both Russian and Chinese specialists.

Comparing organizational structure and design in Canadian & Russian enterprises based in P.R. of China (specialized in hi-tech and nano-technologies)

“…[18] At joint ventures, management experience far stronger expressed difficulties, such as insufficient degree of authority delegation to any Russian managers regardless of their positions, excessive centralization of power in Chinese general manager's hands, as well as difficulties in properly conveying all the technological aspects to the Chinese workers -this occurs even under the circumstances that the Russian technology has normally been the core (and the reason) for the Joint Venture (JV) establishment. [24] A "liaison" position may be established formally to route the communication directly, bypassing the vertical channels. The position carries no formal authority, but because the incumbent serves at the crossroads of communication channels, he emerges as a nerve center of the organization with considerable power.…”

“…[20, p. 179] Also, for better understanding the challenges of Russian management in the Chinese environment, it was deemed necessary to review literature reflecting the characteristics of the management in China. [24] Basing on such different management styles, it is reasonable to talk about a certain adaptive "layer" in management organizational structure [18]. Organizational design classics suggest solving this problem by establishing Liaison Team, which can play Liaison roles .Liaison roles are specialized roles designed to facilitate communication between two interdependent work units.…”