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This chapter outlines the philosophic underpinnings of the self-management paradigm developed over the past three decades by China’s Haier Group, a global leader in white goods. The successful transformation of Haier from a small resource-poor firm to a dominant global giant is often attributed to the self-management culture established in the company by its legendary leader Zhang Ruimin. This management paradigm is a function of the humbleness displayed by Mr. Zhang Ruimin and rooted in his strong belief in the traditional Chinese philosophy of I-Ching and Daoism. We show how the hexagram of Qian (“qian”: humbleness, modesty) from I-Ching is linked to Mr. Zhang’s humble approach and analyze how the six parts of the hexagram of Qian are related to the six development stages of the Haier Group. These insights are used to give some thoughts to the leadership challenge associated with the creation of a dynamic and responsive global organization.

The purpose of this study is to explore the categories of leader traits, their generation and their relationships in leaders’ socialization.

The authors take the case study method, which is the most suitable method to answer research questions on why and how to fulfill the study purpose on the basis of the case of Ruimin Zhang.

Leader traits are classified into four categories with respect to socialization, namely, root trait, driving trait, thinking trait and affair trait. The root trait and the driving trait form from the leader’s insight with the impact of key events, mutually promote and consolidate each other, and together derive the thinking trait and the affair trait on the basis of critical events, culture, family, education, etc. The thinking trait is the premise of the affair trait to be expressed in leadership behavior. The root trait and the driving trait together determine a leader’s growth direction and efficiency and can distinguish leaders from non-leaders. The thinking trait and the affair trait together determine the pattern and effectiveness of leadership behavior and can distinguish effective leadership from ineffective leadership.

This study transcends prior integral leader trait research by categorizing leader traits from the socialization perspective, makes a clear delineation on the interrelationships among categories of leader traits, analyzes their holistic functions on the leaders, reveals the formation and relationship mechanism of leader traits and identifies the types of leader traits that can work as the standards for distinguishing effective leaders from ineffective leaders or non-leaders.

This study promotes the development of the leader trait theory in the classification, formations, relationships and overall effect of leader traits.

Given their immense value-creating potential, ecosystems?and whether to build, buy, or join one?have become a top agenda item in boardrooms around the world.

Haier, a highly successful Chinese multinational corporation has developed an effective set of practices for managing an emergent, ecosystem-based business model.

The Haier case illuminates the unique challenges of leading a sprawling, ecosystem-based enterprise that must continually evolve.

Haier employees fall into three categories? platform owners, microenterprise owners and entrepreneurs.

As a strategic innovator, Haier grouped its independent microenterprises into “Ecosystem Micro-Communities” (ECMs) of loosely connected, multi-disciplinary capability clusters organized around end users.

In today’s turbulent environments, competition has gone far beyond the traditional product‐based competition and taken on an increasingly new look, with its nature and rules changing fundamentally. Accordingly, firms are competing with one another at multiple levels at the same time and as a result building and enhancing multi‐layer competitive advantage is becoming the focus of competition for any firm to succeed. Tries to develop an effective framework for companies to deal with the challenges of turbulent environments by integrating existing theories and techniques together and applying them as a whole Finally, provides an integrated framework with a practical example of Haier Group as a perspective of organizational learning, where there is successful competition in a turbulent environment and where the model is implemented practically.

This paper aims to present a case for the practical management of corporate reputation, in relation to two groups of concepts: communication, identity, and trust; and communication, identity, and image.

A review of the current knowledge of corporate reputation, personality, identity, and image leads to development of a strategy framework to enhance/protect corporate reputation. A case study involving a corporate logo introduced into a developed market by an emerging multinational corporation (EMNC) is presented.

The paper identifies that credibility and trust are significant elements which must be managed and communicated to maintain the firm's corporate image and reputation.

A conceptual model is presented illustrating a series of internal and external factors affecting communication and trust, which influence the customer and assist in shaping corporate reputation. The case of the EMNC Chinese corporation Haier to introduce its brand into a developed market may enlighten others pursuing this path.

Two recent books will be of considerable value to company leaders and strategists seeking to deepen their understanding of the major trends driving this current wave of global transformation: “No Ordinary Disruption: The Four Global Forces Breaking All the Trends” and “China’s Disruptors: How Alibaba, Xiaomi, Tencent and Other Companies are Changing the Rules of Business.”

The author considers what dynamic capabilities that will be needed to compete in a world of “transient advantage,” like modern China, with its “complicated and quickly changing demand pattern,” hyper-competition, shifting industry boundaries, and “discontinuities in the regulatory context.” He believes that China is the business management laboratory within which these skills are already being honed.

By the turn of the millennium, the total revenue generated by private [Chinese] companies had already risen to parity with those of the state-enterprise sector, and since then it has grown more than six times faster.

The rise of China’s reform era entrepreneurs has come in three waves to date, each representing a significant progression in the collective capabilities and sophistication of the country’s ever-expanding entrepreneurial cadre.

Foreign multi-nationals would be wise to consider “what capabilities will have to be developed in China, for China,” learn from their Chinese rivals and ask where it might be possible to use these new “China’ capabilities ” to enhance performance globally.

Despite close to two decades of foreign direct investment (FDI) in China, and the country's enormous market potential, most US and European multinational corporations (multinationals) have never made a profit in that country. The distribution of profits among multinationals also seems highly skewed. The latest survey on profitability showed that five US companies accounted for one‐third of equity profits among US‐based multinationals in China. This research presented in two parts proposes explanations for why multinationals fail in China and strategic solutions for profitable operations.

Through in‐depth interviews with 29 CEOs and directors of major, profitable US and European multinationals, Overseas Chinese companies and PRC Chinese companies, this paper proposes a model of strategic convergence for successful operations in China. The first part discusses cultural and cognitive differences between Westerners and Chinese that affect the strategies they choose. The second part proposes a strategic model of convergence, fusing the best of both Western and Chinese business practices, for strategic success in China.

The research found that profitable foreign multinationals in China appeared to modify their management practices on eight dimensions, often adopting traditional Chinese methods of strategic planning and evaluations of effectiveness, as well as relations with key stakeholders, especially the government. Yet, these multinationals continued to retain their Western norms and values in business dealings. Conversely, profitable Chinese companies that competed with these multinationals also modified their management practices in line with Western norms

The study has implications for the management of foreign subsidiaries in China as well as the successful management of Chinese FDI in the USA and Europe.

Marketing, brand management, promotion management and corporate social responsibility.

Undergraduate and postgraduate.

How does the “country-of-origin” issue affect brands, and what do brands need to do? The case of unique and small corporate social responsibility (CSR) programs and their impact on creating brand awareness.

Aamer Khan, Managing Director Hafet Electrical LLC, the sole distributor for of Haier in United Arab Emirates (UAE) was reviewing their half yearly results. Among the more unconventional strategies they had adopted was one where they used community engagement to get an insight into the local market and develop brand awareness as a caring top quality brand. The CEO of Haier, Zhang Ruimin stressed that “quality is and will remain the essence of business sustainable, whether in the past, present or future”. Aamer was evaluating the effectiveness of the strategy and considering its impact. Should he use a similar strategy next year?

This case deals with the “country-of-origin” issue, an important aspect in branding a key strategy of marketing. The Haier brand and its country-of-origin were investigated among the Emirati (UAE nationals) consumers. This was done as part of a capstone research project by Meerah, Sara and Azza at Zayed University, Dubai. Further, the group created a unique CSR program for the Haier, whereby they invited people to join them in a Walkathon to raise money for a charitable cause. Haier donated various products like refrigerators, air coolers and air conditioners towards this charity. By creating this event, the group raised awareness of the Haier brand among the local population.

What is:

• “Country of origin” (coo) in marketing and its effect on brands?

• The role of CSR in corporate marketing communication?

• The role of small events in building brands?

“Country of origin” (coo) in marketing and its effect on brands?

The role of CSR in corporate marketing communication?

The role of small events in building brands?

Teaching notes.

The article reports on anti-hierarchical approaches to managing work outside the U.S. and independent of software development as evidenced in presentations at the November Drucker Forum by the French group, Vinci and the Chinese group, Haier.

The article looks at how radical innovations in organization structure, management processes and mindsets are being adopted by companies seeking the rapid-paced, customer-focused continuous innovation needed to survive in today’s dynamic marketplaces. These approaches are spreading throughout many established organizations. For traditionally managed hierarchical organizations, the transformation often involves radical shifts in power, attitudes, values, mindsets, ways of thinking and ways of interacting with stakeholders—customers, employee talent, shareholders and partners.

The Vinci Group is organized with 3,500 business units, so that there are in effect 3,500 entrepreneurs, all intent on developing good ideas. The Haier Groups has transformed its organization into a flat platform with thousands of micro-enterprises. There are no more than eight people in each one.

The Haier platform enables the microenterprises to interact closely and intensively with users, allowing them to participate in the development and production process. The goal is to align Haier’s people and the value they can create for customer users. The need is to unleash people’s potential so as to maximize value to users.

The article reveals that when companies disrupt the traditional “efficiency-based” organizational structure the do so in unique ways. Typical of the homegrown approach to post-bureaucratic organizations, Zhang Ruimin, CEO of Haier, pioneered a management model called “Rendanheyl,” which entails three disruptions: disrupting employees, disrupting organizational structures and disrupting compensation structures.

This study aims to build an indigenous Chinese management model based on Chinese culture.

This study adopts new institutionalism as its theoretical foundation, examines the core values of Chinese civilization in retrospect and identifies the key features of a Chinese management model. In this study, the authors develop a “glacier model” and test its reliability with the Haier Group.

This study proposes a new definition for a management model: a knowledge system based on institutional civilization that reflects management theory and practice. It analyzes the institutional environment of Chinese civilization: the recessive bottom-most layers are CBTLG (Confucianism, Taoism, Buddhism, legalism and Guan theory) and MDSX (Mao Zedong thought, Deng Xiaoping theory, scientific thoughts of development and Xi Jinping thought), the dominant principles are “Socialism and Mixed Economy” and the core values of Chinese culture compose the layer between them. This study concludes that the distinguishing features of Chinese management are harmonious management, the order-diversity pattern and Tai Chi management.

This paper only discussed the management model of China. Based on the conclusions of this paper, in the future, researchers comparative studies on Chinese management and other countries’ management models with glacier model. By so doing, people can have a more comprehensive understanding of management models of different cultures.

The management characteristics contained in Chinese culture can provide more abundant knowledge for understanding current organizational management issues. A better understanding of the characteristics of a Chinese management model based on Chinese civilization is conducive to foreign investment or cross-cultural cooperation between Chinese and foreign enterprises.

This study provides a new perspective in studying Chinese management. The theoretical values of the glacier model are as follows: it is rooted in a Chinese management context; it makes up for the insufficiency in the current study of institutionalism; and it guides cross-cultural communication and management. The authors hope that the study attracts the attention of more scholars. Any civilization of any region or country can construct its own management model using the frame of the glacier model.