Leadership, national culture and performance management in the Chinese software industry

Abstract

Purpose

The purpose of this paper is to adopt a national cultural perspective to explore the issue of performance management in human resources among successful Chinese software firms which are owned and led by their founders. The paper aims to highlight the unique characteristics of performance management that has emerged from a Confucian culture shaped by the socio‐economic model in post‐Second World War China.

Design/methodology/approach

Multiple case study of large‐medium‐small software firms using data collected from primary and secondary sources.

Findings

The basic tenet is that despite prevailing international best practice of performance management in the Chinese software industry, the success of indigenous firms is associated with entrepreneurial leaders who align their firms' performance management with the core cultural value of collectivism.

Research limitations/implications

The paper provides a unique insight into the influence of collectivism on the process of performance management in the human resources function.

Practical implications

There might be a fine balance between implanting global performance management practices and accentuating the strengths and capabilities of the local employees within the confines of China's long history and distinctive culture.

Originality/value

Since competitor and customer variables share similar characteristics across segments of the global software industry, the human resources that enable firms to generate competitive advantages in marketing and technology will be critical for success. This paper provides an important test of the relationship between core cultural value and performance management of a knowledge‐intensive sector.

Citation

Tsang, D. (2007), "Leadership, national culture and performance management in the Chinese software industry", International Journal of Productivity and Performance Management, Vol. 56 No. 4, pp. 270-284. https://doi.org/10.1108/17410400710745306