Skip to main content
Log in

Institutional and cultural barriers to transferring Lean production to China: Evidence from a German automotive components manufacturer

  • Research Article
  • Published:
Asian Business & Management Aims and scope Submit manuscript

Abstract

Our qualitative study of a globally operating German automotive components manufacturer demonstrates how certain cognitive dispositions and behaviours of Chinese employees acted as barriers to the transfer of the firm’s Lean production system to its subsidiaries in China. We analyse how these barriers were rooted in the Chinese institutional and cultural context, thereby contributing a new micro-level perspective to business systems literature. Our findings further suggest that manufacturing in China will not be truly ‘Lean’ in the near future, which may place constraints on China’s technological development at a larger scale.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Figure 1

Similar content being viewed by others

Notes

  1. We use the term ‘employee’ to include all levels of the hierarchy.

  2. It should be noted that this perception is not in line with all current Chinese engineering curricula.

References

  • Allik, J. and Realo, A. (2004) Individualism-collectivism and social capital. Journal of Cross-Cultural Psychology 35 (1): 29–49.

    Article  Google Scholar 

  • Aminpour, S. and Woetzel, J.R. (2006) Applying lean manufacturing in China. McKinsey Quarterly 2 (1): 106–115.

    Google Scholar 

  • Aoki, K. (2008) Transferring Japanese kaizen activities to overseas plants in China. International Journal of Operations and Production Management 28 (6): 518–539.

    Article  Google Scholar 

  • Barabasch, A., Huang, S. and Lawson, R (2009) Planned policy transfer: The impact of the German model on Chinese vocational education. Compare 39 (1): 5–20.

    Google Scholar 

  • Bicheno, J. and Holweg, M. (2009) The New Lean Toolbox. Towards Fast, Flexible Flow. Buckingham, UK: Picsie.

    Google Scholar 

  • Brown, G. and O’Rourke, D. (2007) Lean manufacturing comes to China. International Journal on Occupation and Environmental Health 13 (3): 249–254.

    Article  Google Scholar 

  • Cantwell, J., Dunning, J.H. and Lundan, S.M. (2010) An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment. Journal of International Business Studies 41 (4): 567–586.

    Article  Google Scholar 

  • Chao, M.Ch.-H. and Kumar, V. (2010) The impact of institutional distance on the international diversity–performance relationship. Journal of World Business 45 (1): 93–103.

    Article  Google Scholar 

  • Chen, L. and Bo, M. (2008) How to make 5S as a culture in Chinese enterprises. Innovation Management 3: 221–224.

    Google Scholar 

  • Chin, K.S. and Pun, K.F. (2002) A proposed framework for implementing TQM in Chinese organizations. International Journal of Quality and Reliability Management 19 (3): 272–294.

    Article  Google Scholar 

  • Comm, C.L. and Mathaisel, D.F.X. (2005) An exploratory analysis in applying lean manufacturing to a labor-intensive industry in China. Asia Pacific Journal of Marketing and Logistics 17 (4): 63–80.

    Article  Google Scholar 

  • Cooney, R. (2002) Is ‘lean’ a universal production system? Batch production in the automotive industry. International Journal of Operations and Production Management 22 (10): 1130–1147.

    Article  Google Scholar 

  • Denzin, N.K. and Lincoln, Y.S. (1994) Handbook of Qualitative Research. London: Sage.

    Google Scholar 

  • Eden, L. and Miller, S.R. (2004) Distance Matters: Liability of Foreignness, Institutional Distance and Ownership Strategy. Bush School of Government and Public Service. Texas A&M University Working Paper 404.

  • Gamble, J. (2010) Transferring organizational practices and the dynamics of hybridization: Japanese retail multinationals in China. Journal of Management Studies 47 (4): 705–732.

    Article  Google Scholar 

  • Gaur, A.S., Delios, A. and Singh, K. (2007) Institutional environments, staffing strategies, and subsidiary performance. Journal of Management 33 (4): 611–636.

    Article  Google Scholar 

  • Geertz, C. (1973) The Interpretation of Cultures. New York: Basic Books.

    Google Scholar 

  • Giroud, A. (2014) MNEs in Asian business systems. In: M.A. Witt and G. Redding (eds.) The Oxford Handbook of Asian Business Systems. Oxford, UK: Oxford University Press, pp. 441–464.

    Google Scholar 

  • Hofstede, G. (2003) Culture's Consequences. Comparing Values, Behaviors, Institutions, and Organizations Across Nations. London: Sage.

    Google Scholar 

  • Hofstede, G., Van Deusen, C., Mueller, C. and Charles, T. Business Goals Network (2002) What goals do business leaders pursue? A study in fifteen countries. Journal of International Business Studies 33 (4): 785–803.

    Article  Google Scholar 

  • Holweg, M. (2007) The genealogy of lean production. Journal of Operations Management 25 (2): 420–437.

    Article  Google Scholar 

  • Jackson, G. and Deeg, R. (2008) Comparing capitalisms: Understanding institutional diversity and its implications for international business. Journal of International Business Studies 39 (4): 540–561.

    Article  Google Scholar 

  • Jensen, R. and Szulanski, G. (2004) Stickiness and the adaptation of organizational practices in cross-border knowledge transfers. Journal of International Business Studies 35 (6): 508–523.

    Article  Google Scholar 

  • Joosten, T., Bongers, I. and Janssen, R. (2009) Application of lean thinking to healthcare: Issues and observations. International Journal for Quality in Health Care 21 (5): 341–347.

    Article  Google Scholar 

  • Jürgens, U. (2003) Characteristics of the European automotive system: Is there a distinctive European approach? Discussion Paper, Research Unit: Knowledge, Production Systems and Work 2003(3). Berlin: Social Science Research Centre.

  • Kostova, T. (1999) Transnational transfer of strategic organizational practices: A contextual perspective. Academy of Management Review 24 (2): 308–324.

    Google Scholar 

  • Lee, C.Y. (2004) Perception and development of total quality management in small manufacturers: An exploratory study in China. Journal of Small Business Management 42 (1): 102–116.

    Article  Google Scholar 

  • Li, Y. and Sheldon, P. (2011) Skill shortages: Where labour supply problems meet employee poaching. In: P. Sheldon, S. Kim, Y. Li and M. Warner (eds.) China’s Changing Workplace: Dynamism, Diversity and Disparity. London: Routledge, pp. 129–143.

    Google Scholar 

  • Liker, J. and Meier, D. (2007) 'Toyota Talent': Developing Your People the Toyota Way. New York: McGraw-Hill.

    Google Scholar 

  • Lincoln, Y. and Guba, E. (1999) Establishing trustworthiness. In: A. Bryman and R. Burgess (eds.) Qualitative Research. London: Sage, pp. 397–444.

    Google Scholar 

  • Netland, T. (2013) Exploring the phenomenon of company-specific production systems: One-best-way or own-best-way? International Journal of Production Research 51 (4): 1084–1097.

    Article  Google Scholar 

  • Ohno, T. (1988) Toyota Production System: Beyond Large-Scale Production Productivity. New York: Productivity Press.

    Google Scholar 

  • Oliver, N., Delbridge, R. and Lowe, J. (1998) Inside the Chinese Automotive Industry: The Third Lean Enterprise Report. London: Andersen Consulting.

    Google Scholar 

  • Paolini, A., Leu, B. and Chinn, R. (2005) Exporting lean to China: Know before you go. http://www.6sq.net/question/53753, accessed 4 December 2014.

  • Peng, M.W., Wang, S.Y.L. and Jiang, Y. (2008) An institution-based view of international business strategy: A focus on emerging economies. Journal of International Business Studies 39 (5): 920–936.

    Article  Google Scholar 

  • Redding, G. and Witt, M.A. (2007) The Future of Chinese Capitalism: Choices and Chances. Oxford, UK: Oxford University Press.

    Google Scholar 

  • Redding, G. and Witt, M.A. (2009) China’s business system and its future trajectory. Asia Pacific Journal of Management 26 (3): 381–399.

    Article  Google Scholar 

  • Sandberg, Å. (2007) Enriching Production. Perspectives on Volvo’s Uddevalla Plant as an Alternative to Lean Production. Aldershot, UK: Avebury.

    Google Scholar 

  • Schmidt, C., Mansson, S. and Dolles, H. (2013) Managing talents for global leadership positions in MNCs: Responding to the challenges in China. Asian Business & Management 12 (4): 477–496.

    Article  Google Scholar 

  • Schwandt, T. (2007) The Sage Dictionary of Qualitative Inquiry. Thousand Oaks, CA: Sage.

    Book  Google Scholar 

  • Scott, W.R. (1995) Institutions and Organizations. London: Sage.

    Google Scholar 

  • Slack, N., Chambers, S. and Johnston, R. (2004) Operations Management. Harlow, UK: Pearson Education.

    Google Scholar 

  • Streeck, W. (1996) Lean production in the German automobile industry: A test case for convergence theory. In: S. Berger and R. Dore (eds.) National Diversity and Global Capitalism. Ithaca, NY: Cornell University Press, pp. 197–219.

    Google Scholar 

  • Taj, S. (2005) Applying lean assessment tools in Chinese hi-tech industries. Management Decision 43 (4): 628–643.

    Article  Google Scholar 

  • Voss, C.A. (2005) Alternative paradigms for manufacturing strategy. International Journal of Operations and Production Management 25 (12): 1211–1222.

    Article  Google Scholar 

  • Witt, M.A. and Redding, G. (eds.) (2014) China. Authoritarian capitalism. In: The Oxford Handbook of Asian Business Systems. Oxford, UK: Oxford University Press, pp. 11–32.

    Google Scholar 

  • Womack, J.P. and Jones, D.T. (2003) Lean Thinking: Banish Waste and Create Wealth in Your Corporation. New York: Free Press.

    Google Scholar 

  • Womack, J.P., Jones, D.T. and Roos, D. (1990) The Machine that Changed the World. New York: Rawson Associates.

    Google Scholar 

  • Wong, M. (2007) The role of culture in implementing lean production system. In: J. Olhager and F. Persson (eds.) IFIP International Federation for Information Processing, Vol. 246 Boston, MA: Springer, pp. 413–422.

    Google Scholar 

  • Yin, R.K. (2003) Applications of Case Study Research. London: Sage.

    Google Scholar 

  • Yu, J. and Meyer-Ohle, H. (2008) Working for Japanese corporations in China: A qualitative Study. Asian Business and Management 7 (1): 33–51.

    Article  Google Scholar 

  • Zimmermann, A., Holman, D. and Sparrow, P.R. (2003) Unravelling adjustment mechanisms: Adjustment of German expatriates to intercultural interactions, work, and living conditions in the people’s Republic of China. International Journal of Cross Cultural Management 3 (1): 45–66.

    Article  Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Angelika Zimmermann.

Appendix A

Appendix A

Table A1

Table A1 Participants

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Zimmermann, A., Bollbach, M. Institutional and cultural barriers to transferring Lean production to China: Evidence from a German automotive components manufacturer. Asian Bus Manage 14, 53–85 (2015). https://doi.org/10.1057/abm.2014.18

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1057/abm.2014.18

Keywords

Navigation