Indian companies with global ambitions are better governed than their Chinese counterparts, a Harvard professor says. But in competition, it may not matter
Are companies in India and China making progress in developing talent in the same way that Western multinationals do?
They're both making progress. But Indian companies are significantly further along, partly because India never had a Cultural Revolution as China did, which wiped out much of the business class. It had a residue of corporations already in existence. Some companies are 100 or 150 years old and they have an established way of doing things.
Where are the Chinese when it comes to managing multiculturally?
Utterly zero. It's hard to blame them because there's a language barrier also. You may remember the acquisition of a German company, Schneider, by TCL in 2002, which was based in Shenzhen. It was a disaster. Then they followed that disaster with a bigger disaster in 2004, by buying assets from Thomson (TMS) in France, which they also destroyed. A lot of the internal tensions were about language and cultural barriers, and questions like, Can a Frenchman report to a Chinese? And what if the French guy makes more than the Chinese guy? Holstein is an independent business journalist and author in New York. info@goliveideas4.com >> http://www.goliveideas4.com
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