How Cultural Determinants May Affect HRM: The Case of Italian Companies in China

Human resources (HR) face several dilemmas on the international stage. Often, these dilemmas are related to cultural determinants that may deeply affect HR strategies and practices. The main aim of this study is to address the topic of cultural diversity within organisations operating in highly divergent cultures. In particular, the analysis will be focused on the strategies and practices implemented by Italian companies to manage HR in China, by estimating the growing influence of Chinese cultural values on the dynamics and complexity of intercultural human resource management (HRM) and suggesting that different approaches should characterise companies’ strategies when dealing with distinct cultural backgrounds. The study, which was undertaken with 149 executives from Italian companies in Mainland China, demonstrates the degree of knowledge of a cultural environment has a direct correlation with HR strategies and practices. The results show that a better knowledge of cultural values of Chinese individuals may represent a strategic tool to Italian companies in China. The findings of the study have potential to help decision makers of Italian companies to develop strategies able to overcome cultural barriers, to formulate effective HRM policies and to increase company competitive advantage.