CULTURE AND MANAGEMENT: GOOGLE IN CHINA Google has enjoyed spectacular success since its founding in 1998. The search engine fim operates in more than 50 countries and established operations in China in 2006. Google brought its laid-back Silicon Valley culture to sprawing headquarters in Beiing, which was outfitted with a fully equipped gym, foosball tables. video games and other frills. Google clashed with the Chinese Government, which closely monitors business in China. especially firms from abroad. As a condition for entering China. Google agreed to censor certain types of search results, especially those that criticise the Chinese Government. Google pushed the limits by complying as little as possible with government orders to block search engine content. Google's Chinese employees experienced difficulties adjusting to the firm's freewheeling style. Many were uncomfortable with a company policy that requires employees to devote 20 per cent of their work time to developing independent projects. Google blocked its Chinese engineers from accessing the firm's software code. The policy emerged in response to China's loose approach to private property rights, which encourages access to foreign technology and know-how. Google hired a Chinese executive to manage the firm's government relations. However, communication gaps arose partly because she could not speak English. She criticised Google corporate management for not working hard enough to understand Chinese customs. Later, she was fired after giving free iPods to government officials. Giving expensive gifts to public officials is often viewed as a form of bribery in Western cultures, but is more accepted in parts of Asia
Management grew alarmed when Chinese hackers accessed sensitive information in Google's private files. In some cases, Chinese Government officials hacked the Gmail accounts of Chinese dissidents and human rights activists. A government official launched a personal campaign against the firm when he Googled himself and found an abundance of critical meterial. Eventually, Google senior management grew weary of China and decided to stop complying with government censorship rules. In 2010. Googl e withdrew from mainland China. Google's China personnel were shocked by this decision, which was reached without gaining their input or support. Many had begun to think of themselves as members of the Google family' Google's experience in China demonstrates the importance of culture in international business. China has a collectvist mndset, which emphasises conformit, duty, prescribed roles and sacrifice for the greater good. Family-style management emphasises personal relations and leaders concerned for employee happiness. Families are at the centre of Chinese culture. In society, family members know their place and maintain the family name. Younger generations respect and obey their elders. At one time, a father could legally kill his children if they displeased him. Such is the cultural context in which Google confronted the Chinese Government The Chinese are long-term-oriented and invest much time in planning business ventures They emphasise patience. respect for tradition and hard work. They avoid conflict and favour societal harmony. The focus on harmony derives from teachings of the ancient philosopher Confucius, who urged a non-assertive approach to resolving differences. China is a high- context, relationship oriented culture. Maintaining strong, long-term relationships is essenti to developing trust. Major decisions are rarely taken without informing employees first. Guanxi refers to informal personal relationships that emphasise reciprocal obligations and the exchange of favours. In China, guanxi profoundly influences commercial activities and organisational behaviours. An individual or firm that receives favours from another has a moral obligation to reciprocate and maintain the relationship. In China, government officials did many favours for Google, starting with allowing it to launch its business there. Skilful guanxi can open dialogue, build trust and facilitate the exchange of favours that augment business performance In 2012, Google renewed efforts to enter China, acknowledging that it cannot afford to miss out on the world's biggest internet market. Top management has softened its position. and is seeking to introduce new services in China, especially those not subject to censorship.