Cross-Cultural Management of Chinese MSMEs in Electronics Industry

Abstract

This research aimed to study: 1) To analyze the role of cultural adaptation as a mediating factor between cultural differences and corporate performance. 2) To examine the moderating effect of cultural intelligence on the relationship between cultural differences and corporate performance. 3) To provide empirical insights on how MSMEs can leverage cross-cultural management strategies to enhance their operational efficiency and competitive advantage. 4) To identify the key challenges faced by MSMEs in cross-cultural settings and propose managerial solutions. This study adopted a quantitative research method. A total of 550 valid responses were collected from managers and employees working in micro, small, and medium-sized enterprises (MSMEs) in Shanghai’s electronics industry, all of whom were engaged in cross-cultural work environments, selected by convenience sampling. The instrument for collecting data was a structured questionnaire developed from validated scales measuring cultural differences, cultural adaptation, cultural intelligence, and corporate performance. Analysis of data was conducted by descriptive statistics, factor analysis, and regression modeling. The research results were found as follows: 1) Cultural adaptation significantly mediates the relationship between cultural differences and corporate performance. 2) Cultural intelligence positively moderates both the link between cultural differences and adaptation and the relationship between adaptation and performance. 3) Empirical findings support that MSMEs equipped with cultural competence achieve greater competitiveness and internal efficiency. 4) Challenges identified include miscommunication, conflicting management styles, and cultural value misalignment; solutions include cultural training, adaptive communication frameworks, and inclusive management practices.