Chinese companies can teach the West responsiveness, flexibility, improvisation and speed, say Thomas Hout and David Michael, writing for the Harvard Business Review.
China’s economy is a constantly evolving ecosystem in which private companies struggle with rapid urbanisation, a huge rural market, ingrained corruption, and frequent boom and bust cycles. Many small businesses fail, but the fittest of the species are “resourceful, flexible, and fierce competitors”, say the authors. These Chinese companies may well be the vanguard of a new era in which agility is key.
Hout and Michael have studied more than 30 large privately owned Chinese companies over a period of five years.