The Sinification of Western Company Forms in Modern China: A Hybridization of Sinospheres and Anglospheres

• Main Author: CHUNG, Wai Keung
• Format: text
• Language: English
• Published: Institutional Knowledge at Singapore Management University 2010
• Subjects: Chinese; business enterprises; corporate forms; family business; Asian Studies; Entrepreneurial and Small Business Operations
• Online Access: https://ink.library.smu.edu.sg/soss_research/1029; https://ink.library.smu.edu.sg/context/soss_research/article/2285/viewcontent/Chung2010SinificationWesternCompany.pdf
• Institution: Singapore Management University

Western company or corporate forms were introduced to China for more than a hundred years. What has been the impact of this Western institution on the traditional mode of Chinese family business? At the same time, has the traditional Chinese mode of doing business changed any of the fundamental features of this Western institution, and in the end created corporate forms with “Chinese characteristics”? This paper uses the historical sociology and economic sociology perspectives to analyse the interaction between traditional Chinese business and Western corporate forms during the late 19th earlier 20th century modern China. Traditional Chinese business convention for sure disappeared significantly because of the introduction of the Western corporate forms, but notably some of these practices were able to survive because of the same reason. There are always similarities and differences in the processes of historical development. The establishment of Western corporate forms in China, on the one hand has shared similarities with countries with similar experiences, but on the other hand, has also provided opportunity for innovation coming out from its interaction with the traditional Chinese business. Because of this innovative use of the corporate forms, family business in Chinese societies has since then been able to develop further. In the end, the sinification of the Western company forms represents a hybridisation of Sinosphere and Anglosphere — both sides were modified and a new model was formed.