Knowledge Transfer from Germany to China (PDF)

Many western companies went East and started subsidiaries also in China to use large costs reduction potentials and to get new market shares at potential 1.3 billion customers. This hype was justified with the resulting success of the companies and the raise of China to the world's biggest economy. Starting new business in China is not only related with success and increasing profit, because before being successful, a functional factory has to be set up. This includes the setup of a suitable and efficient Quality Management System (QMS) and the according Knowledge transfer. This sounds easy, but not all of the enthusiastic firms made it through the built-up phase.
This Study researches the theoretical background of Chinese business environment, according to the High Level Structure needs of the ISO 9001, and then compares the culture and also investigates the individual network system. This theoretical analysis is then merged with the quantitative and qualitative results of an expert survey, of German experts of companies with comparable industrial products and QMS. The result is that the cultural differences are big enough to be considered, when making the strategy plan. Especially hierarchical and group social differences make it necessary that the right people have to be prepared to be send to the subsidiary for a certain period.
For the Quality topics, the focus should be on the freedom for process adjustments, content of inspection plans, audit strategies, supplier management and failure analysis. Here has to be created and trained a more sensitivity not only to push colleagues or suppliers, but also to develop them. Cost pressure makes it necessary to produce also more complex products in China, why the suppliers also have to be fit for this new challenge. In the end it can be said that the successful startup mainly depends on the right people, placed in higher hierarchical positions, who train the new colleagues on site continuously and with great patience.