||The impressive economy development of China has attracted more and more Scandinavian companies to enter into this huge market. There are more than 120, 95, and 88 companies from Denmark, Sweden, Norway respectively operating in China at present. And the investments from Scandinavian countries are increasing tremendously since 1999.
Scandinavian countries are front-runners in environmental management field, while China is a developing country facing great environmental challenges. The way Chinese subsidiaries of Scandinavian companies conduct environmental management practice will be very meaningful and thought-provoking. Therefore, effect of headquarter, cultural differences and local laws & regulations to the environmental management practice of the Chinese subsidiaries are studied through several cases.
An investigation supported by DANIDA shows that environmental management in more than 50% surveyed subsidiaries is influenced by the Headquarter. Hofstede has pointed out the cultural differences among Scandinavian cultures and Chinese culture in five culture dimensions of power distance, individualism & collectivism, masculinity & femininity, uncertainty avoidance, long/short term orientation, as well as the different outcomes due to the cultural differences. By considering that the cultural differences are shown through intermediate of employees, outcomes related to human resource management are selected and analyzed. Background and present situation of local Chinese laws & regulations are illustrated.
Assumptions are made based on the above background and theories. These assumptions are:
1. There are no major differences in Chinese subsidiary behind the Scandinavian subsidiary in EMP.
2. Despite the fact that HQ effect is an important factor to EMP, generally speaking, the effect is limited to tactical level.
3. Modification of responsibilities is needed when the environmental management model transferred to Chinese subsidiary
4. Training strategy, methods and objective are modified in transferring the training program to Chinese subsidiary.
5. Performance appraisal of employees who conduct environmental management practices in Chinese subsidiaries is different from Scandinavian subsidiaries due to cultural differences
6. Reward system for employees who conduct environmental management practice is different in Chinese subsidiaries and in Scandinavian subsidiaries.
7. Impact of local laws & regulations is more obvious, which depicts itself in the following two aspects:
a) Enforcement of present laws & regulations
b) New laws & regulations
8. Chinese subsidiaries of Scandinavian companies will follow the more strict requirements when there are gaps between the Chinese and Danish regulations.
Five Danish companies are selected to conduct case studies through interviews, phone and email follow-up. Data is collected and analyzed according to the pattern-matching model. And then cross company analysis is conducted. The analysis result is compared with the above-listed assumptions. And it shows that assumption 1,2,7,8 are supported by the findings, while 3,4,5,6 are not.
Based on comparison result, conclusions are made:
c HQ has a strong influence to the EMP of Chinese subsidiaries of Scandinavian companies, but only limited to tactical level.
c Hofstede¡¦s theory on cultural differences is mainly used to discuss the effect on human resource management during environmental management model transferring. Cultural differences between the Scandinavian Chinese subsidiaries are not considered during EMP model transference
c An organization in Headquarter level as well as in subsidiary level can be considered as platform for environmental management practice model transferring without modification
c Local laws & regulations are reinforcing in the implementation of present laws & regulations and in the future legislations. Subsidiaries of Scandinavian companies will follow the upper requirements when there are differences between local Chinese legislation and Danish legislation in environment management field.
Furthermore, suggestions during the environmental management practice model transferring from Scandinavian subsidiary to Chinese subsidiary are put forward in the thesis.