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An exploration of Japanese employees’ experiences at Chinese MNCs in Japan

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Content An Exploration of Japanese Employees’ Experiences at Chinese MNCs in Japan
By
Takeo Kamai
Rossier School of Education
University of Southern California
A dissertation submitted to the faculty
in partial fulfillment of the requirements for the degree of
Doctor of Education
December 2024

© Copyright by Takeo Kamai 2024
All Rights Reserved

1
The Committee for Takeo Kamai certifies the approval of this Dissertation.
Committee Member Ruth Chung
Committee Member Marc Pritchard
Committee Chair Robert Filback
Rossier School of Education
University of Southern California
December 2024

ii
Abstract
Multinational corporations (MNCs) encounter difficulties when expanding internationally into
new markets. This study aimed to gather insights on Chinese MNCs as they attempt to
effectively integrate into the Japanese markets through the viewpoints of local Japanese
employees. The goals of this research are to shed light on the complexity inherent in crosscultural management and to offer practical recommendations for stakeholders in Chinese
companies desiring to set a firm market presence in Japan. This mixed methods study used a
survey to address the research questions and 279 Japanese employees working at Chinese MNCs
participated in the survey. The study analyzed the descriptive and inferential statistics, along
with responses to open-ended questions. The survey revealed that employees' perceptions of their
roles vary, with factors like decision-making authority, experience, and job type influencing their
views. Japanese host country nationals, who act as cultural interpreters, communication
managers, talent managers, and internal change agents, facilitate cross-cultural communication,
lead change projects, promote local talent, and interpret documents. The study also identified
language skills, training, qualifications, monetary rewards, and improved organizational
communication as motivational factors and recommended improvements to enhance local
Japanese employee knowledge transfer and strengthen Chinese MNCs performance. These
findings indicate that a well-structured cross-cultural management strategy can enhance the
performance and adaptability of Chinese MNCs in Japan. This strategy can empower local
employees, improve job satisfaction, and contribute to a cohesive workforce. The study calls for
stakeholders to re-evaluate their approaches to cross-cultural integration, fostering harmonious
collaboration between Chinese and Japanese employees, and creating a mutually beneficial
environment.

iii
Keywords: globalization, multinational corporations, international management, host country
nationals, knowledge, motivation, organizational support, cross-cultural knowledge transfer

iv
Dedication
To my parents, I could not have achieved this without your unconditional love and support
throughout the years.

v
Acknowledgments
I never would have imagined that the dissertation process would be so collaborative, and
I am deeply indebted to all the people who have helped me throughout this journey. Dr. Robert
Filback, Dr. Ruth Chung, and Dr. Marc Pritchard have consistently guided, supported, and
engaged with me in refining this work, and their kindness and encouragement throughout the
process have been a tremendous source of motivation. In addition, I would like to thank Dr.
Heather Davis, Dr. Courtney Malloy, Dr. Jihye Kwon, and Dr. Ayesha Madni for helping me
understand the dissertation process and for putting me on the right track. I am grateful for all of
the professors who shared with me their wealth of knowledge and insight to make this program
such a meaningful and genuine experience.
This journey would not have been possible without the support from my senior
management team, who let me apply to this program, and my colleagues, who were graciously
understanding and always there to lend a helping hand. In addition, to all my dear friends who
gave me moral support both implicitly and explicitly, I know that I have a lot of make-up time
that I need to fulfill in the upcoming years.
Finally, without the friends I made in Cohort 24, this experience would not have been as
impactful and meaningful. Hearing the personal experiences of people from different walks of
life and going through this program together helped me expand my world. I would like to thank
everyone for being who they are and reminding me to always “Fight On.”

vi
Table of Contents
Abstract.................................................................................................................................. ii
Dedication.............................................................................................................................. iv
Acknowledgments................................................................................................................... v
Chapter One: Overview of the Study ........................................................................................ 8
Purpose of the Study................................................................................................... 12
Research Questions.................................................................................................... 13
Methodology.............................................................................................................. 13
Significance of the Study............................................................................................ 14
Definition of Terms.................................................................................................... 15
Organization of the Study........................................................................................... 18
Chapter Two: Review of the Literature................................................................................... 19
Globalization and MNCs............................................................................................ 19
China’s Expansion and Recent Trends........................................................................ 25
Japan: Overview, China–Japan Relations, and MNCs.................................................. 48
Theoretical Framework............................................................................................... 60
Conceptual Framework............................................................................................... 87
Summary ................................................................................................................... 89
Chapter Three: Methodology ................................................................................................. 90
Research Questions.................................................................................................... 90
Population and Sample............................................................................................... 91
Participants................................................................................................................ 91
Instrumentation.......................................................................................................... 92

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Data Collection Procedures......................................................................................... 93
Data Analysis............................................................................................................. 94
Ethical Considerations................................................................................................ 95
Limitations and Delimitations..................................................................................... 96
Postionality................................................................................................................ 98
Reliability and Validity .............................................................................................. 99
Chapter Four: Results or Findings........................................................................................ 101
Participants.............................................................................................................. 101
Results for Research Question 1................................................................................ 104
Results for Research Question 2................................................................................ 118
Results for Research Question 3................................................................................ 138
Summary ................................................................................................................. 146
Chapter Five: Discussion..................................................................................................... 148
Findings................................................................................................................... 148
Implications for Practice........................................................................................... 166
Recommendations for Future Research..................................................................... 174
Conclusions............................................................................................................. 176
References.......................................................................................................................... 179
Appendix A: Survey............................................................................................................ 215
Appendix B: Tables............................................................................................................. 224

8
Chapter One: Overview of the Study
Multinational corporations (MNCs) encounter difficulties when expanding internationally
into new markets (Perlmutter, 2017). The success in international expansion is crucial to MNCs
for various reasons, such as to promote growth through the pursuit of financial performance and
access to new markets and resources (Abdelzaher et al., 2023), increase shareholder value
through higher returns (Berry, 2006), and diversify investment opportunities in different markets
(Doukas & Travlos, 1988). International expansion also fosters innovation and addresses
sustainability issues by compelling MNCs to tap into different knowledge links and
technological resources (Almeida & Phene, 2004), implement sustainable business practices,
support local communities, mitigate environmental impacts, and adapt to the growing importance
of ethical and sustainable business activities (Burritt et al., 2020). Success in international
expansion maintains the competitiveness of MNCs and contributes to the global market.
Conversely, the consequences of MNCs’ inability to develop globally can be profound.
One disadvantage is the potential loss of market share and competitive advantage as a result of
limited geographic reach and exposure to a variety of markets, which can adversely affect the
performance of subsidiaries (Mudambi & Navarra, 2004). If a company chooses not to expand
internationally, it may forgo opportunities for revenue generation and growth, leading to adverse
effects on its overall financial performance (Hilmersson & Johanson, 2016). The cost of agency
debt may have a particularly negative financial impact on multinational companies that decide
not to expand internationally (Doukas & Pantzalis, 2003). This situation can lead to higher
borrowing costs and poorer financial performance compared with companies that have
successfully globalized. In addition, MNCs may be less able to manage risks arising from the

9
lack of internationalization, such as exchange rate uncertainties, which can affect stock market
value (Fisch & Puhr, 2021).
One important factor that can influence the success or failure of the international
expansion of a business is its ability to navigate cultural differences (Engert et al., 2019).
Cultural distance has a significant detrimental impact on subsidiary performance and is a factor
that may provide difficulties for MNCs to successfully expand outside (Beugelsdijk et al., 2017).
While the international landscape offers room for innovation and new markets, dealing with
cultural differences requires resources and time, which may cause inefficiencies as well as
misjudgments within the company (Kim & Gudykunst, 2005). Therefore, MNCs should carefully
consider the trade-off between the benefits and costs of bridging cultural distance.
Corporations that do not venture into new markets, however, run the risk of missing out
on the benefits of cultural diversity and innovation opportunities that come from operating in
different cultural contexts. Cultural diversity can lead to innovation, enabling creativity as well
as improving problem-solving abilities in the workplace (Hong & Page, 2004). Facilitating a
diverse work culture where people come from different backgrounds can stimulate creativity and
deep understanding through diverse perspectives (Hong & Page, 2004). Corporate cultures that
embrace the diversity of thought and experience can effectively capture and utilize insights that
may not be available in homogenized environments. More beneficial to multinational
entrepreneurs is the fact that operating in different cultural contexts allows them to adapt their
products, services, and business practices to suit the local markets, which leads to higher market
penetration and competitiveness (Taras et al., 2010). Hence, through the enlargement of the
markets and acceptance of cross-cultural differentiation, MNCs can not only mitigate the risks of
cultural division but also use it for continuous firm growth and innovation. Moreover, for

10
stakeholders, such as investors, neglecting global expansion could indicate a firm’s limited
ability to derive additional benefits from current local activities (Doukas & Travlos, 1988).
As such, global expansion carries both strong incentives and inherent challenges,
especially with respect to the successful adjustment to cultural differences. Many companies,
including large and well-known Western brands, have decided to expand but faced challenges in
doing so. Expansions—such as Starbucks in Israel, Walmart in Germany, and Airbnb in China—
have faced some significant challenges and, in some cases, failures in developing an efficient
business in the host market. Although these companies had been successful in their home
countries, they did not foresee the challenges that cultural, legal and consumer behavior
differences would entail (Read, 2022). For instance, Starbucks failed to modify its menu and
ambiance to suit the local Israeli market, resulting in low popularity and shop closures (Barnea,
2011). Similarly, German consumers rejected Walmart because they preferred smaller stores
located in their neighborhoods to the large-scale retail model that the company was offering
(McDonald, 2017). Airbnb ran into difficulty with regulatory frameworks and fierce competition
from indigenous rivals in China’s rapidly growing sharing economy ecosystem, hampering its
expansion endeavor (Deng & Qu, 2022). These cases point to the significance of knowing how
to handle cultural incongruities and market dynamics when coming up with global expansion
approaches to avoid incurring catastrophic results or staining brand reputation. For MNCs to
thrive in a globalized economy and reap the benefits of operating in different markets, successful
international assimilation is crucial (Fatehi, 2008).
Owing to globalization and its domestic policies, China has developed into an economic
giant over the past 40 years and is now the second-largest economy in the world. Since
implementing economic reforms in 1978, China has had an average annual GDP growth rate of

11
around 95% between 1979 and 2018—the fastest sustained expansion of a major economy in
history according to the World Bank (Hang, 2017). However, like any other country seeking
global growth, the country’s MNCs have struggled to successfully assimilate into the local
culture while expanding their global reach. For example, geopolitical concerns and regulatory
barriers prevented Alibaba’s e-commerce platform Taobao from gaining a foothold in the Indian
market (Ray, 2020). The company’s efforts to enter the U.S. market also encountered difficulties
in gaining the trust of American consumers and brand recognition (Thompson, 2014).
Furthermore, LeEco, a technology conglomerate, overextended itself by entering numerous
markets simultaneously, including the United States, India, and Russia, leading to financial
difficulties and eventual failure (Chen, 2017). These examples illustrate that despite its
unprecedented growth, China also faces challenges in integrating into local economies.
Notwithstanding China’s remarkable economic growth and efforts at global expansion,
its MNCs have experienced notable failures at integrating into the Japanese market. For example,
Huawei and Xiaomi have run into regulatory obstacles and encountered tough competition
against the already firmly established Japanese firms in telecommunications and electronics
(Tigé, 2019). Cultural differences and consumer preferences in Japan also impede the successful
entry of Chinese MNCs to the Japanese market (Yang et al., 2009). These problems shed light on
the complexity of cross-border expansion and the demand for more research and investigation on
the relations between Chinese MNCs and the Japanese business market. The present study aims
to bridge this gap in research by exploring the potential role of host country nationals (HCNs), or
Japanese local employees, in the successful expansion of Chinese MNCs in Japan.

12
Purpose of the Study
The purpose of this study is to gather insights on the challenges faced by Chinese MNCs
as they attempt to effectively integrate in Japanese culture as a part of international expansion
through the viewpoints of Japanese employees. The goals of this research are to shed light on the
complexity inherent in cross-cultural management and to offer practical recommendations for
stakeholders in Chinese companies desiring to set a firm market presence in Japan. Learning the
unique hurdles and openings presented by the Japanese business landscape forms an important
core requirement for Chinese MNCs to create effective measures that will help with smooth
integration and sustainable development. Based on the analysis of the above factors, the study
intends to offer recommendations that will improve the viability of Chinese companies when
they are engaging in business in the Japanese market. This study clarifies the challenges and
opportunities that are involved in the integration process, which will ultimately contribute to the
body of knowledge on cross-cultural management and global business interactions between
China and Japan, thus advancing the understanding of the dynamics that shape them.
The study’s target population consists of HCNs working for Chinese MNCs in Japan.
HCNs are local workers employed by multinational firms in subsidiaries or branch offices
located in a nation other than the corporation’s home country (Vance, 2014). The focus is on
Japanese employees working for Chinese MNCs in Japan who physically reside and work in
Japan. While the ideal target for the problem of practice would be the strategy leaders overseeing
the expansion of Chinese MNCs, this would be a challenge to do as they are all based in
mainland China, and not stakeholders accessible to the researcher. Meanwhile, HCNs play a
crucial role in the successful integration of MNCs owing to their experience and understanding
of the local market (Gaur & Lu, 2007) and represent a valuable stakeholder in the investigation

13
of the problem of practice. Therefore, this research conducts a survey of the lived experiences of
Japanese employees working in Chinese MNCs expanding in Japan.
Research Questions
1. What are the knowledge, motivation, and organizational assets and challenges of
Japanese employees with respect to their work in Chinese MNCs?
a) What are the demographic group differences in knowledge, motivation, and
organizational support?
b) What is the relation between knowledge, motivation, and organizational support
with the HNCL components?
2. Which HCN liaison role components do Japanese employees report practicing in their
work in Chinese MNCs?
a) What are the demographic group differences within the HCNL components?
b) Which HCNL components have the most room for Chinese MNCs to improve to
enhance organizational performance?
3. What themes and strategies do Japanese employees recommend to enhance their
experience and effectiveness with working in Chinese MNCs?
Methodology
This study uses a convergent mixed methods survey design to address the research
questions. According to Creswell and Creswell (2016), a convergent mixed-methods design is a
type of mixed-methods research methodology in which the researcher simultaneously collects
and examines quantitative and qualitative data, integrates the results, and then draws conclusions
using both types of data. The goal of a convergent design is to combine the benefits of both
quantitative and qualitative methods to gain more thorough and in-depth knowledge of the

14
subject of study. Stronger conclusions and meta-conclusions result from the fact that the design
helps identify existing discrepancies and parallels in the research findings (Younas et al., 2023).
This design thus enables the researcher to gain more comprehensive, validated, and
contextualized knowledge about the study topic by combining quantitative and qualitative data
(Demir & Pismek, 2018). This survey includes both Likert-style items, analyzed using
descriptive and inferential statistics, and open-response questions, analyzed quantitatively. In this
manner, the study gathered both numerical data and qualitative responses in a structured manner
for analysis (Robinson & Leonard, 2018). To address the research questions, the study recruited
279 Japanese employees working at Chinese MNCs to participate in the survey. The researcher
opted against other overly time-consuming qualitative methodologies, such as interviews with a
large sample size (Merriam & Tisdell, 2015).
Significance of the Study
This study holds the potential to provide insights on the gaps for MNC performance in
host countries from the perspective of HCNs (Japanese employees) of Chinese MNCs in Japan.
In addition to examining more closely the social acceptability of MNCs in their host countries,
researchers and practitioners are interested in elucidating how MNCs engage with host countries
to capitalize on knowledge production (Almeida & Phene, 2004; Yu & Lindsay, 2017). The
current study would specifically provide value to those academics and professionals with an
interest in China and Japan.
Business leaders and managers could also benefit from this study. Researchers have
already studied the effects of cultural distance, foreign experience, institutional distance, and
other characteristics on the performance of MNCs in host countries (Borah et al., 2023; Khalid,
2022). However, no study has specifically examined Chinese MNCs or Japan. This study can

15
help executives understand the intricacies of global trade and human capital management
(Zaharie et al., 2020), as well as provide important perspectives for Chinese MNCs in Japan. The
ultimate goal of this study is to provide further context in terms of strategic advice for decision -
making and localization methods for those interested in the success of Chinese MNCs in Japan.
Definition of Terms
This section defines some of the key terms used in this study. These terms could have
different meanings in different contexts, which, if confused, may lead to misinterpretations and
misguided conclusions:
• Acculturation is the process of learning about the customs, beliefs, and behaviors of a
foreign culture and having this information affect one’s conceptualization of one’s
identities and social roles (Luedicke, 2015).
• Communication managers serve as language interpreters, moderators, facilitators, or
mediators of communications. They handle institutional and individual communication
demands among local staff, foreign workers, and the outside market (Vance, 2014).
• Conceptual knowledge refers to the understanding of categories and classifications, as
well as how they are related, providing a structured concept needed for effective
decision-making and problem-solving within an organization (Krathwohl, 2002).
• Cultural interpreters serve as conflict mediators, cultural guides, and equivocal
communicator clarifiers, according to the circumstances that emerge. Cultural interpreters
manage disputes arising from potential cultural differences and assist foreign workers in
adjusting to the work environment in their new nation. They also aid in explaining
unclear communication exchanges (Vance, 2014).

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• Cultural literacy includes understanding language as well as customs, cultural practices,
interpretation, teamwork, problem-solving, and reflection in a particular cultural setting
(Barrette & Paesani, 2018).
• Expectancy-value theory (EVT) is a theory that explains that individuals draw inspiration
to make decisions that will lead to success in a given area by a combination of their
subjective task values and expectations of those values (Eccles, 1983).
• Help-seeking refers to the proactive behavior of seeking help or support from other
people, such as colleagues, mentors, or any resource persons, when experiencing
difficulties or problems. This process plays a pivotal role in self-regulated learning and
has a high impact on the way individuals and organizations perceive complex issues or
problems (Undorf et al., 2021).
• Host country nationals (HCNs) are local workers employed by multinational firms in
subsidiaries or branch offices located in a nation other than the corporation ’s home
country (Vance, 2005).
• Host country national liaisons (HCNLs) refer to individuals employed by MNCs in a
foreign country who serve as liaisons between expatriates and the local workforce.
• Information resource brokers serve as informal organization knowledge sources,
organizational memory sources, and information boundary spanners. Information
resource brokers are also important channels for both explicit and tacit knowledge,
offering crucial data for understanding local organizational and market dynamics and
supporting decision-making (Vance, 2014).
• Internal change agents are involved with strategic change planning, organizational
change facilitation, and matching the aims of organizational change with the attitudes and

17
actions of local employees. The internal change agent also aids in overcoming employee
resistance to change and supports the implementation of change efforts (Vance, 2014).
• Knowledge is the “how and the when, the what, why, where and who” (p. 44) and the
means to accomplish performance goals (Clark & Estes, 2008).
• Metacognitive knowledge includes awareness and understanding of one’s own cognition
as well as knowledge about cognition in general (Krathwohl, 2002).
• Motivation is the inner, psychological force that gets individuals started, keeps
individuals going, and allows individuals to complete tasks (Schunk et al., 2014).
• Multinational corporations (MNCs) are companies with one or more overseas affiliates in
which the parent firm owns at least 10% of the business (Foley et al., 2021).
• Organizational support is the level of support the institution provides to overcome
obstacles, such as inadequate resources, flawed processes and procedures that hinder or
delay work, as well as inadequate resource levels (Clark & Estes, 2008).
• Procedural knowledge is the knowledge of the how of processes and includes the
understanding of categories, classifications, and their links, which are more intricate and
ordered knowledge types (Krathwohl, 2002).
• Self-efficacy theory (SET) is a motivational theory explaining an individual’s confidence
in their ability to carry out the behaviors required to achieve particular performance goals
and their capacity to exercise control over their own behavior, motivation, and
environment (Bandura, 1977, 1986).
• Talent manager is the individual responsible for spotting and developing both domestic
and foreign talent, as well as for talent retention, career development, and performance
management. In the context of a global workforce, the talent manager is essential to the

18
efficient deployment, retention, and development of talent, as well as to the facilitation of
performance management (Vance, 2014).
Organization of the Study
This study consists of five chapters. Chapter One provides an overview of the problem of
practice and its main ideas. Chapter Two discusses the literature on MNCs and globalization,
China and its MNCs, and Japan–China relations. Chapter Three explains the quantitative
methods and data analysis strategy used in this study. Chapter Four describes the descriptive and
inferential statistics of the quantitative survey and the analysis, as well as a discussion of the
findings. Chapter Five presents recommendations for Chinese MNCs on how they can better
engage Japanese employees in their organizations to increase employee commitment, motivation,
and satisfaction. It also discusses future research directions. It presents a detailed conclusion that
highlights the important findings, conclusions, and contributions of this study to cross-cultural
management in MNCs. It also includes the limitations of the research and suggests avenues for
future research.

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Chapter Two: Review of the Literature
This chapter presents an examination of the relevant research to elucidate the context and
variables that influence the challenges faced by Chinese MNCs in their host countries. The
following literature synthesis organizes the review into five sections based on the research
questions posed in Chapter One. The first section looks at the history of globalization and
MNCs. The second section examines the expansion of the Chinese economy, including China’s
historical background and current progress. The third section discusses the performance of
Chinese MNCs abroad, including their global expansion, performance, and difficulties
encountered. The fourth section focuses on the obstacles faced by MNCs in Japan and the
differences between the business cultures in China and Japan. Finally, the fifth section covers the
theoretical and conceptual foundations, which serves as a lens through which to view the
problem of practice.
Globalization and MNCs
This section presents a broad discussion of globalization and its impact on MNCs in
general. Presented herein are general definitions and brief histories of both terms. This part
discusses the effects that globalization has had on the global economy, both positive and
negative. It then delves into the opportunities available to MNCs through globalization and the
potential challenges MNCs must be prepared to face owing to the growing interconnectedness of
international economies, concluding with the roles that HCNs play in mitigating those
challenges. This overview will help the reader understand the types of and reasons for the
challenges faced by Chinese MNCs in their host countries.

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Globalization
Theodore Levitt coined the term “globalization”—as people know and use it today—in
1983 (Whitelock & Pimblett, 1997), although the etymology of the term and its introduction are
subjects of numerous discussions (James & Steger, 2014). Levitt undoubtedly brought the term
into mainstream discourse, emphasizing the interconnectedness of markets and homogenizing
effects of technology and consumer culture. However, scholars like Marshall McLuhan had
already been discussing the idea of the global village in the 1960s and possibly even earlier
(Chaplin & Mooney, 2017). Furthermore, disciplines such as sociology, economics, and political
science have heavily influenced the emergence of globalization, rendering its beginning difficult
to determine. A distinguishing characteristic of globalization is the low level of market
distinctions among nations as a result of technological and communication improvements
creating a so-called global village. Within this framework, businesses satisfy the convergent
tastes of consumers worldwide by creating standardized and high-quality items for international
distribution with little modification (Levitt, 1983). Certainly, globalization has had a huge impact
on numerous aspects of human interaction, such as health, education, social life, and, relevant to
this discussion, international trade and commerce.
According to the World Trade Organization (WTO), global merchandise exports in 1987
were at USD 2.49 trillion (WTO, 1988), but this figure reached USD 18.89 trillion in 2019
(WTO, 2020). The World Bank also noted that global foreign direct investment (FDI) in 1987
was approximately USD 139.5 billion (The World Bank, 1988) but had ballooned to an
estimated USD 1.85 trillion in 2019 (The World Bank, 2020). In addition to these remarkable
changes in exports and FDI, globalization has resulted in several other notable trends. One
significant development is the rise of global supply chains owing to advances in transportation

21
and communication technologies (Ganapati & Wong, 2023). This rise has led to increased
interdependence among countries and reshaped production processes. For example, goods like
mobile phones have their components manufactured in different countries before final assembly.
More recently, the expansion of digital technologies has caused the rapid growth of cross-border
e-commerce (Chen et al., 2024), which has enabled businesses to reach customers worldwide
with non-traditional goods (i.e., services).
However, these outcomes have varied implications on the global economy (Chen et al.,
2024). On the one hand, globalization has lifted many economies out of poverty. On the other
hand, it has come with many unforeseen challenges. Economists and analysts have raised
concerns about increased (unfair) competition, job displacement in some sectors, and
vulnerability to global economic shocks, such as the COVID-19 pandemic (Shiro & Butcher,
2022). Amid the uneven distribution of the benefits of globalization, debates have emerged on
income inequality within and among countries (Luongo et al., 2015). There have also been issues
related to environmental sustainability and social cohesion. As globalization intensifies,
policymakers and stakeholders face the growing challenge of ensuring that the process remains
sustainable and that the overall long-term benefits exceed the disadvantages.
Multinational Corporations
MNCs play a critical role in globalization. Foley et al. (2021) defined MNCs as
companies with one or more overseas affiliates in which the parent firm owns at least 10% of the
business. By leveraging networks across national economies and operating across many nations,
MNCs play a crucial role in linked economies by forming a single market and, as a result,
increasing transparency, competition, and relevance to a globally operated system through
acquisitions, strategic partnerships, and cross-border mergers (Kyove et al., 2021). Klienert

22
(2001) observed that MNCs account for 80% of commerce among countries and 80% of all
technology transfers. As Rugman and Verbeke (2004) noted, MNCs drive globalization as they
capitalize on new markets and resources, thereby increasing efficiency and profitability ; at the
same time, their cross-border activities spread technologies, create jobs, and spur economic
growth in host countries.
Opportunities for MNCs
In the current business context, MNCs have several opportunities to prosper in the global
economy as a result of globalization. For one, expanding their marketing efforts internationally is
a significant chance to reach a larger clientele and boost revenue and profits (Dunning, 2015).
Dunning (2015) emphasized that accessing a wide range of resources, including labor, raw
materials, and technology, has become rather easy anywhere in the world, which may lead to
reduced costs and increased production. Pankaj (2001) related that MNCs reduce risk by
concentrating all their resources in one place, and they achieve this by diversifying their
operations and assets across several countries. Rugman and Verbeke (2004) add ed that MNCs
can gain a competitive edge over rivals by diversifying their business beyond their home
countries. Furthermore, they may reap advantages from heightened creativity in novel products
and services that may arise owing to their exposure to many markets, cultures, and concepts
(Chesbrough, 2006; Christensen, 2013; Tidd & Bessant, 2020). Thus, MNCs have a wide range
of opportunities in the context of globalization. Collectively, these opportunities aid in the
expansion and strategic positioning of MNCs in the global economic environment.
Challenges Facing MNCs
While globalization gives MNCs access to many benefits, it also presents them with
numerous challenges. Harzing and Feely (2008) cited language and cultural barriers as

23
significant problems for MNCs operating in host nations. These cultural variations can be
difficult to comprehend and accommodate, failing which can impact business processes,
relationships between headquarters and subsidiaries, and communication. In their discussion of
the effects of cross-cultural variations on crisis management, Bajaj et al. (2021) drew attention to
the difficulties that arose in international crisis management during the COVID-19 pandemic
owing to linguistic and cultural obstacles. MNCs also encounter political and legal intricacies,
given that every nation in which they conduct business has distinct political and legal
frameworks, rules, and laws. Grewal et al. (2018) illuminated the role of political and legal
complexity in MNCs’ marketing strategies by elucidating how corporations and their
environment shape channel relations. MNCs may also have difficulties in fulfilling their social
and ethical obligations. In this regard, Chan and Ananthram (2020) stated that the lack of laws,
people’s reluctance to challenge the status quo, and governments’ lack of norms provide ethical
challenges for MNCs when making judgments. To satisfy various stakeholders, MNCs must
weigh the advantages and disadvantages of corporate social responsibility (CSR) (McWilliams &
Siegel, 2001). Finally, MNCs continue to have difficulties in attracting, nurturing, and keeping
talented and varied staff across many settings, languages, and cultures (Stahl et al., 201 2).
As such, MNCs and globalization are thoroughly intertwined. The latter phenomenon,
characterized by increased interconnectedness and the rise of global supply chains, has
immensely transformed international trade and commerce. MNCs, as crucial actors in
globalization, capitalize on new markets and resources and drive efficiency and economic
growth, but they face obstacles in their international operations, such as cultural barriers,
political complexities, and ethical dilemmas. These observations provide a peek into the
multifaceted challenges Chinese firms might encounter across various host countries.

24
Understanding these dynamics is essential for Chinese firms to effectively navigate the
complexities of operating in diverse global markets.
Roles of HCNs
HCNs are the local employees of an MNC in the nation in which it has a foreign
subsidiary (Vance, 2005). HCNs play a crucial role in the smooth operation and prosperity of
multinational companies, as they provide the knowledge, experience, and support needed to
operate successfully in foreign markets. Their functions as cultural advisors, knowledge
managers, and facilitators have a major impact on the overall performance and growth of
multinational companies (Gaur et al., 2007). As such, HCNs are critical to the success of MNCs’
international expansion.
Toh and DeNisi (2007) discussed the difficulties faced by multinational companies when
it comes to increasing the success rate of expatriate managers, using a model based on social
identity theory that emphasizes the role of HCNs in expatriate managers’ adjustment. HCNs help
expatriate managers adjust to life abroad, serve as a socialization agent for foreign nationals, and
make expatriate assignments in multinational companies more successful. To an extent, HCNs
help optimize the efficiency of expatriates’ missions. In addition, HCNs’ socializing behaviors—
displayed or not—can have an impact on expatriate adjustment, underscoring the importance of
HCNs’ collaboration with expatriates (Toh & DeNisi, 2007). The model highlights the
importance of understanding the social dynamics between HCNs and expatriates in the host
country, as well as the often-overlooked role of HCNs in the expatriates’ adjustment process.
In a study examining the impact of knowledge transfer from a corporate headquarters to a
subsidiary on the turnover of HCNs in MNCs and overall performance, Park et al. (2022)
revealed a major factor influencing HCN turnover in MNC subsidiaries: the mismatch between

25
received knowledge—transferred from the parent company to the subsidiary—and absorptive
capacity, or an organization’s ability to recognize, process, and apply new external information
to corporate goals. Moreover, knowledge transfer has a significant impact on employee turnover
(Park et al., 2022). As such, HCNs are critical to the success of MNCs because they help the
subsidiary learn and retain the information it receives, create and retain important expertise, and
contribute to the success of the MNC.
China’s Expansion and Recent Trends
The expansion of the Chinese economy has been a rollercoaster of triumphs and
challenges. This section presents a detailed and relevant history of China’s expansion and the
country’s gradual transition into the current observed trends. The main purpose of this section is
to identify the role that China’s economic background has played in its current economic status
vis-à-vis other economies.
Historical Context
Garnaut et al. (2018) noted that the modern policy changes in China began in 1978. The
country’s decision on the general policy of Gaige Kaifang or reform and opening up (Zhu,
2012), led by Premier Deng Xiao Ping, resulted in changes that aimed at shifting the country
from a centrally planned economy to a more market-oriented system, with the country
subsequently introducing a series of economic reforms (Li, 1997). To permit foreign commerce
and investment, China established special economic zones in coastal regions, providing
favorable laws and incentives to draw in international investment and technology transfer
(Yeung et al., 2009). To increase exports and draw in foreign investment, China also
implemented trade promotion programs, such as lowering trade barriers, developing sectors
focused on exports, and creating export processing zones (Lard, 1995). As the nation promoted

26
joint ventures and cooperation with international enterprises, FDI was another crucial factor in
fostering industrialization and modernization (Lin et al., 1997). These market-oriented pricing
reforms were and remain crucial because, as Garnaut et al. (2018) suggested, they provide
businesses greater freedom to choose how much to charge for their goods and services by letting
market forces take over from government-imposed pricing. Furthermore, China began to reform
its state-owned enterprises by allowing them to retain a portion of their profits, giving them more
autonomy over production decisions, and promoting performance-based incentives, among other
aspects of market competition (Morris et al., 2002). China’s open-door policy was a watershed
moment for the nation, opening the opportunity for foreign investment and economic expansion
that eventually helped advance China toward prominence in the international arena.
In the past two decades, China has made significant inroads into the global economic
arena. Trade liberalization brought about by China’s entry into the WTO in 2001 has improved
the performance of Chinese manufacturing companies (Brandt et al., 2017). A notable outcome
of such entry to the WTO is the complementary link formed between trade liberalization and
deregulation and the rise in productivity and reform (Brandt et al., 2017). Meanwhile, China’s
WTO admission has caused its trading partners to express worries about greater competition in
the world’s capital and goods markets, highlighting China’s influence on the dynamics of global
trade (Yang, 2006). In addition, since Premier Xi Jinping’s original suggestion of establishing
the Asian Infrastructure Investment Bank (AIIB) during the 2013 APEC meeting in Bali, China
has also been at the forefront of the bank’s growth (Wang, 2019). The establishment of the AIIB
is seen as a qualified success for Beijing’s economic statecraft, reflecting its role in boosting
regional economic connectivity and infrastructure, regardless of observers’ interpretation of the
multilateral development bank as a challenge to international lending bodies, such as the

27
International Monetary Fund, World Bank, and Asian Development Bank (Haga, 2021).
Furthermore, China’s 2013 introduction of the Belt and Road Initiative (BRI) sought to increase
connectivity and collaboration with nations in Asia, Europe, and Africa (Yu et al., 2019). The
BRI has significantly impacted the outward FDI of Chinese enterprises, demonstrating the
initiative’s influence on global investment strategy.
Between 1979 and 2018, China saw an annual average GDP growth rate of
approximately 9.5%, attributable to globalization and the country’s domestic policies. This,
according to the World Bank, was the fastest sustained expansion by a major economy in history
(Hang, 2017). China’s nominal GDP share of the global economy climbed from less than 2% in
1978 to an astounding 16% in 2018, and its share of global commerce increased from
insignificant levels in 1978 to 11% in 2018 (Yang, 2020). The average Chinese person’s standard
of living increased by 26 times in real terms between 1978 and 2018. In 1978, 30% of Chinese
people lived below the official poverty line; today, less than 4% of the rural population falls
below this threshold (Yang, 2020). The nation’s rapid development, urbanization,
industrialization, and globalization have all greatly influenced its global footprint.
Recent Trends and Challenges
China has faced some notable hurdles in the past five years. For one, the United States
initiated a trade war to address the unfair trade practices by Chinese companies, including forced
technology transfer and infringement of intellectual property rights, as well as to lessen the
bilateral trade imbalance (Urata, 2020). Another issue is China’s planned extradition bill in Hong
Kong, which has a potential to undermine Hong Kong’s autonomy and civil rights. The deep
anxiety aroused by this bill among the Hong Kong public contributed to the 2019 demonstrations
in Hong Kong (Perera, 2021). China’s central government imposed the national security

28
legislation in 2020, which exacerbated political and legal difficulties in Hong Kong (Lai, 2023).
Taiwan also saw the national security legislation in Hong Kong as an assault on its sovereignty, a
perception that might have long-term consequences (Angeles, 2022). On top of this, the Chinese
economy is struggling with poor company investment, sluggish consumption, soaring debt, and
growing financial insecurity among Chinese people in the wake of the COVID-19 pandemic
(Posen, 2023). As China strives to further increase its influence in the world, how it tackles these
challenges will remain in the spotlight.
The distinctiveness of China’s economic reforms from the past and the consequent
integration of the country into the global economy points to the remarkable transformation that
has led to the nation’s unparalleled economic growth within these past few decades. Economic
policy reforms, introduced in China in the late 1970s, China’s accession to the WTO, and the
launching of global initiatives, like the AIIB and BRI, have all contributed to China’s
international status as one of the driving forces of global economic trends. However, the trade
war with the United States, political tensions in Hong Kong, and adverse effects of the COVID19 pandemic are a reminder that China’s rise in the world is a complex journey and will not be
without problems and uncertainties. For MNCs, these challenges are both obstacles and
opportunities that, if manipulated properly, can help them navigate the global economic
landscape safely.
Chinese MNCs and Global Expansion
From the mid-1990s, Chinese MNCs started to experience remarkable growth overseas
(Tung, 2005). In 1999, the Chinese government implemented the “go global” (Zouchuqu) policy,
which promoted globalization for both brand creation and technical advancement (OECD, 2008).
This policy is largely responsible for China’s globalization. Since China started this initiative,

29
the nation has significantly increased its internationalization efforts, as evidenced by its
emergence as a key source of outward FDI (Wei, 2010). China’s stock of outward FDI reached
USD 2.2 trillion in 2019, making it the second-largest source of outward FDI globally, up from
USD 184 billion in 2008, according to the Ministry of Commerce of the People’s Republic of
China (2020). In addition, the BRI, proposed in 2013, sought to create a network of mutually
beneficial collaboration with nations along the route and has been a major topic of discussion
regarding China’s global aspirations (Shi & Ye, 2021). Alon et al. (2021) emphasized that China
has made it possible for Chinese MNCs to gain access to local resources, acquire and utilize new
technology, and seize global markets through initiatives like the BRI. Consequently, Chinese
MNCs have increased their global presence immensely. In 2000, the Fortune Global 500 list,
which rates the world’s top corporations by revenue, included only 10 Chinese firms
(Cendrowski, 2015); by 2020, this number had grown to 133, surpassing the number of
American companies (Murray & Meyer, 2020). Furthermore, as of March 2020, 14 of the top
100 market capitalizations were Chinese (Hunter et al., 2020). Certainly, the Chinese trajectory
of global expansion, while not without obstacles, has been a rather impressive one. The next
section provides a deeper exploration of this observation by looking at how Chinese MNCs have
performed in specific countries.
Successes of Chinese MNCs
This section presents a synthesized view of the performance of Chinese MNCs across
countries based on prior findings. The studies discussed in this section have all looked at one
aspect or another of Chinese MNCs’ existence overseas. Thus, this study sheds much light on the
obstacles these businesses have overcome to remain operational in foreign economies.

30
Cooke (2014) conducted qualitative research to determine the impact of dynamic
interactions among Chinese MNCs, governments, and other institutional actors on the human
resource management practices of Chinese MNCs operating in emerging markets in Asia and
Africa. Focusing on Chinese activities in South/Southeast Asia and Africa, considering that
Chinese companies have several advantages over their competitors in these regions, Cooke
(2014) used a variety of theoretical views, primarily political economics, and institutional
viewpoints to explain the many circumstances in which Chinese MNCs venture and operate.
Cooke (2014) provided insights into the international success of Chinese MNCs by highlighting
the important contribution that Chinese investment and MNC practices have made to the social
and economic progress of emerging economies in Asia and Africa. Their study also highlighted
the nature of the political relations that the Chinese government has established with these
countries, as such relations may have implications for the ability of Chinese MNCs to integrate
in their host countries. Furthermore, analyzing how MNCs interact with their host countries and
how regional institutions influence their business plans and human resource management
practices provided important insights into the elements that contribute to the success of Chinese
MNCs in these areas. Cooke (2014) addressed a number of difficulties faced by Chinese MNCs
abroad, such as the difficulty of managing political relations with host countries, possible
resistance of local economic and political groups, and the need to strengthen relations with host
governments. Additionally, it drew attention to the risk that smaller, privately held Chinese
MNCs face in some African nations where the legacy of colonialism may have given Western
MNCs a stronghold (Cooke, 2014). The comprehensiveness of Cooke’s examination of the role
that Chinese investments have played in supporting the economic and social growth in these
countries is commendable. It further proves the broader impact of Chinese MNCs beyond mere

31
economic transactions. However, Cooke’s qualitative approach, while imparting valuable
contextual insight, is not devoid of shortcomings. For one, the study’s scope and sample size
automatically restricted its generalizability across other regions and contexts. One important
aspect is that Cooke’s study focuses on the perspectives of Chinese MNCs and may have
overlooked the viewpoints of local stakeholders, resulting in unintended bias in the interpretation
of the factors at play. Nonetheless, Cooke (2014) acknowledged that the challenges Chinese
MNCs face abroad warrant a deeper exploration of the specific strategies employed to address
these challenges.
Virzi and Parrington (2019) attempted to identify the barriers that prevent U.S.
consumers from accepting Chinese brand names, with the aim of elucidating the inability of
Chinese MNCs to build brand equity in the US despite large expenditures and official support.
Using a mixed-method, non-experimental strategy, Virzi and Parrington (2019) reported on how
customers in the United States typically view Chinese products. Their method used questions
based on the three most frequently used consumer-based brand equity (CBBE) models: Aaker’s
Brand Equity, Keller’s CBBE Pyramid, and Y&R’s BrandAssetVaulator Four Pillars. They
constructed six quantitative questions using Schivinsky and Dabrowski’s CBBE Inventory Scale,
developed in 2014. This scale, similar to Keller’s and Y&R’s, was based on Aaker’s Brand
Equity concept. They then devised three qualitative questions to collect short-answer, follow-up
data to further the investigation. The brevity of the survey was appropriate for its online nature,
intended to achieve a high participation rate. The results showed that the main reasons
preventing U.S. consumers from accepting Chinese brand names are lack of awareness and
unfamiliarity. Virzi and Parrington (2019) also revealed a link between perceived quality,
reputation, familiarity, quality control, and brand trust. The survey highlighted a skewed

32
response rate, suggesting that very few U.S. customers are aware of certain Chinese brand
names. Their study recognized that the success of stand-alone Chinese MNCs can distribute
revenue streams within the country and create a safety net for the Chinese economy. It
emphasized the need to address these issues to increase the acceptance of Chinese brand names
among U.S. consumers (Virzi & Parrington, 2019).
The keenness with which Virzi and Parrington (2019) conducted their research,
especially in the execution of their methodology, is one of their study’s strongest pillars.
However, it had one glaring weakness in its lack of depth in exploring the underlying
psychological mechanisms driving consumer attitudes toward Chinese brands. Although Virzi
and Parrington identified the factors hindering acceptance, they did not delve into the cognitive
and emotional processes that shape these perceptions (which may be possible through
psychological frameworks). As such, some significant underlying reasons for consumer
resistance toward Chinese brands remain unexplored.
The foregoing studies have focused on the external forces that influence the performance
of Chinese MNCs overseas. However, the performance of a company in any context typically
hinges on a combination of both internal and external environmental forces. Addressing this
point, Cooke and Lin (2012) investigated the investment motives, trade strategies, and
management practices of Chinese MNCs in Vietnam, including various labor and human
resource management strategies. They highlighted the impact of various factors, including the
form of ownership (private firms operated by individuals or corporations as opposed to state -
owned enterprises owned and operated by the Chinese government), industry sector
(construction and manufacturing), institutional supports and barriers (perceived similarities in
institutional and cultural environments, financial assistance, and policy support from the Chinese

33
government), and different roles of institutional actors from the home and host countries. They
identified deficiencies in organizational resources, such as management skills, technological
expertise, and financial capital, especially among small private Chinese MNCs. In this manner,
they illustrated the real-world obstacles and constraints that these companies have to overcome
to expand internationally (Cooke & Lin, 2012).
This section reveals that four major fronts collectively define the existence of Chinese
MNCs in different countries. First, the success (or failure) of Chinese companies overseas has
largely hinged on the potential of these companies to contribute to the host country’s social and
economic development, especially in developing economies. The direction of these
developments has depended on the dynamic interaction among the host government, Chinese
MNCs, and institutional forces that decide how things run in those countries. Second, the United
States has played a significant role in shaping the perception of Chinese goods in the global
market. In the United States itself, propaganda has prevented many consumers from accepting
Chinese brand names, impeding awareness, familiarity, and brand trust. Third, the survival of
Chinese MNCs in other countries is highly subject to the ability of these MNCs to adapt to local
conditions; nonetheless, these overseas markets are fraught with challenges, especially when
they are already hosts to several established multinational companies. Lastly, factors such as
ownership structure, industry sector, institutional support, and organizational resources
significantly determine the success and challenges that Chinese MNCs face in their efforts for
international expansion.
Determinants of Chinese MNCs’ Success
While traversing the competitive global economic environment, Chinese MNCs
encounter various significant challenges ranging from cultural and language barriers to

34
differences in legal frameworks across countries, geopolitical tensions, and various consumer
tastes. Moreover, Chinese MNCs have historically faced issues of intellectual property
protection, brand reputation management, and corporate governance, which are even more
challenging when MNCs operate in places with strict regulations or intense competition from
local and international players. Developing business models and operational strategies that suit
various market environments while maintaining competitiveness are also of concern. Generally,
the global business environment undergoes substantial and volatile changes that greatly
challenge Chinese MNCs, overcoming which requires strategic insights, agility, and strong risk
management capabilities.
Shenkar (2009) examined the characteristics of Chinese MNCs and identified these
challenges, in the process highlighting the need to understand the strengths of MNCs in
addressing these challenges effectively. Shenkar (2009) used statistical data to evaluate the
entrance manner and regional, and geographical distribution of Chinese outbound FDI. Their
study also covered Chinese enterprises’ challenges, shortcomings, and strengths, as well as
where and how they might develop their skills. These strengths included their ability to capitalize
on China’s large and expanding market, the speed with which their manufacturing platform
could gain scale and maintain cost advantages, and their access to exclusive markets and unique
incentives. Chinese MNCs also benefit from comparatively lax intellectual property laws and
government support, which can lower their cost base. However, scarce technological assets, such
as patents and exclusive designs, pose a difficulty for Chinese MNCs, forcing them to rely on
counterfeiting and potential intellectual property rights infringement. They also face difficulty
diffusing and leveraging sophisticated talent in global markets and have weak organizational and
management capabilities. Other issues raised are government and political interference and

35
limited innovation and learning capabilities. According to the findings, Chinese companies need
to create a multinational enterprise characteristic of China that capitalizes on their strengths, such
as their understanding of personal networks for coordination and their awareness of interpersonal
relationships, if they hope to become global-level competitors (Shenkar, 2009).
In a related study, Lyles and Salk (1996) investigated organizational traits, structural
processes, and contextual variables that impact information acquisition from the foreign parent
company in international joint ventures (IJVs). They then linked ratings of knowledge gain to
IJV success. The basis of the findings is an evaluation of IJVs in Hungary, where acquiring
knowledge and learning from a foreign parent company is especially important. The extent to
which IJVs disclosed obtaining information from their foreign parent companies showed a
positive relation with mechanisms for adaptation, such as capacity to learn, defined goals, and
structural processes, including foreign parent companies providing training, technology, and
administrative assistance. They also uncovered evidence for the notion that cultural differences
might inhibit knowledge acquisition, but only in two-party collaborative ventures with 50–50
equity structures. Moreover, in investigating the correlation between the acquisition of
knowledge and other variables for assessing IJV achievement, they found notable associations
between knowledge acquisition and achievement for each of the performance indicators.
Knowledge acquisition from the foreign parent company and the business characteristic
speculated to improve IJV knowledge acquisition had a greater impact on examinations of
certain aspects of performance.
In another study, Child and Rodrigues (2005) investigated the trends and motivations for
internationalization among market-seeking Chinese enterprises. Case studies showed that these
companies are looking for technology and brand assets to obtain a competitive advantage in

36
global marketplaces. While Western theory assumes that corporations internationalize to
capitalize on competitive advantages, Chinese enterprises often make such expenditures to
compensate for competitive disadvantages. Chinese MNCs pursue inward internationalization
through original equipment manufacturing and joint venture partnerships, as well as outward
internationalization through acquisition and organic expansion abroad. Each of these paths has
advantages and disadvantages. Child and Rodrigues (2005) concluded that the Chinese case
provides a possibility to expand current theorizing in four main areas: the latecomer viewpoint
and catch-up techniques, institutional assessment with a focus on the function of government,
relations between businesspeople and organizations, and reliability of foreignness.
Hsiel et al. (2019) offered more or less the same observations in their investigation of the
impact of entrepreneurial qualities—expertise, justifications, and innovative approaches—on
many parameters of the internationalization rate. According to the results of their analysis of 180
small and medium enterprises (SMEs), timing, the pace of strengthening, and rate of
diversification geographically are three distinct strategic possibilities, with each dimension
indicated by a unique set of entrepreneurial determinants. Hsiel et al. (2019) found a link
between entrepreneurs’ early internationalization and their international business background,
awareness of prospects overseas, and inclination toward a versatile strategy for innovation.
Entrepreneurs’ foreign business expertise, attitude toward distinction from rivals, dedication to
innovation, and an exploration-focused approach all influence the speed of diversification. These
findings highlighted the need to differentiate among various types of innovation. Only
entrepreneurs’ preference for distinctiveness in comparison to rivals could predict the speed of
regional diversification.

37
In the following sections, the present study examines in greater detail the three major
determinants of success for Chinese MNCs: cross-cultural competency, foreignness, and
internationalization.
Cross-Cultural Competency
Cross-cultural competency is the ability to work with people from different cultural
backgrounds productively and acceptably (Johnson et al., 2006). To work together successfully
in a variety of cultural contexts, one must recognize, appreciate, and accept cultural differences
(Sam & Berry, 2010), and then adapt one’s behavior and communication style (Yari et al., 2020).
This will enhance intercultural understanding, make collaboration more effective, and mitigate
misunderstandings and conflicts in diverse cultural contexts. To describe the skills required for
managers to effectively engage in cross-cultural information absorption, Kayes et al. (2005)
conducted a thorough literature review of research on knowledge management and cross-cultural
competence. They identified seven thematic skills for absorbing knowledge in a cross-cultural
environment. These competencies, which included recognizing and decoding nonverbal cues,
dealing with ambiguity, translating complicated concepts, acting in emergencies, and managing
people both internally and across cross-cultural boundaries, are critical for managers to
successfully engage in cross-cultural knowledge assimilation (Kayes et al., 2005). Kayes et al.
(2005) reinforced the validity and relevance of the findings on actual cross-cultural management
situations and provided a solid foundation for defining the competencies required to absorb
cross-cultural information.
Kayes et al. (2005) offered valuable insights into the skills necessary for cross-cultural
knowledge absorption. However, the rigor of their literature review process is questionable
because of the lack of clarity on the number of studies reviewed or the criteria used for selection.

38
Apart from the compromise on the comprehensiveness and reliability of their findings, they also
failed to mention their systematic analysis framework or method for synthesizing the selected
literature, indicating a possibility of biases. They may have even overlooked important elements
in the data. This compromise puts a significant limitation on the generalizability of the identified
competencies to diverse cultural contexts and organizational settings. In other words, the study
by Kayes et al. (2005), although informative, may have limited applicability in real-world crosscultural management scenarios. Nonetheless, their study revealed some gaps that could be rich
subjects for future research. For instance, it focused on managerial competencies; future research
could address the role of organizational structures, processes, and support systems in facilitating
cross-cultural knowledge exchange. This topic could also benefit from a deeper examination of
the contextual factors influencing the development and application of the identified
competencies, such as the specific cultural contexts in which managers operate and the nature of
their intercultural interactions.
Chen (2019) used a quantitative method to investigate how the intercultural adaptation of
expatriates affects their work stress and work participation. To obtain comprehensive
information, Chen (2019) collected data using a questionnaire with items based on widely used
international questionnaires. Chen (2019) then conducted a one-way analysis of variance to
investigate and assess demographic factors. According to the study, difficulties with the assigned
work, an unfamiliar environment, language problems, and cultural differences are among the
obstacles faced by expatriates, and these problems have an impact on their job involvement and
job stress. Chen (2019) also found that expatriates with a higher level of intercultural
competence perform better at work and are better able to adapt to their new environment. In
addition, expatriates from the high-tech industry who can adapt to other cultures and customs

39
show better job engagement and are more likely to seek strategies to reduce work-related stress.
In a globalized society, cultural competence is crucial, as it enables people to communicate and
collaborate with others from different cultural backgrounds (Chen, 2019). In both private and
professional contexts, cultural competence promotes mutual respect, understanding, and
cooperation, leading to more fruitful and effective cross-cultural partnerships (Chen, 2019). In
addition, cultural competence can improve a person’s flexibility and resilience in a variety of
situations, which promote success and overall well-being (Chen, 2019). Although the findings
are adequately substantiated, self-reported measures like the ones Chen used are subject to bias
and can give misleading results. In addition, Chen (2019) reported these findings without
consideration of other factors that might influence expatriate adaptation, such as organizational
support or individual personality traits. A mixed-methods approach could have addressed these
challenges as it would have considered a broader range of contextual factors.
MNCs, while understood to be entities, belong to individuals—people who are subject to
all the elements of being human. If these people fail, then companies will also fail. Wang et al.
(2014) focused on Chinese expatriates and how people adapt to and cope well in a foreign
culture in their review of expatriate literature. Following prior research in this field, Wang et al.
(2014) used a survey-oriented quantitative approach to assess the hypothesis, along with
subsequent interviews providing further insights into the findings of the survey. The answers to
the survey came from Chinese expatriate executives employed by Chinese corporations’
overseas operations. The study found that self-maintenance skills are only somewhat relevant to
Chinese expatriates. This finding highlighted the potential disadvantages of focusing on these
skills for expatriate performance and adjustment. Wang et al. (2014) also concluded that
communication is the most important indirect way in which perceptual skills influence one

40
another. The study noted the importance of understanding the complex relations between
individual skills and how different skills support one another. Furthermore, the findings pointed
to the importance of acquiring excellent communication skills for expatriate managers—
especially those from developing countries—if they are going to work abroad. According to
Wang et al. (2014), proficiency in the local language alone is not enough for productive
communication in the workplace.
While assessing the ability of Chinese expatriates to cope with foreign cultures, Wang et
al. (2014) tacitly emphasized the criticality of cultural competence. Through the investigation of
the self-maintenance competencies and communication abilities of Chinese expatriate
executives, they indirectly revealed the importance of paying attention and adapting to cultural
differences in intercultural business settings. Successful communication entails mastery of the
language and also goes beyond it to embracing cultural factors, sensitivities, and adaptability.
Consequently, practice implications are very much based on the cultural competence of the
expatriate, defining their performance and adjustment. Expatriate managers (mostly from
developing countries) need to cultivate not only their language proficiency but also cultural
relations to be able to appropriately address diverse foreign workplace environments. Wang et al.
(2014) showed the interplay of specific skills and cultural awareness in smooth cross-cultural
interactions and overall success.
Wang et al. (2014) pointed to the importance of cultural competency in promoting
success for Chinese MNCs functioning in varied cultural environments. Recognizing, adjusting
to, and effectively managing cultural differences represent an important factor of success in
cross-cultural business situations. Their analysis revealed the role of cultural competence in
improving intercultural understanding, communication effectiveness, and overall business

41
performance, emphasizing the need for MNCs to prioritize the development of cultural
competence as a strategic asset. For Chinese MNCs, cross-cultural competence is an essential
prerequisite for their ability to succeed in the global economy (Wang et al., 2014). Chinese
MNCs can improve their ability to manage diverse international teams, understand and respect
cultural norms and business practices, and build robust partnerships with foreign partners and
stakeholders by cultivating their cultural competences (Wang et al., 2014). To build trust,
facilitate communication, and succeed in cross-border acquisitions and international trade deals,
MNCs must acquire this competence.
Liability of Foreignness
Companies encounter challenges while working in an environment with different
cultural, regulatory, and institutional norms. As businesses go global, they come across hurdles,
which include cultural diversities, legal problems, and institutional unfamiliarity—hence, they
accumulate the risk of foreignness. These obstacles limit the capacity of foreign firms to gain
market shares and, hence, their effectiveness in competing in foreign markets, which have direct
implications on their performance, market entry strategy, and chances of success.
Acknowledging and tackling the issue of liability of foreignness (LOF) are important steps for
multinational companies to succeed in a variety of global market settings.
Foreignness is a fundamental concept to the study of international business and
encompasses the ideas, expressions, and outcomes of doing business in foreign or distant
contexts (Lu et al., 2022). Lu et al. (2022) drew attention to the LOF, a term that describes the
difficulties and disadvantages that MNCs face when doing business in foreign or remote regions.
Lu et al. (2022) analyzed the body of literature on foreignness and traced the progression of its
four streams: liabilities, assets, drivers, and firm responses. They found that the social, relational,

42
and institutional elements that lead to unfamiliarity, prejudice, and relational risks for MNCs in
their host countries are the main causes of these difficulties. The costs of dealing with crosscultural differences, adapting to new institutional contexts, and negotiating unfamiliar business
practices or laws are all perceived burdens associated with operating abroad (Lu et al., 2022). A
potential limitation of their research is the scope of their review. Although they presented
valuable insight into the evolution of the four streams of foreignness research, they overlooked
emerging perspectives within each stream, potentially making the review less comprehensive.
Moreover, they focused on established streams and neglected innovative approaches or
alternative perceptions of foreignness. This neglect also points to a possible research gap (i.e.,
the intersectionality of foreignness with other contextual factors). The interaction between
foreignness and such variables as industry characteristics, cultural dimensions, and institutional
settings are unexplored. New research should investigate how these factors intersect with
foreignness to expand the understanding of the latter’s effects on organizational behavior and
performance in international settings.
Fornes and Cardoza (2019) examined the particular challenges that MNCs in emerging
markets face when they decide to go global. To identify the business resources and competencies
required to facilitate the initial stages of global expansion, they gathered data from over 500
Chinese SMEs and examined them with multivariate and sequential regressions. They identified
the critical factors affecting the success of international business expansion by examining four
main areas: limited knowledge of external markets, sociocultural differences, unfamiliarity with
foreign contexts and business practices, and limited local business contacts, trusted agents, and
control systems. Some of the disadvantages faced by MNCs expanding abroad are the limited
access to resources and skills in the host market, lack of information and experience necessary to

43
operate in a new market and institutional environment, lack of trusted contacts and access to
local business networks, limited awareness of socio-cultural differences, and unfamiliarity with
local business practices and host market characteristics. These disadvantages can lead to higher
costs, impede the identification of business opportunities, and hinder the development of
effective business plans for international markets (Fornes & Cardoza, 2019). MNCs
encountering restricted access to resources or the lack of credible contacts, together with limited
experience with local market characteristics (e.g., infrastructure and distribution channels),
experience increased costs, difficulty in identifying opportunities in a new country’s market, and
obstacles in developing effective business strategies. These shortcomings clearly illustrate the
disadvantages that might come with being a foreigner, which in turn bring about the notion that
the understanding and mitigation of LOF is necessary to enhance MNCs’ competitiveness and
success in global markets.
LOF is a complex issue because it involves a range of factors that can vary greatly
depending on the context in which the MNC operates. Compared with local corporations, MNCs
must think more about such challenges as cultural differences, legal and regulatory barriers,
political instability, and local market competition, all of which can impact their success or failure
in foreign markets (Luo, 2007). Changing market conditions, government policies, and
socioeconomic forces influence the dynamics of LOF, making the concept even more
complicated. Before one concludes that MNCs outperform local companies in the long run, one
must understand that the dynamics of these environments are never straightforward, and MNCs
have much more work to do to navigate them than do local companies.
Cao and Alon (2021) aimed to elucidate how Chinese MNCs manage the risk associated
with their foreign status in Poland. Focusing on resource dependence and how Chinese MNC

44
subsidiaries attempt to assimilate in their new home country, Cao and Alon (2021) sought to
identify and analyze the factors affecting foreignness through 43 semi-structured interviews with
local and foreign managers of Chinese high-tech MNCs. They found that Chinese MNCs in
Poland rely on one another as well as on local stakeholders and headquarters to adapt to their
new environment. The authors identified six factors that influence the LOF: resource
commitment, information flow, control over resources, integration of resources, local
responsiveness, and control flexibility. Their study offered recommendations to mitigate the
losses brought about by LOF, such as fostering mutual trust between local, subsidiary, and
headquarters stakeholders; using local and foreign employees as intermediaries for resource
transfer; increasing the foreign subsidiary’s absorptive capacity; and improving local
responsiveness and control flexibility (Cao & Alon, 2021). These tactics are useful ways to
reduce LOF and adapt to the institutional context of the host country. Cao and Alon (2021)
conducted a strong investigation, especially in their qualitative approach of utilizing semistructured interviews with local and foreign managers of Chinese high-tech MNCs to provide
firsthand insights into LOF mitigation strategies. The study is a great contribution to the
understanding of the complex dynamics of international business environments. However, its
narrow focus on Chinese MNCs in Poland limits the generalizability of its findings.
Chinese MNCs need to reduce the risks associated with their foreignness; otherwise, they
face higher costs, poorer performance, and greater dependence on resources, which can
adversely affect their ability to compete and survive in international markets (Cao & Alon,
2021). For these MNCs to successfully navigate the difficulties of operating in a foreign
institutional environment, build robust subsidiaries, and cultivate mutually beneficial
partnerships with local stakeholders, they must overcome LOF (Cao & Alon, 2021). In this way,

45
Chinese MNCs can build capacity, gain better access to resources, and succeed in international
markets.
Internationalization
The process of becoming more involved in foreign activities is known as
internationalization. It involves the expansion of a company’s business activities at an
international level, such as by establishing subsidiaries overseas, entering into international
business, or forming strategic alliances with foreign companies (Schmid, 2018). Activities
related to sourcing, production, marketing, and research and development in international
markets can be part of this process.
Vermeulen and Barkema (2002) investigated the relation between the profitability of an
MNC and its foreign growth strategy. The rate of internationalization, size of the geographic and
product markets entered, and irregularity of the expansion all have a negative impact on a firm’s
increase in profitability as a result of international growth. In particular, the number of
international subsidiaries may increase, which can improve the firm’s profitability, but the pace,
scale, and irregularity of the expansion process will counteract this benefit. Strong evidence for
these associations based on data analysis supported the hypothesis that the amount of benefits a
firm draws from having subsidiaries is dependent on its internationalization (Vermeulen &
Barkema, 2002). A deep understanding of internationalization can help MNCs create tailored
plans for resource allocation, risk management, organizational structure, and market entry in
different countries, all of which can lead to increased performance and competitive advantage at
a global level.
SMEs in developing nations face issues with internationalization (Chandra et al., 2020).
Notably, the study by Vermeulen and Barkema (2002) is not devoid of limitations. One of the

46
main drawbacks is its dependence on the existing literature, which excludes emerging issues or
lacks details about specific sectors or areas. The research could do better with a deeper
assessment of the interplay between different obstacles and their cumulative effect on the
internationalization activities of SMEs. Nonetheless, Vermeulen and Barkema (2002) provided
good insights and proposed a targeting support program and advocacy campaigns to create a
favorable environment for SME growth abroad.
Deng (2012) analyzed the literature on the internationalization of Chinese firms
published in academic journals between 1991 and 2010. Using a coherent framework, Deng
(2012) organized and reviewed the conceptual and empirical data from disciplines such as
management, international business, cross-cultural studies, and area studies. In their attempts to
go global, Chinese MNCs encounter a number of difficulties, such as adapting to new
institutional, legal, and cultural realities in their host countries. They also encounter obstacles
related to discrimination and legal restrictions, especially in transitional market systems. Deng
(2012) also highlighted obstacles arising from institutional dynamics in national contexts and the
cognitive limitations of decision-makers, which may affect the cross-border merger and
acquisition tactics of Chinese MNCs. MNCs may also face challenges from China’s institutional
problems and shortcomings in the financial market’s perception of risk (Deng, 2012). These
difficulties show how complicated and multifaceted internationalization is for Chinese MNCs.
With the large number of studies reviewed, Deng (2012) offered a strong position on the
internationalization of Chinese firms. However, studies like Deng’s typically suffer from bias
when selecting and interpreting literature. Indeed, Deng (2012) did not consider non-academic
sources, which also provide very valuable insights from industry perspectives. Nonetheless,

47
Deng’s analysis is a valuable addition to the understanding of the dynamics of the
internationalization experiences of Chinese companies.
Bu and Chen (2023) examined the relation between internal CSR and internationalization
in Chinese MNCs, focusing on the role of shareholders and employees. Based on a quantitative
study of MNCs listed in China from 2013 to 2018, they concluded that Chinese MNCs face
particular hurdles in their internationalization efforts, such as dealing with cultural differences
and adapting business methods to different foreign markets. Communication difficulties and
language restrictions also prevent MNCs from expanding globally. Chinese MNCs may also
need to build brand awareness and reputation in new markets and deal with regulatory
difficulties and unfamiliar legal systems abroad. In addition, Chinese MNCs must cope with
trade and geopolitical issues, intellectual property protection, and technology transfer. Finally,
Chinese MNCs have to ensure effective cross-border human resource management and build
global leadership capabilities. While in-depth, recent, and reliable, Bu and Chen (2023) could
have explored in more detail the particular mechanisms of how internal CSR practices impact the
outcomes of internationalization and examined the moderating factors.
Therefore, cultural competency is the most prominent of all the challenges Chinese
MNCs face in their international endeavors. This is not to say that the other factors are trivial,
but any foreign company must successfully navigate different cultural forces, establish effective
communication, build trust, and create constructive relationships with stakeholders in a foreign
country. Cultural differences, meanwhile, decide the important aspects of business operations,
including negotiation styles, decision-making processes, and customer preferences. Critically
speaking, a country’s culture informs all the other factors discussed that pose challenges to
Chinese MNCs overseas.

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Japan: Overview, China–Japan Relations, and MNCs
This section unravels the details of the relations between China and Japan, with a more
in-depth discussion of the historical context, followed by the factors that characterize the two
countries’ present relations. This section also explains the implications of their relations on
MNCs operating between the two countries, with a focus on Chinese MNCs. It aims to uncover
valuable insights that can contribute to a broader understanding of the commercial context within
which Chinese MNCs exist in Japan.
Overview of Japan’s Economy
Kikkawa (2005) explained that the bubble economy that Japan saw in the late 1980s was
a result of speculative real estate and stock market growth that ultimately crashed. After the
bubble burst in the early 1990s, Japan had poor or sluggish economic development for a
considerable amount of time (Izuhara, 2020). The Japanese economy had a protracted recession
in the 1990s that had an impact on both the overall national economy and city -regions (Kamo,
2000). The Japanese economy has since struggled with large levels of public debt and persistent
deflation for more than 20 years, prompting measures from both the supply and demand sides
(Biyik, 2021). Japan has had new difficulties recently, such as depopulation, population aging,
and regional disparities, which have affected the country’s economy (Miwa et al., 2022).
Researchers have also examined the implications of Japanese monetary shocks under the Bank of
Japan’s monetary policy of negative interest rates and have shed light on the effects of this policy
on the Japanese economy and its major trading partners (Spiegel & Tai, 2018).
Despite the structural issues it faces, Japan has created and maintained a strong economy.
With its highly diversified manufacturing and service sector, Japan is one of the world’s top
manufacturers of automobile, steel, and high-tech manufactured products (Hijino et al., 2023). In

49
2022, Japan’s GDP reached around USD 4.24 trillion, placing it third in the world GDP rankings.
The country’s unemployment rate has been progressively declining, hovering at around 3%
(O’Neill, 2023). Marshall and Koshino (2013) reported that Japan’s market size, purchasing
power, and growth potential have drawn MNCs for decades. While most MNCs view Japan
primarily as a stable, slow-growing economy, with an extremely sophisticated customer base, an
increasing number of businesses are realizing that Japan can offer opportunities for high growth
and further market penetration while continuing to enjoy hefty margins (Marshall & Koshino,
2013). As Japan’s economy booms and provides opportunities that China cannot, the dynamics
of their political and economic relations merit analysis, to explore the broader landscape of East
Asian trade and cooperation.
Overview of China–Japan Political and Economic Relations
Historical grievances, territorial disputes, and concerns about regional security all have
an impact on and define the political ties between China and Japan. Historical concerns continue
to affect the two nations’ bilateral ties, especially those pertaining to Japan’s invasion of China
during World War II (Gries, 2005). Historical issues remain contentious and prevent Chinese
diplomats from pursuing a practical Japan strategy (Gries, 2005). Yarlykova (2022) also
discussed how historical issues, and the painful past still affect China–Japan ties, affecting the
degree of mutual trust and collaboration between the two countries. Territorial conflicts,
particularly in the East and South China Seas, have also exacerbated the complexity of bilateral
relations. Japan has expressed growing concern over the South China Sea tensions and deadlock
in creating effective conflict control procedures (Storey, 2013). The geopolitical dynamics in
East Asia, which include the competition between China and the United States as well as Japan’s
regional position, further complicate Japan–China relations (Chun & Ku, 2020). Security

50
dynamics between Japan and China are also complex. Japan has serious long-term strategic
concerns about China’s aggressive territorial claims in the East and South China Seas, large
defense spending, and rapid military modernization (Singh, 2022).
Sasaki (2010) asserted that shifts in China’s perception of danger have escalated tensions
between the two nations, with analysts attributing these changes to both the reinforcement of the
US–Japan alliance and Japan’s military expansion. The presence of other regional actors makes
the connection more challenging. The way that the United States, Japan, Australia, and India are
actively seeking to increase their influence in the Indo-Pacific region as part of the Quadrilateral
Security Dialogue may have an impact on China’s regional policy (Alunaza & Sherin, 2022).
Despite certain political challenges, China and Japan have been able to maintain a stable
political relation, mostly because the multilateral trade system has enabled them to maintain their
political ties (Armstrong, 2021). According to Sahashi (2020), Japan has chosen a course of
action to preserve advantageous economic ties with China while strengthening its security via its
alliance with the United States. Several variables, including trade, exchange rate fluctuations,
and FDI, affect the two nations’ economic co-movement (Yang & Zhao, 2021). The year 2018
marked a new chapter of economic collaboration when the two nations decided to cooperate on
roughly 50 infrastructure projects in other countries, signaling their determination to work
together for mutual economic gains (Shimada, 2018). Furthermore, the Regional Comprehensive
Economic Partnership, the largest free trade agreement in the world in terms of GDP and
involving 16 countries (Tian et al., 2022), has implications for the economic relations between
China and Japan, with a possibility for economic interdependence (Wardani & Cooray, 2019).
According to Japan’s Ministry of Foreign Affairs (2023), commerce between China and Japan
reached USD 335.4 billion in 2022, making China Japan’s top trading partner and Japan, China’s

51
third. China has also become Japan’s third-largest investment destination, with USD 9.2 billion
in direct investments made in 2022. While their political and security environment remains
complex, China and Japan have managed to keep their economic relations strong and have even
seen new ways of cooperation. This economic interdependency serves as a prerequisite for the
exploration of some of the similarities and differences between Chinese and Japanese businesses.
Similarities and Differences Between Chinese and Japanese Businesses
Despite the significant commercial exchange between China and Japan, the literature
comparing Japanese and Chinese businesses has been scarce. The available studies seem to focus
more on the cultural environments within which these businesses exist. For example, Li and
Putterill (2007) compared the business cultures of China and Japan, focusing on the management
of business partnerships, including joint ventures and international investments. Li and Putterill
(2007) referred to cross-cultural research principles proposed by Hall (1976), Hofstede (1980),
and Trompenaar and Hampden-Turner (1998), as well as extensive field trips and observations in
China and Japan over several years. These studies elaborated specific cultural differences
between Chinese and Japanese business operations, including different communication styles,
organizational dynamics, and performance evaluation criteria. Japanese collectivism has the core
principles of maintenance of strict boundaries between groups, regular communication within
groups, and group cohesion. Chinese collectivism, with its comparatively permeable boundaries
between official groupings, leave more room for individuality to flourish. In addition, devotion
in Chinese culture often focuses on specific individuals rather than the group, as in Japan. Li and
Putterill (2007) also noted significant differences between the two countries’ management
ideologies, hiring and employment practices, and the need for different communication tactics.
These findings highlighted the particular difficulties and complexities of maintaining trade

52
relations between the two nations. Li and Putterill (2007) elucidated the diverse minds of
Japanese and Chinese businesses in an elementary manner; they did not explore the ramifications
of these differences for business strategy and relationship management in much depth. For
example, the enquiry could have explored how cultural heterogeneities embrace negotiating
styles, decision-making approaches, and conflict resolution techniques in joint businesses at
national borders. Furthermore, the analysis could have examined in more detail other
determining factors, such as the history, politics, and economy of the two countries, which help
create the environment in which these differences emerge. Introducing these elements may
increase the practical importance of the study’s results and give business entities operating crosscultural collaborations between China and Japan a framework of action.
Some scholars have compared business between China and Japan, in addition to other
countries. Studying businesses in Southeast Asia, Kienzle and Shadur (1997) examined and
contrasted three different types of business networks: Chinese family business networks, Korean
business networks, and Japanese business networks. Kienzle and Shadur (1997) found that the
formation of organized groups to prevent competition and focus on long-term business relations
are the two most important similarities between Chinese and Japanese business networks. Large
companies with a variety of assets and connections to foreign financiers are also involved in
both. Meanwhile, one of the main differences is that Chinese family business networks are
unable to grow because owners are unwilling to ask for help, and Chinese conglomerates
predominantly consist of new entrants from low-income backgrounds. Moreover, in Chinese
family businesses, management power hinges significantly on personal ownership, whereas in
Japan, ownership and management control are separate (Kienzle & Shadur, 1997). Although the

53
study may be of little relevance today, it showed the importance of understanding the different
qualities of Chinese and Japanese business network strategies.
As mentioned earlier, the people element is an important aspect of business, whether
local or international. Comparing businesses in China and Japan would not be sufficient without
a look into the differences and similarities among the individuals who run these businesses. Kim
et al. (2007) used a survey of 275 employees from China, Japan, and South Korea to investigate
how Chinese, Japanese, and Koreans deal with interpersonal disputes with their superiors and the
extent to which cultural variables are responsible for the differences in conflict management
techniques. The study found that Japanese and Chinese employees differ in terms of emphasis on
goals, the importance of individual versus collective goals, and concern for self, that is, the
extent to which a person prioritizes their interests, well-being, and self-preservation. Kim et al.
(2007) also found that the Japanese are less inclined to dominate and more likely to obey their
superiors. Therefore, the importance placed on self-care and cultural norms in relation to
individual and collective goals influences the conflict management strategies of different groups.
These findings shed light on the different conflict management practices and cultural
characteristics even in collectivist East Asian societies (Kim et al., 2007).
While Chinese and Japanese corporate cultures share certain similarities, such as the
value for long-term partnerships and group cohesion, they also have significant variances owing
to their cultural values and historical backgrounds (Jiang et al., 2011). These differences can
influence different aspects of company operations, such as communication strategies and dispute
resolution approaches, emphasizing the importance of cross-cultural knowledge and adaptability
in Chinese–Japanese commercial contacts. Recognizing these distinctions is critical for firms

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looking to negotiate the complexity of doing business across cultures in East Asia ; they help in
promoting efficient cooperation and cultivating mutually beneficial connections in the area.
MNC Challenges in Japan
International companies do not consider Japan the most accessible market. According to
Japan’s Ministry of Economy, Trade and Industry (2021), foreign companies registered in Japan,
numbering 2,808 in 2020, accounting for only a tiny proportion (0.07%) of all registered
companies. In terms of ease of doing business, Japan ranks 29th out of 190 countries in the
World Bank’s Ease of Doing Business Index (2020). This ranking places Japan lower than its
peers, such as Singapore, Hong Kong, and South Korea, and shows room for improvement in
Japan. The index takes into account a number of different aspects, including starting a business,
procuring energy, managing construction permits, registering property, obtaining loans,
protecting minority investors, filing taxes, trading across borders, complying with contracts, and
resolving insolvency cases.
Reid (1999) used interviews with representatives of leading companies in the Japanese
market, such as Coca-Cola, Alfred Dunhill, IBM, Procter & Gamble, and Unilever, to examine
how these companies had succeeded in Japan and show that selected foreign companies had
achieved leading positions in the highly competitive Japanese market. Reid (1999) highlighted
strategies and success factors for MNCs in Japan, including an international management
philosophy, high technological capabilities, and the acceptance of the Japanese subsidiary as a
strategic base. Reid (1999) also pointed out the importance of understanding the Japanese market
and playing by its rules. However, although Reid’s (1999) research brings to the fore the
techniques adopted by the different companies affiliated with foreign parent organizations, its
timeliness may be low, given that it is almost two decades old. Amid the constantly changing

55
nature of business environments, especially those in a speedy and innovative market like Japan,
the strategies and sources of success identified in the late 1990s may no longer be relevant or
valuable to the present situation. Furthermore, rapid technological improvements, changes in
consumer tastes, and adjustments in legislative frameworks during the past two decades may
have drastically affected the competitive environment and economic dynamics in Japan.
Some researchers have examined in more detail the difficulties encountered by MNCs in
Japan. Endo et al. (2015) pointed out that the objectives and focus of researchers have changed
from a prescriptive management perspective that sought to provide managers with insights into
best practices to a greater emphasis on understanding how Japanese companies have changed as
a result of the long-term recession and economic downturn. Endo et al. (2015) searched the ISI
Web of Knowledge for Japanese firms and found journals in the Science Citation Index, the
Social Sciences Citation Index, the Arts and Humanities Citation Index, and the Conference
Proceedings Citation Index-Science. They also searched the Web of Science database for journal
articles and Social Sciences and found 2,494 items (accessed March 10, 2014). They omitted
papers on psychiatry, geriatrics, and health, and only included articles referring to Japan,
Japanese firms (including Toyota), or techniques coming from Japan. After filtering, they
identified 966 articles, with 461 of the most frequently referenced selected for thorough
examination. Endo et al. (2015) emphasized how the competitive environment in East Asia has
changed, particularly with the emergence of China, Korea, and Taiwan. They acknowledged that
Japanese companies have lost market share in the global market to these economies, but also
emphasized the importance of Japanese companies in manufacturing essential components that
keep the region’s industries strong and ensure its long-term prosperity. Managing relations
within keiretsu (group of companies with interrelated business relations and shareholdings)

56
networks, overcoming cultural differences, understanding and adapting to Japanese business
etiquette and practices, and overcoming issues with inter-company relations, corporate
governance, and organizational culture are some of the challenges faced by MNCs in Japan.
MNCs may also face difficulties in the Japanese market in terms of FDI, CSR, and human
resource management. The most important lesson on the problems faced by MNCs in Japan is
the need to negotiate and adapt to the unique cultural, economic, and business realities (Endo et
al., 2015).
One limitation of Endo et al.’s (2015) study is the potential bias introduced in their search
criteria and selection process. Endo et al. (2015) focused on journal articles referencing Japan,
Japanese firms, or techniques originating from Japan. The effect of this narrow scope is that it
limits the comprehensiveness and representativeness of the findings because they probably
overlooked important insights from non-academic sources, such as industry reports, case studies,
or practitioner-oriented publications, or alternative research methodologies. In addition, relying
on English-language databases like the Web of Science may have excluded relevant literature
published in Japanese or other languages, further restricting the strength of the analysis. As such,
the findings Endo et al. (2015) may not capture the full extent of perspectives and experiences in
the Japanese business landscape.
Szarkiszjan and Denoncourt (2019) explored the legal elements of MNC issues in Japan
by examining the intricacies of Japanese trademark law and emphasizing the need for local
expertise to effectively handle the peculiarities of the legal system. They paid attention to
trademark registration in light of the Tokyo 2020 Olympic Brand Protection Guidelines, as well
as the distinctive cultural and linguistic features of the Japanese trademark law structure. The
short length of Japanese legal texts, lack of English translations of Japanese case law, difficulty

57
in accessing legal information and case law, and need to know the exact date of the judgment to
retrieve a case are all examples of the intricacies of the Japanese legal system. The highly reified
concept of trademark and particular traditions of Japanese court citations add to the complexity
of the Japanese legal system. For MNCs to successfully navigate the legal landscape and ensure
successful trademark registration and protection in Japan, they must draw on local knowledge
and prioritize strategic planning.
An observed gap in Szarkiszjan and Denoncourt’s (2019) project is the limited
consideration of practical proposals for MNCs to successfully tap into local knowledge and pay
attention to Japanese trademark law details. Although Szarkiszjan and Denoncourt (2019)
provided helpful information on the novelty of Japanese laws with regard to trademarks and
stressed the need for local knowledge, the authors did not formulate specific instructions or
practices that MNCs should follow if they want to have or use insider knowledge. To obtain
practical advice, an MNC may identify local partners who are knowledgeable in the Japanese
legal provisions for intellectual property protection or work with reliable local legal
professionals. Other approaches include developing a comprehensive trademark protection
strategy designed for the Japanese market or having clear communication channels in place.
Moreover, knowledge of possible challenges or obstacles when doing business in Japan and how
to successfully operate in the Japanese legal system would make the study more prospective.
Bebenroth et al. (2008) examined the practices and difficulties of filling managerial
positions in the subsidiaries of foreign MNCs in Japan, focusing on the question of whether
parent companies should transfer their expatriates abroad or rely on parent-country nationals
(PCNs) or locals from the home country. Using a sample of 3,241 international enterprises,
Bebenroth et al. (2008) revealed that partner expansion and a high ownership ratio are related to

58
higher numbers of PCNs in senior management and board positions. Their results indicated that
the cultural characteristics of parent companies and specific cultural characteristics of Japan also
influence the possibility of local nationals working as executives and board members in Japanbased subsidiaries. Notably, MNCs tend to refrain from hiring PCNs for their Japanese
subsidiaries owing to cultural differences, language barriers, and the availability of appropriately
trained local staff. Nonetheless, PCNs are more familiar with the parent company’s management
techniques and methods and can effectively establish and maintain relations with headquarters.
This familiarity and connection can make it easier for the parent company and local subsidiary to
coordinate and build trust, reducing the need for direct management of local operations by the
parent company. However, Bebenroth et al. (2008) did not explicitly recommend the hiring of
PCNs for management roles in host countries. They only shed light on the complexity of MNCs’
hiring practices in Japan.
Despite all the impressive characteristics of their study, from the relevance to the choice
of methodology, Bebenroth et al. (2008) had some limitations. It did not effectively highlight the
cultural considerations when deciding between expatriates, PCNs, and local hires for managerial
roles. The study also made no offers of solid guidance on the most effective approach. Without
these recommendations or best practices based on the findings, the study leaves readers without
strategies to navigate executive staffing in Japan. Bebenroth et al. (2008) also did not provide a
final solution on whether MNCs should prioritize PCNs or local hires for management positions
in Japanese subsidiaries, thereby diminishing the practical utility of the research for companies
seeking to optimize their staffing practices in Japan.
MNCs operating in Japan face a wide range of multifaceted challenges, ranging from
cultural differences and legal problems to managerial problems. Previous investigations (Endo et

59
al., 2015; Reid, 1999) have provided relevant details on how MNCs cope in Japan and the
challenges they encounter, but they have time and coverage constraints, which critically limit
practicality in the current business environment. Furthermore, works like Szarkiszjan and
Denoncourt (2019) and Bebenroth et al. (2008) identify legal and managerial problems, but they
are devoid of comprehensive solutions or recommendations. Therefore, despite all efforts to
elucidate the problems that exist and deal with them, the research gap on how MNCs can best
perform in the Japanese market remains large.
Lack of Studies on Chinese Companies in Japan
No explicit research has directly dealt with the problems and presence of Chinese MNCs
in Japan. Extant works mostly deal with Chinese MNCs operating in other countries (Kwan,
2010). Several studies have discussed the globalization of Chinese companies and their plans,
but they do not specifically address their activities and difficulties in Japan. The literature suffers
from a clear gap with respect to the particular difficulties and business practices of Chinese
MNCs in Japan. Further study of their existence, tactics, and difficulties in the Japanese market
would paint a comprehensive picture of the influence and activities of Chinese MNCs in Japan .
The lack of research on Chinese MNCs in Japan is also a significant gap in the literature
on the practice of business operations across borders. Based on the significant economic
interrelations between China and Japan and the unique differences in their corporate cultures and
business norms, the acknowledgment of specific issues that Chinese MNCs face when entering
the Japanese market is vital (Shenkar, 2009). Research in this area would yield important input
for Chinese firms that intend to go on with their business objectives in Japan. Such research
would facilitate an in-depth understanding of the interaction between these two leading players
in the global scene. This deficiency represents an avenue through which researchers may

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contribute insightful ideas and carefully formulated advice that will assist Chinese corporations
operating in Japan in overcoming hurdles and help enhance the economic cooperation and
relations between China and Japan (Iriye, 1992). The present research will attempt to look into
the complications as well as the strategies used by the Chinese MNCs that operate in Japan to
address this lacking knowledge base.
Theoretical Framework
The present study uses a modified version of the framework of Clark and Estes (2008),
combined with Vance et al.’s (2014) framework of HCNs as local liaisons in MNCs. The need to
modify the framework of Clark and Estes (2008) stems from the need to change the stakeholder
from the primary stakeholder (management in China) to the HCN (local Japanese employees)
owing to limitations in access. In addition, Vance et al.’s (2014) framework on HCN
professionals in local partnership roles provides a model for enhancing performance in hostcountry operations and contributing to knowledge management. The combination of the two
effectively illustrates the practices and behaviors of MNCs in host nations as well as the
viewpoint of the local employee.
The framework of Clark and Estes (2008) identifies three key influences that affect
organizational performance: knowledge, motivation, and organizational barriers (KMO). Also
known as the “Big Three” (Clark & Estes, 2008, p. 43), these essential elements highlight that
organizations do not reach goals when stakeholders do not have the knowledge they need to
execute their jobs. Moreover, goals are unreachable when the stakeholders lack motivation or
when organizational barriers prevent them from reaching their goals. Hence, to solve
performance problems, the organization must first examine its current performance against its

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current organizational goals. One can then create solutions and evaluate the effectiveness of
solutions (Clark & Estes, 2008).
Vance et al. (2014) provided a thorough framework that emphasized the importance of
the local HCN liaison (HCNL) in promoting knowledge transfer, improving organizational
performance, and creating a global workforce. They presented the HNCL model of the HCN
position with specific behavioral functions and discussed the critical role HCNs play as local
liaisons in MNCs. The proposed job components for the local HCNL are as follows: internal
change agent, talent manager, information resource broker, cultural interpreter, and
communications manager. The host country operation and the MNC will leverage these
components and associated behavioral functions to enhance organizational performance and
facilitate knowledge transfer. Vance et al. (2014) mentioned notable benefits for knowledge
transfer, organizational sustainability, and competitiveness when HCNs serve in different roles
within the company.
Employee Knowledge (Krathwohl, 2002)
According to Mahnke et al. (2005), knowledge is crucial for improving the performance
and competitiveness of MNCs in host countries—the acquisition and management of knowledge
are closely related to the success of MNCs. Anderson and Krathwohl (2001) adapted Bloom’s
taxonomy (Bloom & Krathwohl, 1956), which is a hierarchical organization of knowledge levels
based on learners’ abilities, and created a framework for classifying different types of knowledge
and cognitive processes in learning, including factual, procedural, conceptual, and metacognitive
knowledge.

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Procedural Knowledge
Procedural knowledge is the “knowledge of the how” (Anderson, 2005 pp. 102) and
includes the understanding of categories, classifications, and their links, which are intricate and
ordered knowledge types. Procedural knowledge includes cognitive-psychological model
theories, mental models, and schema collectively known as procedures (Alexandar et al., 1991;
De Jong & Freguson, 1996; Dochy & Alexander, 1995). These procedures describe how a person
understands the structure of a subject, interrelations of various pieces of information, and
collective dynamic of these components. Discipline-specific conceptual knowledge, or how
subject-matter experts view a phenomenon, is a subset of procedural knowledge (Goldman et al.,
2016).
Procedural knowledge can be divided into three subtypes: knowledge of subject-specific
skills and algorithms, knowledge of subject-specific techniques and methods, and knowledge of
criteria for determining when to use appropriate procedures (Armstrong, 2001). Subject-specific
skills and algorithms involve a series of steps, with the result considered fixed. Subject-specific
techniques and methods, meanwhile, involve more open and non-fixed results, reflecting the
expertise of experts in the field or discipline. Knowledge of criteria for determining when to use
appropriate procedures involves knowing the historical use of procedures. This knowledge is
often historical or encyclopedic, and while it may seem simpler and less functional than actual
procedure use, it is an important prelude. Procedures appear complex and abstract; they acquire
meaning as they are related to concrete situations and problems. The procedures, systems, and
business philosophies that the foreign parent company imparts to its subsidiaries and partnerships
in the host country comprise the procedural knowledge that is critical to the performance of
MNCs; this knowledge can have a direct impact on how the MNC operates and implements its

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strategies, which in turn can have a major impact on overall performance and success (Dhanaraj
et al., 2004).
The transfer of procedural knowledge plays a significant part in the relations of MNCs
and host country subsidiaries. Foss and Pedersen (2000) looked at the organizational context of
MNCs and knowledge sources of their subsidiaries to elucidate the transfer of procedural
knowledge within MNCs and the organizational variables that affect effective knowledge
transfer. Using a quantitative method, Foss and Pedersen (2000) collected information from more
than 2,000 subsidiaries in seven European countries using a questionnaire. They found that
knowledge from local clusters, network relations, and internal development in the subsidiary are
significantly positively related to the extent of knowledge transfer within MNCs, with the
transfer of internal knowledge happening more often than knowledge from networks and
clusters. They also showed how organizational practices and conditions, such as intra-MNC
trade, dependence, and autonomy, have a huge effect on the sharing of knowledge within MNCs.
Despite its large scope and the risk of being outdated, the study has highlighted the importance
of procedural knowledge in shaping MNCs’ footprint in the host market.
Knowledge transfer within MNCs is also an important source of competitive advantage
(Nunes & Simion, 2014). Nunes and Simion (2014) not only emphasized the value of knowledge
transfer for expansion and diversification in international markets but also recognize d the
importance of parent–subsidiary relations for competitive advantage. Their study established a
conceptual framework for the development, absorption, and diffusion of internal MNC
knowledge, with a focus on parent–subsidiary knowledge transfer. In addition, they examined
the impact of knowledge transfer on subsidiary performance and prescribed methods to facilitate
the transfer process. Their results demonstrated that the ability of MNCs to transfer knowledge

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among themselves is a key component of corporate competitive advantage. Nunes and Simion
(2014) claimed that one of the key ways through which MNCs differentiate themselves from
their local competitors is the creation and transfer of knowledge within organizations. They also
showed how MNCs’ distinctive networks contribute to the production, absorption, and
dissemination of internal knowledge. Notably, parent companies must share information with
their subsidiaries to strengthen their strategic position in terms of innovation and overall
performance. Nunes and Simion (2014) highlighted how crucial it is for MNCs to successfully
understand local processes in their host countries. Meanwhile, the study’s theoretical framework
seemed to lack empirical support.
In another study, Peltokorpi and Vaara (2014) discussed knowledge transfer in MNCs
and pointed out that an MNC’s ability to successfully share information within its internal
networks gives it a competitive advantage. In the context of knowledge transfer inside MNCs,
Peltokorpi and Vaara (2014) sought to provide a framework to explain the relations among
competence, networks, identity, and power in relation to language-sensitive recruiting.
Peltokorpi and Vaara (2014) conducted a mixed-methods study that surveyed 285 MNCs in the
Tokyo metropolitan area. Their findings suggested that language-sensitive recruitment has both
positive and negative effects on knowledge transfer in terms of communication skills, networks,
identity, and power, and that language skills alone are not sufficient for effective knowledge
transfer. The mismatch between HCNs’ low level of local involvement and their linguistic and
functional competence hinders knowledge transfer. In addition, while language is an important
source of power, the procedures of knowledge transfer in nations with strong status hierarchies
are complicated by power structures (Peltokorpi & Vaara, 2014). Meanwhile, the limitations of

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the study include the fact that Japan is the only scope of the empirical data . Nonetheless, it
showed the complexity of procedural knowledge and MNCs in host countries.
Conceptual Knowledge
Conceptual knowledge includes understanding of categories, classifications, and their
links, which are intricate and ordered knowledge types (Krathwohl, 2002). It comprises cognitive
psychological model theories, mental models, and schema. These schemas, models, and theories
describe a person’s understanding of how a subject is structured, how various pieces of
information are related to one another, and how these pieces work as a whole (Jones et al., 2011).
Discipline-specific conceptual knowledge, or how subject-matter experts view a phenomenon,
can be regarded as a subset of disciplinary knowledge (Krathwohl, 2002).
Conceptual knowledge has the three subtypes of knowledge of classifications and
categories, knowledge of principles and generalizations, and knowledge of theories, models, and
structures (Krathwohl, 2002). Understanding classifications and categories in the context of
MNCs requires knowledge of diverse corporate ownership models, psychological issues, and
time periods. Classifications and categories make up principles and generalizations, which then
guide analyses of phenomena or issues in the field. Understanding theories, models, and
structures entails understanding generalizations, principles, and how they relate to one another as
well as having a clear, comprehensive, and holistic understanding of a complicated phenomenon,
issue, or subject matter. This subtype differs from knowledge of generalizations and principles in
that it places more focus on a group of generalizations and principles connected to a theory,
model, or structure. It entails familiarity with the various paradigms, epistemologies, theories,
and models that various disciplines utilize to describe, comprehend, explain, and forecast
occurrences (Broudy, 2017). Owing to the tacit and non-tradable nature of specialized

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knowledge, external market mechanisms for knowledge transfer are relatively ineffective . The
effective management of conceptual knowledge can thus have a significant impact on the
performance of MNCs and the effective and efficient inter-organizational transfer of knowledge
(Gupta & Govindarajan, 2000). Within the realm of conceptual knowledge, Chinese companies
must grasp the importance of acculturation and management of host-nation perception.
Importance of Acculturation
Acculturation is the process of learning about the customs, beliefs, and behaviors of a
foreign culture; the concept includes the effects of such learned information on how people
conceptualize their identities and social roles (Luedicke, 2015). Geppert and Williams (2006)
examined the ways in which local managers and employee representatives in subsidiaries
respond to demands for global uniformity and consistency made by MNCs. They examined the
main points of contention between the national business system and globalization approaches,
assessed the current debate on MNCs’ social practices from the perspective of the national
business system approach, and focused on the function of key local actors (employees and
managers) in MNCs. Their qualitative study used information from 30 expert interviews
conducted at headquarters and subsidiary levels. They also analyzed company documents and
publicly available company and sector information. Geppert and Williams (2006) found that the
more socially entrenched the local subsidiary is in a highly networked corporate system, the
more complex the application of global techniques, and the more idiosyncratic the local politics
and power resources. This social entrenchment pointed to the acculturation of the local
subsidiary. Geppert and Williams (2006) also noted that local managers may have more
bargaining power if their subsidiary has a strong strategic position within the MNC and is
financially well off, even if the company attempts to standardize local practices globally through

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an imposed and centralized approach. Their study highlighted how the local business
environment affects the operations of MNC subsidiaries and how subsidiaries can operate
relatively autonomously in the host country, affecting their profitability and strategic decision -
making in a global context. However, it is now outdated and lacking in quantitative data.
More recently, Elia et al. (2019) analyzed innovation performance to clarify the
importance of acculturation. To ascertain how cultural diversity affects the ability of crossborder alliances and offer insights, Elia et al. (2019) used a quantitative study of 161 strategic
alliances formed between 1987 and 2010 by 31 MNC biotech subsidiaries. They concluded that
subsidiaries of MNCs tend to have lower levels of innovation when their alliance partners have a
different cultural background from their home and host countries, thereby emphasizing the
importance of acculturation. However, their study also found that exploratory partnerships have a
moderating effect that mitigates the detrimental impact of cultural diversity on the subsidiary ’s
ability to absorb information from its partners and innovate. Despite the limitations of focusing
on the biotechnology industry and ignoring other aspects of diversity, their study contributes to
the literature by stressing the need for effective acculturation strategies to leverage diverse
cultural backgrounds in MNCs’ subsidiaries for improved innovation (Elia et al., 2019).
The elements of ownership, location, and internalization advantage that motivate an
MNC to engage in knowledge inflows were investigated by Tseng (2015) in a study on the
relation between an MNC’s desire to achieve internalization benefits and the amount of internal,
multi-type knowledge flowing into its foreign subsidiaries. Tseng (2015) used questionnaires
with 100 valid responses to test the validity and reliability of the research variables: the MNC’s
reason for internalization, importance of a subsidiary to the MNC, and local experience of the
subsidiary. Tseng (2015) found that an MNC’s desire to gain advantages through internalization

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influences the amount of knowledge inflow into its foreign subsidiaries. In addition, the local
experience and unique characteristics of subsidiaries may act as moderators in the relation
between the MNC’s motivation to gain internalization advantages and knowledge inflow from
the headquarters or other subsidiaries. Despite the fact that this study only included MNCs in
Taiwan, it demonstrated the value of acculturation and how the management of internalization
advantages affects the knowledge that MNCs’ subsidiaries receive (Tseng, 2015). MNCs must
manage both acculturation in foreign countries and the perception of the host nation.
Management of Host-Nation Perception
Conceptual knowledge and perception management are intimately intertwined perception
affects people’s understanding, beliefs, and behaviors. Kozan (2022) attempted to identify the
variables that can reduce rent extraction—the process of gaining economic benefits in a political
exchange relation with host country actors—for MNCs. Kozan (2022) achieved this using
conceptual knowledge of the model of the firm-specific rent extraction risk that MNCs face
when conducting business in a host country using resource dependence theory and literature on
international business. The study’s findings indicated that the degree of rent extraction is a
function of the power disparity between MNCs and the main political actor. However, economic
resources, human capital, experience gained in the host country and abroad, and social and
political capital are potential mitigating factors for this power imbalance (Kozan, 2022). Kozan
(2022) highlighted the importance of MNCs’ ability to manage their host country’s perceptions
to mitigate rent extraction. However, it has certain limitations, such as focusing on the MNCs’

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perspective without addressing factors that could strengthen or worsen the political actor’s
position of power.
Vance and Paik (2005) attempted to extend the concept of MNC knowledge management
to include the active participation of HCNs. They also sought to identify how HCNs can acquire
conceptual knowledge on the parent company and host nation that can increase productivity in
overseas operations and facilitate knowledge creation and sharing within the MNC. Vance and
Paik (2005) conducted exploratory field research to identify HCNs’ learning practices that could
increase productivity in overseas subsidiaries. For their qualitative study, Vance and Paik (2005)
interviewed 51 middle managers and human resources representatives from 49 MNC
subsidiaries. They found 12 types of potentially beneficial HCN learning points associated with
higher knowledge absorptive capacity in MNCs, including the strategy and culture of the MNC,
coaching for expatriates, orientation for new employees, and the MNC’s language choice (Vance
& Paik, 2005). They did not quantify the data, but the study emphasized the importance of
understanding and dealing with the perceptions of local employees in the host country.
Yamazaki and Yoon (2016) sought to overcome the barriers to understanding the
complexity of MNCs, particularly in relation to performance evaluation systems, perceptions of
fairness in terms of transparency, and the absence of group biases that include gender, religio n,
and ethnicity, and their variation across different host nations. Using a quantitative approach,
they collected data from 903 Asian managers working for subsidiaries of MNCs in Thailand,
Malaysia, China, Hong Kong, and Japan. The study found that while Asian managers’
perceptions of transparency and the absence of group bias in performance evaluation systems are
likely to vary by country, these perceptions are significantly correlated with the managers’ job
satisfaction in most geographic areas. Overall, Yamazaki and Yoon (2016) provided empirical

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support for the notion that job satisfaction depends on how adequately host country employees
perceive the management of MNCs through performance appraisals.
Metacognitive Knowledge
Metacognitive knowledge includes the awareness and understanding of one’s own
cognition as well as knowledge about cognition in general (Pintrich, 2002). Since the creation of
Bloom’s taxonomy (Bloom, 1956), the emphasis on increasing students’ self-awareness and
responsibility for their own knowledge and ideas has become a defining feature of learning
theory and research. The majority of researchers concur that as students mature, they become
more cognizant of their own thinking and more educated about cognition in general (Barab et al.,
2007; Mokhtari & Reichard, 2002); as they act on this awareness, students will typically learn
more effectively. Krathwohl (2002) developed the general framework for metacognition that is
based on the framework of Flavell (1979), who proposed that metacognition includes awareness
of strategy, task, and personal characteristics. Krathwohl (2002) divided metacognitive
knowledge into strategic knowledge, knowledge about cognitive tasks, and self-knowledge.
Strategic knowledge involves understanding universal learning, thinking, and problem-solving
techniques, such as organization, rehearsal, and elaboration (Pressiey et al., 1987). Regarding
different cognitive activities and their demands, contextual and conditional knowledge is
essential (Hartman, 2001). Self-knowledge is crucial for students to prepare for exams and
understand their aptitudes for learning and cognition (Pintrich, 2002). Being aware of the depth
and breadth of one’s knowledge set is essential for effective learning (Bereiter & Scardamalia,
2003). To effectively codify and transmit information across many cultural contexts, MNCs
require metacognitive understanding, which is essential for performance as this dimension
facilitates the elimination of site-specific cultural path dependency and allows knowledge to be

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sent back to the headquarters in a way that is understandable to numerous participants (Vlajćić et
al., 2019).
Closely related to metacognitive knowledge, help-seeking is a process that is necessary
for self-regulated learning and can influence how people and organizations approach difficult
tasks (Undorf et al., 2021). Delios et al. (2008) examined the impact of an MNC’s product
diversification strategy on the markets in which it operates and the relation between the host
country’s institutional environment and the subsidiary’s performance. Specifically, they
examined the impact of an MNC’s firm-level product diversification plan and product
diversification strategy on host country performance. Diversification strategy development
involves collaboration between the management of multinational firms and strategic researchers,
with consideration for overall and host-nation specific diversification goals. To determine the
exit rates of subsidiaries, Delios et al. (2008) collected data from a sample of 12,992
international subsidiaries of 1,563 Japanese companies. They discovered a correlation between
lower exit rates—the likelihood of an MNC’s subsidiaries ceasing operations in a particular host
country—and greater product diversity within the country, which describes the breadth and
variety of products the company offers in each host country in which it operates. Given the
complex interactions between corporate structure and institutional support, Delios et al. (2008)
noted the need to consider tactics used by MNCs in their respective host country markets. They
highlighted the importance of consulting with strategy researchers to pursue a comprehensive
market diversification strategy and the need to seek help when creating all-encompassing
diversification plans that account for local and global ramifications, both of which strengthen the
company’s competitive advantage.

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Klopf and Nell (2018) investigated the political embeddedness of MNC subsidiaries and
their links to local political actors, such as governments, industry associations, and trade unions,
as well as geographical and contextual distance, host country governance, and political stability.
They applied a quantitative methodology through the use of questionnaires distributed to senior
executives from 124 European manufacturing units. Their main finding was that the political
embeddedness of a subsidiary increases with the geographical distance between the subsidiary
and the home country of its headquarters. Klopf and Nell (2018) also shed light on how MNCs
navigate their local political environment and seek support, guidance, and legitimacy from local
political actors in their host countries. Seeking help enables subsidiaries of MNCs to understand
the local environment, gain access to networks, and benefit from the political embeddedness in
the host country (Kloph & Nell, 2008). These approaches help minimize the risks of foreignness
and increase the success of MNCs in the host country.
Therefore, employee knowledge greatly contributes to the performance of MNCs in host
nations and their competitiveness in these markets. The acquisition and management of
knowledge relating the organization and field of interest, organizational operation, concepts of
acculturation, host-nation perceptions, and consultation with strategy researchers in help-seeking
efforts greatly impact performance. Identifying knowledge gaps related to Japanese employees’
disengagement with MNCs could help offset this indifference. Employee motivation is part of
the KMO.
Employee Motivation
Employee motivation has a direct impact on output, job satisfaction, and overall
performance and is crucial to the success of an organization (Ali & Anwar, 2021). Motivated
employees have greater commitment, zeal, and dedication to their work, all of which foster

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higher levels of creativity and teamwork (Ali & Anwar, 2021). In the context of MNCs,
employee motivation is even more important owing to the complicated issues of cultural
diversity and geographical dispersion (Taylor et al., 2008). According to Vroom (1964),
motivation theory suggests that the “choices made by a person among alternative courses of
action are lawfully related to psychological events occurring contemporaneously with the
behavior” (p. 15). For MNCs to maximize employee engagement and improve performance in
host countries, they must understand and effectively manage these elements. Bandura (1977)
explored the concept of motivation using self-efficacy theory (SET), whereas Eccles (1983)
expanded the broader understanding of expectancy-value theory (EVT). SET is a critical
personal resource that buffers the negative relation between workplace exclusio n and job
performance (Bandura, 1977), whereasEVT has received significant empirical validation for its
broad applicability for understanding and motivating employee behavior (Fairbank & Williams,
2001).
Self-Efficacy
SET is a motivational theory and a subset of Bandura’s (1986) social cognitive theory.
An individual’s self-efficacy relates to their confidence in their ability to carry out the behaviors
required to achieve particular performance goals and their capacity to exercise control over their
own behavior, motivation, and environment (Bandura, 1986). Cognitive self-evaluations
influence the objectives for which individuals strive, the amount of effort exerted to attain goals,
and the possibility of achieving specific levels of behavioral performance. Bandura (1977)
identified four main pillars of influence that shape people’s perceptions about their own efficacy.
First, enactive attainment examines how both positive and negative experiences might affect a
person’s capacity to carry out a certain activity. A person is more likely to feel competent and

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perform well in a closely related activity if they have previously succeeded at it (Bandura, 1977).
Second, watching another person who is quite similar to oneself successfully model the desired
task or behavior can impact efficacy. A person can observe another perform and contrast their
own competence with that of the other person (Bandura, 1977). Third, praise and criticism of a
person’s performance or capacity for performance have an impact on verbal persuasion
(Redmond, 2010). Lastly, one’s physical feeling has an impact on their physiological states, and
one’s interpretation of this emotional arousal affects how effective they believe their beliefs to be
(Bandura, 1977). The combination of these four pillars influences an individual’s motivation,
learning, self-regulation, and achievement (Schunk, 2012).
Takeda et al. (2022) investigated the assimilation of local staff in foreign subsidiaries of
MNCs, focusing on the assimilation of ethical values. They examined local employees from
collectivist cultures in the foreign subsidiaries of MNCs with respect to corporate acculturation
strategies while tracing how cultural distance influences acculturation. For the quantitative
analysis, Takeda et al. (2022) collected information from 476 Thai nationals working for MNCs
in Thailand, the UK, and Japan. They concluded that local staff in the MNCs’ foreign
subsidiaries tended to adopt integration rather than separation strategies, demonstrating the
acculturation of their values toward the domestic cultural values of their MNCs. This is
especially true for employees from collectivist cultures, where the group and its collective goals
take precedence over the individual’s personal goals. Cultural distance—the degree of
divergence or dissimilarity between two cultures—affects the acculturation process, with greater
cultural distance leading to higher levels of acculturation (Takeda et al., 2022). However, Takeda
et al. (2022) only studied three different Thai companies and the self-efficacy of employees; they
did not directly examine working in the host country. A consequence is that the study could have

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a one-country effect. Nevertheless, its findings offer valuable insights on acculturation and value
adaptation, which affect the individual’s ability to adapt, learn, and integrate in a new cultural
environment.
Shen et al. (2022) examined the effects of functional language proficiency on host MNC
employees’ moral disengagement, their ability to rationalize unethical behavior, and their
unethical pro-organizational behavior (UPB) in MNC host country subunits. They defined
functional language proficiency as an employee’s ability to use the language officially
designated for verbal and written use within the MNC network. UPB refers to employees’
actions that violate moral standards or principles while benefiting the organization. Shen et al.
(2022) investigated the relation between UPB, moral disengagement, and functional language
competence in a quantitative study involving 309 Chinese employees working in the Chinese
subsidiaries of Western MNCs. The results showed that the company’s functional language
competence has a direct influence on the language groups. In addition, moral disengagement is a
mediator between language group identification and UPB, suggesting that moral disengagement
helps to partially explain how language group identification influences unethical behaviors
outside the company. The influence of the relation between language proficiency and language
identification on self-efficacy is due to the effects on employees’ sense of belonging,
communication effectiveness, and perceived ability to navigate within MNCs. Notably, Shen et
al. (2022) did not directly address self-efficacy in host country employees.
Self-efficacy greatly impacts the operation of MNCs in host nations. A high sense of selfefficacy translates to high employee motivation and performance. MNCs would benefit from
investment in the enhancement of employee self-efficacy in the host nation. Self-efficacy also
offers an area of attention to combat Japanese employees’ detachment from their Chinese MNCs

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(Chen et al., 2001). The consideration of employee expectancy value also contributes to the
evaluation and understanding of employee satisfaction.
Expectancy Value
In coining EVT, Eccles (1983) proposed that decisions leading to success are based on
the individual’s subjective task values and expectations of those values. Subjective task value is
the importance placed on the result, whereas expectation pertains to how likely one can attain the
result due to one’s actions. Eccles (1983) deconstructed task value into four units. Attainment
value is the meaning to oneself of working well on a certain task. Intrinsic value is the degree of
one’s own pleasure (Wigfield & Eccles, 2000). Utility value is how one perceives the usefulness
of the task for current and future goals. Cost belief is the perceived effort required (Perez et al.,
2019). The expectancy value model postulates that several factors influence one’s expectations
of one’s own chances for success and the importance of a given activity. Environmental factors
also play a role: cultural milieu, socializers’ views, actions, individual qualities (e.g., abilities,
prior experiences, objectives, self-concepts, beliefs, expectations, and interpretations) (Eccles,
1983). Therefore, both expectancy and value directly influence performance, persistence, and
choice (Eccles & Wigfield, 2002).
Hsu et al. (2021) assessed the effect of expectancy value and motivation on knowledge
transfer between expatriates and HCNs in the Asia Pacific region. Their qualitative and
quantitative study used a sequential explanatory mixed methods approach. They found that two
conditions generally govern the transfer of information regardless of whether the expatriate or
HCN is the sender or receiver. The first condition is the receivers’ perceived value of the
transferred information—the more valuable they perceive the information to have, the more
receptive they are. The second condition is the perceived motivation of the senders; if the

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receivers perceive that the senders are highly motivated to pass the information, the receivers are
more willing to learn. However, Hsu et al. (2021) observed a variation in this pattern when
HCNs send information to an expatriate of a different race. This variation stems from the
differences in culture that make the HCNs reluctant to share knowledge. Specifically, Hsu et al.
(2021) reported that Asian HCNs tend not to consider Western expatriates to be part of their
ingroup, resulting in the lower knowledge transfer. Michailova and Hutchings (2006) also found
that Chinese HCNs are more open to sharing knowledge in their ingroups. Japanese HCNs may
be more willing to engage in knowledge transfer with Chinese MNCs.
Pinto et al. (2020) investigated the expectancies and motivation of self-initiated
expatriates (SIEs) as predictors of goal-specific achievements and overall assignment success.
They used a web-based approach to identify SIEs via mailed invitations. They performed the
survey using a software package. To assess goal-specific achievements, Pinto et al. (2020) used
host adjustment, professional achievements, and family achievements as indicators. Overall
achievement success was based on the respondent’s perception of their overall success in their
assignment. Pinto et al. (2020) found that the SIEs’ expectations of competence in living,
working abroad, and motivational goals predict assignment-specific achievement and overall
success. Higher expectations in these aspects translate to achievement of assignment-specific
goals and overall success. Among the demographic characteristics of age, education, and home
religion, education was a unique predictor of expatriate expectancies, whereas age and education
were negative predictors of professional achievements.
Therefore, employee motivation is an important predictor of employee performance and
organizational success. Investing in efforts to understand and improve employee motivation sets

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MNCs up for greater success in their host-nations (Ramlall, 2004). Organizational influences are
the final factor to consider while performing a KMO analysis.
Organizational Influences
Organizational influences relate to the structures and processes for obtaining conformity,
commitment, and compliance relative to organizational goals. Some organizational influences
include leadership, organizational structure, and organizational culture (Lin & McDonough,
2011; Tsai, 2019). Leadership is the authority drawn from managerial ability and affects
organization efficiency (Tsai, 2019). Organizational structure details how systems, people, jobs,
processes, and groups contribute to the achievement of organizational goals (Ahmady et al.,
2016). Organizational culture echoes the shared views of the members of an organization and,
therefore, sets organizations apart. It is one of the important organizational influences as it
impacts decision making, innovation processes, current strategies, and future changes
(Schlesinger, 2017).
Organizations are critical to the formation and maintenance of the norms, values, and
attitudes that govern employee interactions, decision-making, and goal achievement (Otwori &
Juma, 2015). Gallimore and Goldenberg (2001) used the ideas of cultural models and settings to
explain this. They explained cultural models as conventional understanding or shared mental
schemas about how the world should or should not work within a society. Cultural models reflect
historically developed and shared methods of perceiving, thinking, and memorizing possible
responses to adaptive difficulties, possessing behavioral, cognitive, and emotional components.
Gallimore and Goldenberg (2001) explained cultural settings as situations in which individuals
come together to engage in cooperative actions directed toward a common goal. These
environments, which occupy an ecological niche, can affect people in a range of settings,

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including homes and schools. Gallimore and Goldenberg (2001) emphasized the complicated
interplay of elements that influence cultural models and environments, highlighting the need to
consider the ecological, cultural, interactional, and psychological characteristics that define the
subjective reality of activity environments. Although their work focuses on the school setting, it
applies to MNCs and host country performance as it sheds light on the use of cultural factors to
improve outcomes and can have far-reaching implications for organizations operating in
different cultural contexts.
Cultural Literacy
According to Barrette and Paesani (2018), cultural literacy includes understanding
language, customs, and cultural practices, as well as interpretation, teamwork, problem-solving,
and reflection in a particular cultural setting. The importance of cultural literacy stems from its
function in promoting meaningful contact in a variety of cultural contexts, comprehending
cultural subtleties, and enabling successful communication. Barrette and Paesani (2018) also
drew attention to the vital role of cultural literacy in encouraging critical thinking and a reflective
grasp of one’s education in a world with a varied population.
Cheng et al. (2022) explored neuroeconomic understanding—a framework that combines
economics, psychology, and neuroscience—to elucidate how cultural diversity affects the
cognitive system involved in the economic decision-making of MNCs. They used neuroscience
technologies to explain how cultural differences affect brain chemistry and how this impacts the
economic decision-making of companies. With a focus on cultural diversity at the executive
level of MNCs, Cheng et al. (2022) adopted neuroeconomics as a scientific solution to analyze
and resolve cognitive differences at the executive level. They found that cultural diversity has a
significant impact on decision-making processes at MNCs, especially at the executive level.

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They focused on the reflection of cultural experiences and the brain’s response to cultural
diversity at MNCs, highlighting the importance of cultural competence. They emphasized the
significant impact of cultural literacy through cultural diversity on decision-making processes.
Kanso and Nelson (2007) investigated the criteria for endowing importance in the US
headquarters of MNCs when selecting media for international advertising. They collected data
using a mixed-methods approach that included 84 survey respondents and interviews with
marketing and advertising executives. Their study addressed the importance of considering
cultural nuances and preferences when selecting media in different countries, the impact of
cultural differences on advertising strategies, and the need for MNCs to develop cultural literacy
to develop successful global advertising campaigns. Their results suggested that US MNCs
prioritize audience reach, brand consistency, and cost effectiveness in their media selection
decisions for global advertising. Kanso and Nelson (2007) also emphasized the need to adapt
advertising materials to specific cultural settings and the potential drawbacks of a one -size-fitsall strategy for international advertising. They noted the importance of taking cultural
considerations into account when developing global advertising campaigns and how
multinational companies need to adopt a culturally aware strategy to succeed.
Qin et al. (2008) conceptualized the interaction between national culture and subsidiaries’
roles during knowledge transfer in MNCs. They illustrated the links between knowledge transfer
and subsidiaries’ roles, cultural distance and knowledge transfer, and knowledge transfer and
subsidiaries’ strategic roles. They examined the relation between cultural distance and subsidiary
roles in the knowledge transfer process in MNCs using an environmental strategy-performance
framework that integrated internal resource and external environmental perspectives. Qin et al.
(2008) used a case study of knowledge transfer in an MNC in China to contextualize the

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proposed model. Their findings showed that national culture has a significant impact on the
knowledge transfer process between the MNC’s headquarters and its subsidiary in China. The
study also demonstrated a relation between the strategic functions of the subsidiary and patterns
of knowledge transfer, with the subsidiary’s tasks changing as its capabilities and knowledge
increased. The findings drew attention to the importance of cultural literacy in the context of
knowledge transfer in MNCs, particularly considering the influence of national culture on the
knowledge flow and strategic functions of subsidiaries. Cultural literacy affects the dynamics of
knowledge transfer processes. Moreover, MNCs must understand and navigate cultural
idiosyncrasies to effectively share information within the network (Qin et al., 2008).
Indeed, consideration of cultural literacy is crucial for the survival of MNCs in host
nations. Without proper understanding of the host-nation’s culture and an openness to embrace
cultural differences, MNCs are bound have challenges with setting up and eventually turning in
profits (Schlesinger, 2017). With existing evidence on the differences in cultures between the
Chinese and Japanese (Li & Putterill, 2007), Chinese MNCs must invest in and commit to
cultural literacy in the Japanese host nation context.
Commitment to Cultural Literacy
The commitment to cultural literacy means not only recognizing and appreciating the
culture of the host country but also actively incorporating it in the MNC’s business activities
(Shliakhovchuk, 2021). DeNisi et al. (2021) outlined the critical research concerns in this area
and addressed the difficulties that MNCs face in managing and evaluating the performance of
their employees, particularly those in areas far from the parent company and with different
cultural backgrounds. They identified four problems that MNCs face in performance
management and appraisal: questioning the fundamentals of performance management,

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identifying the optimal combination of strategies and measures, balancing the need for
consistency and cultural sensitivity in different countries, and addressing the particular
difficulties associated with managing and evaluating the work of employees working in different
environments in locations far from the parent company. DeNisi et al. (2021) highlighted the need
for additional research to address the identified gaps and challenges in effectively managing
employee performance in different cultural contexts, as well as the need for a deeper
understanding of cultural dimensions and the influence of national cultures on performance
appraisal practices. They showed how differences in country cultures, legal frameworks, and
economic conditions can affect the evaluation and management of performance . They also
explained the importance of understanding different cultural contexts when designing and
implementing effective performance management systems in a range of cultural contexts.
Taylor et al. (2008) examined the relations among organizational culture, human resource
management, top management team orientations, and organizational commitment to assess the
impact of these factors on fostering organizational commitment in MNCs. They used a
quantitative approach and analyzed data from 1,664 employees in 39 subsidiaries of 10 MNCs.
According to the study, organizational culture and the HRM system have an impact on employee
engagement. Additionally, two top management team orientations—geocentric and global
orientation—have a particularly strong impact on employee engagement in MNCs. Overall, the
results were consistent with the theory that organizational culture, human resource management,
and top management team attitudes are critical to employee engagement in the MNC
environment (Taylor et al., 2008). The results highlight the need to adapt organizational
operations to the cultural characteristics and expectations of employees in different

83
environments, which in turn point to the role that cultural literacy plays in improving
organizational commitment in MNCs.
Vance and Paik (2005) extended the concept of knowledge management in MNCs to
include the active engagement of HCNs. They referred to the theoretical concept of absorptive
capacity, or the ability to recognize, process, and apply new information. To identify the types of
HCN learning that can enhance performance in expatriate assignments, Vance and Paik (2005)
conducted an exploratory field study. They interviewed 51 middle managers and human
resources representatives from 49 international subsidiaries of MNCs with headquarters in six
countries. They found 12 sets of potentially beneficial HCN learning strategies that support
higher absorptive capacity. These learning opportunities included topics such as orientation for
new hires, language of MNCs, cross-cultural awareness in MNCs’ home countries, technical
management skills, supervision, coaching, exposure to expatriates, and the strategy and culture
of MNCs. Vance and Paik (2005) emphasized the importance of HCNs in issues such as
intercultural awareness in the MNC’s home country. Greater awareness, understanding, and
commitment toward other cultures could increase receptivity to information from the host
country and improve absorptive capacity.
Diverging narratives and notions, as well as plural cultures and heritage, define modern
societies and call for super-diversity (Maine et al., 2019). Cultural literacy aims at addressing
and promoting positive cultural encounters between different cultures. Organizations are tasked
with pursuing cultural literacy enhancement, especially where they venture into different
countries (Shliakhovchuk, 2021). For Chinese MNCs setting up in Asian nations, some
similarities offer the comfort of familiarity; however, major differences in cultures demand that

84
efforts are invested in the familiarization and appropriation of relevant responses (Maine et al.,
2019; Michailova & Hutchings, 2006; Li & Putterill, 2007).
Therefore, organizational influences impact the performance of MNCs in host countries.
Without proper efforts to control these influences, especially cultural literacy, organizations risk
their productivity in the host country (Taylor et al., 2008). The reason is that organizational
influences are part of the KMO effect and would account for a performance analysis. Specific to
the present research, understanding Japanese HCNs cultures would equip Chinese MNCs with
the knowledge to handle issues in a way that honors Japanese culture. For instance, conflict
resolution differs between the two cultures and an awareness of the Japanese approach, which
negates dominating approaches even between superiors and juniors, would contribute to
employee motivation and, consequently, productivity (Tae-Yeol et al., 2007).
HCNL Component Model
The KMO variables of the modified framework of Clark and Estes coupled with the local
HCNL model of Vance et al. (2014) shed light on the problem of practice among Japanese
employees working at Chinese MNCs. The model suggests that HCNLs can effectively facilitate
information and knowledge sharing between expatriates and the local workforce. The model
consists of five main parts with different behavioral roles for each part, namely, cultural
interpreter, communication manager, information resource broker, talent manager, and internal
change agent. Together, they form the HCNL’s multidimensional role, which has a significant
impact on knowledge management and the promotion of effective communication and
collaboration in MNCs.
The role of the cultural interpreter includes resolving conflicts arising from cultural
differences, clarifying communication processes and events, and acting as a cultural guide for

85
successful acculturation. By helping expatriates understand and navigate their new country ’s
cultural idiosyncrasies and customs, cultural interpreters promote clear communication and
reduce misunderstandings. In their role as cultural interpreters, HCNLs could, for instance, lead
seminars or training sessions to assist expatriates in understanding cultural norms,
communication styles, and business etiquette in the host country. They could also act as
mediators in cross-cultural disputes that may arise within the company.
The communication manager component oversees the information exchange between
HCNs and expatriates in the host country, ensuring both parties understand and make sense of
decisions, events, and organizational communication. The communication manager position also
ensures that both HCNs and expatriates perceive and understand message s correctly. For
example, an HCNL in this position may be responsible for correctly translating important
organizational documents or messages into the local language to ensure that all employees,
including expatriates, understand them. HCNLs could also schedule regular meetings or forums
to promote open dialogue and understanding between expatriates and HCNs.
The information resource broker component enables HCNs and expatriates to share
information and expertise, thereby fostering collaboration and trust that facilitate efficient
knowledge transfer. Within the company, the information broker actively promotes the exchange
of knowledge and resources, encourages teamwork, and helps account for different points of
view. For example, an information resource broker HCNL may develop platforms or systems to
facilitate the sharing of best practices, information, and skills between local employees and
expatriates. Information brokers can also organize buddy or mentoring programs to promote the
exchange of knowledge and expertise.

86
The talent management component helps both expatriates and HCNs develop and
integrate, thereby improving their ability to absorb information and enhancing the learning of the
organization as a whole. The talent manager HCNL is responsible for identifying and developing
talent within the host country’s workforce and promoting opportunities for knowledge and skill
sharing. In this role, an HCNL can identify high-potential local employees and provide them
with opportunities for professional growth and development. To promote knowledge transfer and
skills development, they can also form cross-functional teams with HCNs and expat employees.
The internal change agent HCNL supports expatriates’ adaptation and learning by acting
as a facilitator and promoting mutual understanding, commitment, and identification with the
MNC’s objectives within the host country workforce. The internal change agent champions a
common purpose and understanding among employees, promotes flexibility, and cultivates an
environment where learning never stops. An HCNL can take the lead on projects that promote
cultural inclusion, such as planning cultural awareness events or running campaigns to promote
diversity and inclusion. They can also lead discussions and workshops aimed at aligning the
organization’s goals and values with local lifestyles.
Vance et al. (2014) explained that HCNLs improve organizational performance and
knowledge transfer through the following mechanisms: information sharing, which fosters an
environment of open communication and collaboration; preservation of organizational memory,
which occurs when important knowledge and experience is transferred and retained within the
organization; and leveraging local expertise by integrating it in the organization ’s larger
knowledge base, which enhances overall organizational performance and improves the ability of
the foreign subsidiary to absorb and apply new knowledge.

87
Conceptual Framework
This section presents the conceptual framework that serves as the basis for th e present
investigation. According to Maxwell (2012), the conceptual framework refers to the researcher’s
views and ideas on the topic of inquiry. It serves as the basis for the researcher’s perspective,
guides the investigation of the phenomenon, and presents possible solutions to the research
objectives of the study (Maxwell, 2012). Therefore, the conceptual framework encompasses the
researcher’s object of inquiry; the concepts, assumptions, expectations, beliefs, and theories that
shape the study; the connections between these various elements; and the way these connections
contribute to the object of inquiry of the study (Maxwell, 2012; Merriam & Tisdell, 2016).
The present study utilizes a modified version of the framework of Clark and Estes (2008);
it is a systematic and analytical approach that explains the motivational and knowledge goals and
identifies the current and desired performance levels of HCNs—Japanese workers—employed
by Chinese MNCs in Japan. The study also incorporates the HCNL role components proposed by
Vance et al. (2014) to identify the degree to which Japanese local employees are working to help
Chinese MNCs expand successfully. This study aims to determine the degree of engagement that
Japanese employees have with Chinese MNCs and offer possible strategies to increase the
effectiveness of the Chinese MNCs’ expansion in the Japanese market. This study also aims to
identify the shortcomings that MNCs can address to improve future performance. To assess these
factors, this study used surveys as the main method of data collection, conducting a
comprehensive assessment to provide research-based remedies for these barriers.
The conceptual framework of the study consists of three components (see Figure 1). The
HCNs, or the Japanese workers employed by Chinese MNCs, are the primary stakeholder group
of interest. The stakeholder objective is to determine the primary factor among the KMO

88
influences that hinder the integration of Japanese employees in Chinese MNCs. The plan of the
study begins with a comprehensive illustration describing the basic KMO influences. Next, the
study introduces the HCNL components. HCNs serving as cultural interpreters, communication
managers, information resource brokers, talent managers, and internal change agents will lead to
the enhancement of knowledge transfer and organizational performance. Figure 1 shows how
organizations encompass both Japanese employee knowledge and motivation, and how, by
leveraging the expertise, knowledge, and unique insights of the HCNL components, HCNs can
significantly enhance the performance of MNCs in host country operations. This study highlights
that if employees lack the necessary knowledge and skills to perform the activity effectively,
they are more likely to fail.
Figure 1
Gap Analysis Model

89
Summary
This chapter presented a thorough analysis of the literature on the many aspects of the
difficulties encountered by Chinese MNCs in their host countries as a result of their global
development. This chapter examined the phenomenon through the variables of motivation,
knowledge, and organizational influences. The study uses a framework based on the models of
Clark and Estes (2008) and Vance et al. (2014) to present a comprehensive and descriptive
picture, although it does not in itself offer a specific recommendation for improving the
performance of Chinese MNEs in host countries, such as Japan. The chapter also describes the
obstacles and variables faced by Chinese MNCs in their host countries and points out the
knowledge gap on how Chinese MNCs operate in Japan. The next chapter focuses on the
research approach that the study will apply to gather pertinent data as evidence for the
researcher’s questions. It will provide an overview of the research design, research setting, data
sources, and ethical, credibility, and trustworthiness considerations.

90
Chapter Three: Methodology
This study aimed to elucidate the impact of knowledge, motivational, and organizational
factors (Clark & Estes, 2008) on HCNs, or Japanese local employees, working for Chinese
MNCs in Japan through the lens of the HCNL role framework (Vance et al., 2014). As
mentioned in previous chapters, the ideal target for the problem of practice would be to directly
speak with strategy leaders overseeing the expansion of Chinese MNCs to learn about the
realities of such expansion. However, this was a challenging route as these leaders are based in
mainland China; the present researcher lacked access to this approach. Therefore, this study took
the approach of learning the lived experiences of another source, the Japanese employees
working in the Chinese MNCs expanding in Japan, via surveys.
This chapter begins with an overview of the research questions followed by the study’s
population and sample, participants, and instrumentation. It proceeds with an explanation of the
data collection procedures, data analysis, reliability and validity tests, ethical considerations, and
limitations and delimitations, concluding with the researcher’s positionality.
Research Questions
1. What are the knowledge, motivation, and organizational assets and challenges of
Japanese employees with respect to their work in Chinese MNCs?
a) What are the demographic group differences in knowledge, motivation, and
organizational support?
b) What is the relation between knowledge, motivation, and organizational support
with the HNCL components?
2. Which HCN liaison role components do Japanese employees report practicing in their
work in Chinese MNCs?

91
a) What are the demographic group differences within the HCNL components?
b) Which HCNL components have the most room for Chinese MNCs to improve to
enhance organizational performance?
3. What themes and strategies do Japanese employees recommend to enhance their
experience and effectiveness with working in Chinese MNCs?
Population and Sample
This study used an online survey to address the research questions. It included both
Likert-style items, analyzed using descriptive statistics, and open-response questions. This
method enabled the convenient gathering of both numerical data and qualitative responses in a
structured manner for analysis (Robinson & Leonard, 2018). Online surveys are a convenient
way to obtain data that would otherwise be inaccessible (Robinson & Leonard, 2018). Through
the factors of HCNL role components (cultural interpreter, communication manager, information
resource broker, talent manager, internal change agent) and the KMO variables, the present study
focused on Japanese employees of Chinese MNCs in Japan. To address the research questions,
the study gathered data from a large number of participants, with a target of 200 completed
surveys. While other qualitative methodologies, such as interviews, could have enabled the
collection of data to address the research questions, this study opted against interviews with a
large sample size for being overly time-consuming (Merriam & Tisdell, 2015).
Participants
The survey’s target population consisted of HCNs—Japanese employees—working for
Chinese MNCs in Japan. The survey targeted Japanese individuals who physically resided and
worked in Japan. In this field study, the principal investigator did not set quotas for age, sex, or

92
demographic characteristics. The survey did not restrict the size of the company but limited the
type to Chinese MNCs based in Japan.
The study achieved a target sample of 200. Israel (1992) explained that for quantitative
analysis, a sample size of 200 to 500 is acceptable. The margin of error for a 200-person sample
is 6.89% (Raosoft, 2004). The choice regarding sample size balanced the requirements for
accuracy, time for data collection, and budget. The study employed purposive sampling to ensure
a consistent sample size. Notably, purposive sampling ensures that the sample reflects the
characteristics of interest by allowing researchers to intentionally select participants based on
specific criteria relevant to the objectives of the study (Etikan et al., 2016). Moreover,
researchers can improve the relevance and application of their findings to their research and offer
deeper insights into specific subgroups or phenomena of interest by focusing on individuals who
meet predefined criteria (Nurhaeni et al., 2021). A purposive sampling strategy served the
objectives of the present study and research questions that focused on Japanese employees in
Chinese MNCs.
Instrumentation
The study employed a quantitative survey approach. The survey consisted of three parts,
each assessing a specific conceptual framework construct and took 10–15 minutes to complete.
Keeping the online survey as short as possible kept the participants engaged (Robinson &
Leonard, 2018). The study ensured a close link between the survey items and the study topics
and conceptual framework to preserve survey validity (Grant & Osanloo, 2014). The online
survey included 35 items with three open-ended questions and six-point Likert-type questions
that focused on the HCNL role components and KMO elements. With guidance from Vance et
al. (2014), the study adapted and changed the Likert-type HCNL role component questions,

93
originally interview questions, into survey questions. The KMO components of the survey were
partially adapted from Schappe’s (1996) study on assessing knowledge in an employee setting,
Shyns and Van Collani’s (2002) and Chiang and Jang’s (2008) on motivation, and Pintrich
(1991) on organizational factors. All the Likert-type survey components contained response
options of strongly disagree, disagree, somewhat disagree, somewhat agree, agree, and strongly
agree. For the open-ended questions with no survey to adapt from, the study solicited feedback
from peers and colleagues to ensure the clarity of definitions and, thus, avoid confusion.
Demographic questions, such as sex, years of experience in the current company, and
involvement in decision-making processes within the company, were added to uncover trends,
connections, and variations in survey data by participant—these types of questions help
characterize respondent traits and illuminate population diversity, discrepancies, and trends
(Ziegenfuss et al., 2021). Appendix A provides the complete list of survey questions.
Data Collection Procedures
An online market research panel provided the essential data for this dissertation. Pre -
selected individuals who agree to routinely complete surveys form online market research panels
(Chandler et al., 2019). The pre-selected subjects have different backgrounds, and researchers
can look for subjects that match their study requirements. Online panels offer several advantages,
including easier identification of important sample segments, higher response rates, better
response quality, shorter field times, and ethical advantages; they also guarantee immediate
availability and save costs for finding suitable respondents (Göritz, 2004). The company
Marketing Applications provided the needed market research service for this study. The
company offers a platform where users can publish their own surveys and holds the largest
market share among domestic market research companies (Marketing Application, n.d.). After a

94
review of the criteria, Marketing Applications selects pre-recruited sample participants and
distributes the survey to them. In addition, they offer a service to translate the survey using
Brislin’s (1970) technique, in which the instrument is translated from the original language into
another language by a group of bilingual people and then translated back into the original
language by another group of bilingual people. The cost charged by Marketing Applications
depends on the size of the target sample. Participants who met the participation requirements
received the surveys from the company via email, along with a link to the survey. The platform
recorded the participants’ responses and provided the researcher with regular progress reports. In
addition to the raw data from the platform, the participants received updates via a passwordprotected email to protect their data. The study did not collect any personal data. To encourage
participation, the study set the panel to automatically remind participants. The data collection
took a total of two weeks.
Data Analysis
The survey consisted of four main parts. The first part contained demographic questions
to uncover the trends, connections, and variations in the survey data. The second part included
the questions on HCNL role components (Vance et al., 2014). The third part posed the questions
centered around the KMO influences (Clark & Estes, 2008). Parts two and three of the survey
contained Likert-type items on a six-point scale, where 1 = strongly disagree and 6 = strongly
agree. The Likert scale provides a more detailed measurement than scales with fewer response
options; it allows participants to express their opinions more precisely and enables better

95
differentiation between responses (Chen et al., 1995). The final part contained open-ended
response items.
Upon the completion of data collection, the study used a priori coding for all the data
based on the framework adapted from Clark and Estes (2008) and Vance et al. (2014). The
survey used descriptive analysis for the Likert-type part to break down complicated data sets into
clear and comprehensible information. Descriptive analysis also gives a full picture of the data,
showing key trends, variation, and the spread of variables (Wijayangka et al., 2022). By
understanding these relationships, researchers can focus on improving characteristics that have a
positive impact on overall satisfaction (Wong & Hiew, 2005).
The study included open-ended questions to gather qualitative information from the
respondents. These items allowed the respondents to express their ideas, emotions, and
experiences fully, thus promoting a better understanding of their viewpoints (Hsieh & Shannon,
2005). The study used two coding steps to analyze the open-ended questions. First, it observed
the data deductively for themes based on the a priori codes, and second, inductively for any
further sub-themes. The open-ended questions could uncover attitudes and feelings that
respondents may be unable to articulate (Roberts et al., 2014) in the Likert-type parts.
Ethical Considerations
This study followed moral guidelines and adhered to laws of both the United States and
Japan. The researcher put in place a number of safeguards to ensure compliance with all ethical
obligations. First, the Institutional Review Board of University of Southern California reviewed
the study and ensured that the study followed all protocols for the protection of participants.
Second, before they began the survey, the participants received an information sheet explaining
the purpose of the study. The information sheet is crucial, as it gives the participant the

96
opportunity to decline study participation (Robinson & Leonard, 2018). Third, participation was
completely voluntary. Marketing Applications informed participants of their freedom to start the
survey and stop answering the questions of their own will and without any consequences. To
protect their confidentiality, the participants did not submit any personal information. This
approach preserved the anonymity of the participants, which was necessary for honest responses
(Van Selm & Jankowski, 2006). The survey also followed the guidelines of the International
Code Council and the European Society for Opinion and Market Research (2016), the
authoritative organizations for market research studies. The present study took all the necessary
safety measures to ensure the safety of the participants.
Limitations and Delimitations
Limitations and delimitations stem from the components of the study that are beyond the
control of the researcher (Creswell & Creswell, 2018). The present study has a number of
limitations. For one, it focused on participants from Japan only, limiting the transferability of the
survey results to a broader audience. The present results may not be transferable to Western
countries or the rest of Asia. Another limitation arises from the origin of the study sample. With
the design of the current study, there was no way of reaching out to Japanese employees of
Chinese MNCs who did not take part of the online panel (Marketing Applications). As such, the
source of the samples has also limited the generalizability of the Japanese employee population
working for Chinese MNCs. The results of the study are only as good as the responses of the
survey participants.
Survey-related limitations may affect the accuracy and reliability of the information
collected. Online surveys carry a significant risk of fraudulent responses owing to the anonymity
they offer, which can increase the likelihood of fraudulent activity and threaten the integrity and

97
validity of the data (Wang et al., 2023). Additionally, online surveys can contain bias and errors
owing to intentional misrepresentation, misunderstanding by respondents, and misinterpretation
of questions, among others (Griffin et al., 2021). According to Bauhoff (2011), self-report bias is
the tendency among participants to give answers that do not accurately reflect their actual
actions, viewpoints, or experiences, which could lead to unreliable or misleading results. Instead
of being honest, participants might give answers that they consider more comfortable or socially
acceptable, which could lead them to overestimate positive behaviors and underestimate negative
ones (Spitzer & Weber, 2019).
Additionally, the study translated the survey questions from English to Japanese,
following clear instructions to reduce the potential for misinterpretation of terminology and
questions. Cultural bias refers to the inclination to interpret a word or action based on culturally
assigned meanings. Measurement methods may not be equally valid in different cultural
contexts, and instruments developed in one cultural setting may not capture the same constructs
in another, leading to biased measurements or inaccurate and misleading results (Verpalen et al.,
2018). This could pose more risks than mere linguistic translation, as cultural and normative
differences can have a significant impact on the interpretation and responses of participants
(Formea et al., 2014). There is also the potential for misinterpretation of survey questions and
erroneous results when cultural idiosyncrasies and conventions are unconsidered. The present
study requested the market research panel provider Market Application to translate the survey
from English to Japanese, considering their established credentials in conducting surveys on
cross-border issues, to minimize the risk of misinterpretation. To maximize the validity of the
survey, the study conducted a small pilot study before publication.

98
The aims and research strategy of the current study have led to a number of delimitations.
According to Theofanidis and Fountouki (2018), delimitations are the boundaries that the
researcher specifically set for the study. First, because the researcher is based in Japan and
limited the study to Japanese employees, fewer individuals were able to fulfill the eligibility
requirements and complete the questionnaire. A further limit to the study was the focus on
Japanese workers employed by Chinese MNCs. The study included only employees of Chinese
companies; it excluded other MNCs operating in Japan. This separation was essential to ensure
that the study had a clearly defined focus.
Positionality
I grew up in the United States, Europe, and Japan and was educated in these locations. I
have been in the finance industry for 20 years across major global institutions, involved with
various front- and back-office functions and with a wide range of people, from interns to C-level
executives. Vilaverde (2008) described positionality as how disposed one is in relation to the
politics of their sex, race, class, sexual orientation, ethnicity, culture, language, and other social
characteristics. My multicultural upbringing, education, and career have endowed me with
unique knowledge and experience to view the world through multiple lenses. In particular,
having the opportunity to work for a Chinese company as a managing director while interacting
with various business units and different seniorities of employees allows me to be very close to
that setting.
While I have made every attempt to maintain objectivity, I recognize that my biases may
influence how I perceived the data that I gathered, interpreted the data, and viewed and
understood the sample. Creswell and Creswell (2019) emphasized that being objective is a
crucial component of competent inquiry; researchers need to check techniques and findings for

99
bias. Moreover, quantitative research standards of validity and reliability are crucial. The
researcher must elucidate their biases in the study—such introspection produces a transparent
and truthful account that would appeal to the readers. Addressing this bias is important because I
work for a company that is similar to the research samples and have firsthand knowledge of the
field of this study. I have made every effort to minimize experience bias, which arises from
ignoring other options, and similarity bias, which is the tendency to favor things that are similar
to one’s values over things that are distinct from oneself (NeuroLeadership Institute, 2023).
Reliability and Validity
The consistency of a survey determines its reliability; if a participant completes the same
survey twice within a short period of time, the answers should not change dramatically (Salkind
& Frey, 2019). According to Robinson and Leonard (2018), adapting survey questions from
other sources increases survey reliability, given that the adapted questions have already been
tested for validity and reliability. Lance et al. (2006) noted that a Cronbach’s alpha of at least .70
indicates a sufficient level of internal reliability. In the present study, the Cronbach’s alpha for
each modified item exceeded this threshold (.9). To ensure that the definitions were clear and the
items had no ambiguities, I asked colleagues and peers to comment on the items that did not
require any modification.
Validity refers to whether the survey collects the data it claims to collect (Salkind & Frey,
2019). Researchers must consider both internal (i.e., whether the design, implementation, and
analysis of the study provide unbiased answers to the research questions) and external validity
(i.e., whether the study’s conclusions are applicable to other situations). The survey must be
trustworthy to have internal validity. Moreover, peer or professional judgment can help improve
internal validity (Sekaran & Bougie, 2016). To increase internal validity in my study, I designed

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each section to contain multiple-choice questions aligned to the conceptual framework. To
strengthen external validity, the study collected the data through a field survey of Japanese
workers employed by Chinese MNCs in Japan, rather than focusing on a sin gle company.

101
Chapter Four: Results
The study aimed to gather insights into the challenges faced by Chinese MNCs as a result
of international expansion and the roles that HCNLs can play to effectively integrate Japanese
culture in the workplace. The following sections examine the foundational elements of data
analysis by focusing on demographics, descriptive statistics, and inferential statistics. The first
step is an examination of the demographic factors involved in forming an understanding of the
population under study. This provides the necessary context for the data collected. The next
section then discusses the results of the descriptive statistics, with a focus on highlighting
important aspects of the dataset using measures of central tendency and variability aligned with
the respective research questions. Finally, the study discusses the results of the inferential
statistics—methods that enable researchers to draw conclusions and forecasts about a larger
population from sample data. These elements combine to form a comprehensive structure that
facilitates understanding and interpretation of the results.
Participants
Market Applications, an online market research platform, recruited and screened all
participants for the study. The survey recorded a total of 279 responses. Market Application
collected all responses in a week and took another two weeks to translate the responses from
Japanese back into English. At the time of the survey, all participants were Japanese local
employees working at Chinese MNCs. The survey employed screening questions to ensure the
participants met the qualifying criteria (Table A1). Appendix B provides the individual
descriptive and inferential data to all components of the survey.

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Demographic Characteristics of the Participants
The study dichotomized each demographic variable: female/male, younger than 38 years
old/38 years old and older, contractual or temporary/permanent employee, information
technology industry/other industry, large company with over 501 employees/under, one to five
years /over six years of work experience, supervisory middle manager/other position within
company, and no decision-making/with decision-making function. Dividing samples into two
different groups can simplify the process of data analysis and allow easier recognition of patterns
and correlations (MacCallum et al., 2002).
Table 1 provides a summary of the participants’ demographics. Of the 279 participants in
the survey, 37% were female and 63% were male; the dataset was slightly male skewed. The age
distribution was nearly equal, with 48% of the participants under 38 years old and 52% over 38
years old. Almost all (93%) of the participants were full-time employees of their organization;
only 7% were contractual or temporary employees. The substantial skew suggests that the
subsequent results will be more representative of full-time employees. The top three sectors were
the information technology sector (37%), followed by manufacturing (34%), and retail (6.8%).
Moreover, 36% of the participants worked at a company with over 500 employees and 64%
worked for organizations with less than 500 employees, representing a slight skew toward
smaller companies. A majority (81%) of the respondents had over six years of work experience
and 19% had fewer years of experience, skewing the dataset and making the results more
representative of longer-tenured employees. Finally, 45% of participants had some type of
supervisory or management responsibility, and 55% were at an operative level, but 76%
participated in some sort of decision-making process within the company, whereas 24% did not.

103
Table 1
Demographic Characteristics of the Participants
Category Subcategory Abbreviation n %
Sex Female
Male
F
M
102
177
37%
63%
Age Younger than 38 years
38 years and older
<38
38+
135
144
48%
52%
Status Contractual/temporary
Permanent
CT
PERM
20
259
7%
93%
Industry Information technology
Others
IT
OTH
103
176
37%
63%
Size Large
Other
LRG
OTH
101
178
36%
64%
Experience 1–5 years
Over 6 years
1-5
6+
52
227
19%
81%
Position
Other
Supervisory-middle
manager
OTH
SMM
154
125
55%
45%
DecisionMaking
No decision-making
With Decision-making
N
Y
68
211
24%
76%
The study assessed the internal reliability of the measurement scales. Table 2 provides a
summary of the Cronbach’s alpha for the survey measures. All HCNL survey results exceeded
the acceptable cutoff score of .7, indicating internal reliability (Salkind, 2019). The internal
reliability of the modified KMO sections of the survey also showed results higher than the .7
benchmark.

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Table 2
Cronbach’s Alpha Values for Survey Measures
Measure Questions α
Cultural Interpreter 3 .94
Communication Manager 3 .94
Information Resource Broker 3 .94
Talent Manager 3 .94
Internal Change Agent 4 .96
Knowledge 3 .91
Motivation 3 .92
Organizational Support 3 .93
Results for Research Question 1
The first research question sought to investigate the knowledge, motivation, and
organizational assets and challenges of Japanese employees in effectively working in Chinese
MNCs. The descriptive and inferential statistics along with the responses from the open-ended
questions for each variable for RQ1 will be presented in this section. The results revealed
statistically significant differences in six of the eight demographic categories for all knowledge,
motivational, and organizational support items. Collectively, the results suggested that the
individual’s relationship to the organization in terms of status, length of employment, position,
and decision-making responsibilities influenced how that individual’s view of their role.
Additionally, organizational factors, such as the specific industry and overall size, shaped the
ability of individuals to develop capabilities. Sex and age did not show any statistical
significance.

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Knowledge
Knowledge encompasses the specifics of the how, when, what, why, where, who, and
how with respect to achieving performance goals. The section will begin by presenting the
results of the descriptive analysis, followed by an inferential examination of the correlations
between knowledge and other assessed variables. Next, the discussion will delve into the t-tests
that compare knowledge scores across binary demographic categories. Finally, key findings from
the thematic analysis of open-ended responses will be highlighted, offering an overview of the
insights gathered.
Descriptive Statistics
The survey participants reported a positive view on knowledge overall, indicating a
strong recognition of its importance. Japanese employees working at Chinese MNCs perceived
several key assets related to knowledge, including a clear understanding of the company’s goals,
a defined awareness of their roles and responsibilities, and the availability of adequate training
opportunities. The overall knowledge score (M = 4.47, SD = 1.25) showed that employees felt
relatively confident in their knowledge base. These findings imply that local employees at MNCs
have the potential to improve their performance and contribute more to the company’s success
by leveraging their knowledge of the company’s objectives and the specific tasks they are
responsible for. In addition, the emphasis on sufficient training draws attention to the importance
of continuous professional development. Therefore, MNCs should promote continuous education
programs to allow their employees more autonomy. This positive view of knowledge promote s
the development of not only the employee but also a collaborative work environment, leading to
greater organizational efficiency and competitiveness in the international market.
Inferential Statistics

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The correlation findings revealed a strong positive relation between knowledge and
several key factors: motivation, organizational support, and information resource brokering.
Specifically, Pearson’s correlation coefficients indicated a high and significan t correlation
between knowledge and motivation (r(df) = .87, p < .05), suggesting that higher levels of
motivation among employees are associated with greater knowledge acquisition and application.
Similarly, the correlation with organizational support (r(df) = .86, p < .05) indicated that when
employees receive support from their organization, their motivational levels are more likely to
increase. The correlation with information resource brokering (r(df) = .85, p < .05) implied that
effective management of information resources plays a crucial role in facilitating knowledge
development. These findings suggest the link between the success of Chinese MNCs and their
motivational assets, which encompass a clear understanding of goals, defined roles, and adequate
training. Therefore, by emphasizing motivation and providing organizational support for
knowledge development, MNCs can help their global staff overcome challenges and improve
overall performance, leading to enhanced work environments and better organizational
outcomes.
Demographic variables had a strong effect on the knowledge-based scores, with six out of
eight variables being statistically significant across groups. This suggests that Chinese MNCs
should consider the importance of employment status of the employee, industry of the business,
size of the company, amount of experience of the employee, position of the employee within the
organization, and employee involvement in decision-making processes for ensuring high levels
of knowledge in their organizations.
When considering the type of employment, contractual workers scored significantly
lower on the knowledge component scale (t(278) = 4.35, p < .05). The mean score (3.33 ± 1.27,

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compared with full-time workers’ 4.56 ± 1.21) suggested that job security and stability may play
a vital role in knowledge acquisition. Thus, Chinese MNCs should aim for staff retention,
particularly among contractual workers, to enhance overall knowledge levels and foster a more
committed workforce.
Regarding work experience, workers with one to five years of experience and those with
over six years showed a significant difference (t(278) = 4.74, p < .05). The significant difference
between the mean score for the former (3.76 ± 1.20) and the latter (4.64 ± 1.21) could suggest
that experience directly contributes to the accumulation of knowledge. MNCs should consider
investing in mentorship and training programs that help less experienced employees develop
their skills and knowledge base, bridging the gap in knowledge scores.
Finally, the comparison of workers with or without involvement in decision-making
processes revealed a significant difference (t(278) = 5.47, p < .05), which underscores the value
of including employees in key organizational processes. Table B3 shows the mean scores for
employees not involved and those involved in the decision-making (3.78 ± 1.11 and 4.70 ± 1.22,
respectively). By fostering a culture of inclusivity that encourages employees to participate in
decision-making, MNCs can enhance employee engagement, which leads to higher knowledge
levels and better performance outcomes.
Open-ended Questions
The key findings from the open-ended responses revealed that language proficiency
emerged as the most significant driver for enhancing job performance, with 39 out of the 218
participants highlighting its importance. This was further supported by comments such as “Since
I work at a trading company, language skills would be helpful to perform my role” (participant
92). The survey also revealed that improving communication skills (mentioned by 18

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participants) and acquiring additional knowledge (noted by 12 participants) were critical areas
for development. Participant 48 remarked, “If I could obtain an internationally recognized
qualification, it would help promote my company’s presence on the global stage, enable the
company to solve global issues, and significantly boost its growth.” These findings showed the
need for Japanese workers employed by Chinese MNCs to have access to adequate knowledge
resources. These resources should include a comprehensive understanding of their
responsibilities and objectives, as well as the opportunity to receive appropriate training. The
focus on language and communication skills points to the difficulties these employees face in a
global work environment characterized by the need for successful interaction between people
from different cultural backgrounds. In addition, the demand for organizational support and
incentives underscores the need for multinational companies to create organizational structures
that allow for knowledge growth and resource accessibility. In light of these observations,
Chinese MNCs could improve their knowledge management practices and support systems to
better address the specific issues faced by Japanese employees.
Thus, knowledge is an important component in the process of achieving performance
objectives and Japanese workers employed by Chinese MNCs view the importance of knowledge
positively. Understanding the company’s goals, having clearly defined tasks, and having access
to training are all important benefits. Japanese employees working for MNCs scored highly for
knowledge, indicating the need for continuous professional development and a work
environment that encourages collaboration. In addition, demographic f actors had a significant
impact on knowledge scores, with contractual workers scoring lower than full-time employees.
Employees with more experience and responsibilities associated with decision -making scored
higher, highlighting the importance of mentoring and inclusion in the processes used by

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organizations. To achieve optimal performance in the workplace, employees identified language
skills, communication skills, and additional knowledge as essential components. To overcome
these issues, Chinese MNCs should strengthen their knowledge management processes, which
will lead to improved employee performance and a more efficient global workforce.
Motivation
Motivation is the inner, psychological force that gets individuals started, keeps them
going, and allows them to complete tasks. This section will first present the results of the
descriptive analysis, followed by an inferential exploration of the correlations between
motivation and other assessed variables. Next, the section presents a discussion of the results of
the t-tests that compare knowledge scores across binary demographic categories. Finally, the key
findings from the thematic analysis of open-ended responses, highlighted in this section, can
provide a comprehensive overview of the interplay between motivation and various factors.
Descriptive Statistics
The survey participants reported a positive view on motivation, indicating a favorable
environment for local employees working at Chinese MNCs. Japanese employees at these
organizations perceived several motivational assets that significantly influenced th eir work
experience. These included a strong sense of contribution to the organization’s success,
recognition and rewards for their work achievements, and a high level of confidence in their
ability to accomplish daily tasks. The average of the motivation variable had a positive mean (M
= 4.43) and a reasonable standard deviation (SD = 1.26), which suggest that employees generally
felt motivated and engaged in their roles. The positive view toward motivation contributes to
higher job satisfaction and productivity, which in turn help build a more harmonious culture in
the workplace. To maintain and increase employee motivation, companies must continue to

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promote the highlighted components of contribution and appreciation. MNCs should create an
atmosphere where local employees feel valued and empowered by recognizing their
achievements and increasing their sense of self-efficacy. This will contribute to the success of
both employees and employers. Chinese MNCs can better support their employees by becoming
aware of the elements that motivate them, which can improve employee retention and overall
performance in a multicultural environment.
Inferential Statistics
The correlation findings indicated a strong positive relation between motivation and two
key factors: organizational support and information resource brokerage. Pearson’s correlation
coefficients revealed highly significant correlations between motivation and organizational
support (r(df) = .89, p < .05), as well as between motivation and information resource broker
(r(df) = .87, p < .05). Thus, higher levels of organizational support and access to information
resources are associated with increased motivation among employees. Moreover, a supportive
work environment significantly increases the motivation of Japanese employees. These findings
also highlight important aspects that MNCs need to consider to increase employee engagement.
MNCs have the opportunity to foster a more engaged and motivated workforce by focusing on
the availability of resources, recognition of their employees’ achievements, and overall
organizational support. Outcomes include improved organizational performance—motivated
employees are more productive, engaged, and better able to achieve the organization’s goals.
Addressing these motivational variables can help MNCs retain employees and cultivate a healthy
workplace culture that promotes success.
Demographic variables had a strong effect on the motivation-based scores, with six out of
eight variables being statistically significant across groups. This suggests that Chinese MNCs

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should consider the importance of employment status of the employee, industry of the business,
size of the company, amount of experience of the employee, position of the employee within the
organization, and employee involvement in the decision-making process for ensuring high levels
of motivation in their organizations.
With respect to employment type, contractual workers scored significantly lower on the
motivation component scale (t(278) = 3.97, p < .05), recording a higher mean score (3.38 ± .94)
compared with full-time workers (4.51 ± 1.25). Thus, Chinese MNCs should aim to enhance the
motivation and engagement of contract workers, potentially by providing more consistent
support and recognition, similar to what full-time employees receive. In terms of work
experience, workers with one to five and over six years of experience showed a significant
difference (t(278) = 5.31, p < .05) (mean scores of 3.63 ± 1.17 and 4.62 ± 1.21, respectively). As
such, Chinese MNCs should focus on developing targeted programs to support and motivate less
experienced employees, including through mentorship opportunities or tailored training
programs that help them integrate and grow within the organization. In addition, the comparison
of workers with or without involvement in decision-making showed a significant difference
(t(278) = 5.40, p < .05). The mean score for employees not involved in the decision-making was
lower (3.75 ± 1.09) than that of employees involved in the decision-making process (4.65 ±
1.23), which underscores the importance of inclusivity in workplace practices. Employee
participation in decision-making can enhance employees’ sense of ownership and commitment to
their roles, leading to increased motivation. By prioritizing these areas, Chinese MNCs can
cultivate a motivated and engaged workforce, leading to higher productivity and overall
company prosperity.
Open-ended Questions

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The key findings from the analysis of open-ended questions regarding motivators and
demotivators at work revealed valuable insights into the motivational landscape of Japanese
employees in Chinese MNCs. Notably, money emerged as the most frequent motivator; 48 of the
154 participants highlighted its critical role in driving employee engagement. Participant 1
articulated this sentiment, stating, “The compensation that I receive in proportion to the effort I
put in and the opportunity for my work to be recognized are what motivate me.” Other
motivators included a sense of achievement and the desire for improved performance, reflecting
the internal drivers that also play vital roles in employee motivation. Conversely, the responses
regarding demotivators were less pronounced, with 57 participants providing feedback. No
dominant themes emerged, but the participants noted concerns such as decreases in wages, office
tasks, and interpersonal relationships. Participant 168 expressed frustration with unclear
expectations from superiors, stating, “I feel demotivated when unnecessary expectations from
my superiors are not communicated to me initially but are brought up after [a task].” These
findings highlight both the motivational assets, such as monetary rewards and pe rsonal
accomplishments, and the challenges related to communication and expectation management that
Japanese employees face in MNCs. As such, Chinese MNCs should meet the motivational needs
of their workforce in Japan to improve employee engagement and productivity. These companies
can harness the motivational skills of their employees by offering market-competitive pay and
creating an atmosphere of recognition for achievements. In addition, improvements in
communication methods and the setting of clear expectations can help reduce the difficulties
identified, creating a workplace that is more encouraging and motivating. Chinese MNCs can
foster a more engaged and productive workforce by focusing on the motivational and

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organizational resources at their disposal. Addressing these issues can help Chinese MNCs create
an inspiring workplace that encourages local employee engagement and productivity.
In summary, the findings indicated a positive perception of motivation, with monetary
compensation identified as the primary motivator, alongside a sense of achievement and
performance improvement. However, contractual workers demonstrated significantly lower
motivation levels compared with full-time employees, suggesting a need for enhanced support
and recognition for these individuals. Additionally, demographic factors, such as years of
experience and involvement in decision-making, significantly impacted motivation. MNCs must
provide targeted support for less experienced employees and foster inclusivity in workplace
practices. Furthermore, while monetary rewards were prominent motivators, challenges related
to communication and expectation management emerged as obstacles to employee engagement.
To cultivate a more motivated and productive workforce, Chinese MNCs should prioritize
competitive compensation, effective communication, and recognition of achievements.
Organizational Support
Organizational support is the level of support the institution provides to overcome
obstacles, such as inadequate resources, flawed processes, and procedures that hinder or delay
work, as well as inadequate resource levels. This section will firstly presen t the results of the
descriptive analysis, followed by an inferential examination of the correlations between
organizational support and other evaluated variables. Subsequently, the section discusses
findings from t-tests comparing organizational support scores across various binary demographic
categories. Finally, the report will highlight key insights derived from the thematic analysis of
the open-ended responses.
Descriptive Statistics

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The survey results underscored the crucial role of organizational support in shaping the
experiences of Japanese employees at Chinese MNCs. These employees reported feeling wellsupported by expatriate managers, who provide clarity regarding expectations and help align
individual efforts with broader organizational objectives. MNCs’ commitment to professional
development and career growth not only boosts job satisfaction but also motivates employees to
strive for excellence in their roles. The presence of effective and open communication channels
between Japanese employees and expatriate managers fosters a collaborative work environment,
promoting better integration and teamwork. The study found a positive mean value (M = 4.39)
and reasonable standard deviation (SD = 1.31) for the construct of organizational support. Thus,
the employees surveyed considered organizational support to be a component of significant
importance. Based on this view, organizations have the opportunity to implement support
systems to improve employee engagement and increase productivity. Chinese MNCs can not
only improve employee morale but also boost overall operational performance and global
competitiveness by adding organizational support programs to their priority list and improvin g
these projects. Investing in organizational support is not only a matter of employee well-being
but also a strategic approach that can lead to success for all stakeholders.
Inferential Statistics
The correlation findings revealed the significant association of organizational support
with several key variables. The Pearson’s correlation coefficients showed that organizational
support was highly correlated with internal change agents (r(df) = .87, p < .05), information
resource brokers (r(df) = .87, p < .05), and talent management (r(df) = .85, p < .05). These strong
correlations suggest that enhancing these aspects can significantly improve organizational
support scores among employees. Given the close link between organizational support and

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internal change agents, MNCs should develop individuals within the company who are capable
of taking a leadership role in change. Similarly, the high association with information resource
brokers implies that employees must have access to knowledge and resources to perform well.
The favorable correlation with talent management underscores the need to invest in people
development and retention methods. A strategic focus on organizational support not only helps
employees but also improves the company’s overall efficiency.
Demographic variables had a strong effect on the organizational support-based scores,
with six out of eight variables being statistically significant across groups. Chinese MNCs should
consider the importance of the employment status of the employee, industry of the business, size
of the company, amount of experience of the employee, position of the employee within the
organization, and employee involvement in the decision-making process for ensuring high levels
of organizational support.
Regarding the type of employment, contractual workers scored significantly lower on the
organizational support component scale (t = 4.64, p < .05), reporting a lower mean score (3.13 ±
1.27) compared with full-time workers (4.49 ± 1.27). This disparity suggests that Chinese MNCs
should aim to maintain a stable workforce by converting contractual positions to full-time roles,
as this could enhance employees’ sense of security and access to support resources, increasing
their knowledge levels and integration within the organization. In addition, employees with
shorter and longer work experience showed a significant difference in organizational support
scores (t(278) = 4.79, p < .05): a lower mean score (3.64 ± 1.26) in those with one to five years’
experience compared with employees with more than six years of experience (4.57 ± 1.26).
Thus, newer employees may require additional support and mentoring to fully engage with the
organizational culture and resources. MNCs could benefit from implementing structured

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onboarding and mentoring programs tailored to the needs of less experienced employees, thereby
facilitating professional development and improving organizational support perception.
Furthermore, the comparison of workers with or without involvement in decision-making
showed a significant difference (t(278) = 6.76, p < .05). The mean score of employees not
involved in decision-making was lower (3.53 ± 1.11) than that of employees involved in
decision-making (4.67 ± 1.24). An implication is that inclusion in decision-making can enhance
employees’ sense of belonging and support within the organization. To create a more positive
work environment, Chinese MNCs should consider involving more employees in decision -
making processes, thereby fostering a culture of inclusion and empowerment.
Open-ended Questions
Of the 171 participants, 19 identified the improvement of communication skills as a
critical driver for enhancing organizational support. Comments from participants highlighted the
importance of thoroughly informing employees about objectives, authorities, and rules, with one
respondent noting that “implementing fair rewards and penalties would lead to improvements”
(participant 175). Another participant emphasized that “proper communication, reporting, and
consultation within the organization can help us be attentive to even minor changes” (participant
134). These insights point to a significant challenge in the current organizational support
framework within Chinese MNCs, particularly for Japanese employees.
The findings underscore the need for Chinese MNCs to prioritize effective
communication tactics. By cultivating a culture that encourages free and open knowledge
sharing, MNCs can enhance employee morale, engagement, and productivity. By bridging the
gap between management and employees, this emphasis on communication can serve as an
important tool to support the organization. This finding is especially true for employees who feel

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disconnected or unsupported in their positions. In addition, overcoming these communication
issues could make Japanese workers feel more integrated and valued within the organization,
which can help them feel more empowered. Improved communication methods not only help
explain goals and expectations but also foster a work atmosphere that is conducive to
collaboration. These types of activities can lead to a more engaged and productive workforce,
which can enable Chinese MNCs to more effectively meet the challenges of the global economy.
The findings highlight both the organizational support opportunities that MNCs can leverage and
the barriers that they need to address to create a work environment that is more conducive and
engaging for Japanese employees working for Chinese MNCs.
In summary, the results of the study shed light on the essential role of organizational
support in the experiences of Japanese workers employed by Chinese MNCs. Strong
communication and support from overseas managers have a positive impact on job satisfaction
and motivation. Considering the strong relations between organizational support and critical
factors, such as internal change agents and talent management, improving these areas could lead
to an increase in support scores. In addition, demographic characteristics, such as job level and
work experience, have a significant impact on how people perceive an organization’s support.
Particularly, contractual workers reported lower support scores, suggesting that secure
employment is necessary to improve integration and knowledge levels. These findings indicate
that Chinese MNCs should prioritize effective communication and individualized support
measures to create an engaging and productive work environment for Japanese employees.
Summary: RQ1
RQ1 analyzed the knowledge, motivation, and organizational assets and challenges of
Japanese employees in Chinese MNCs. The results revealed significant differences in these

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areas, as well as the key factors influencing employees’ perceptions of their roles. Knowledge -
related values focused on understanding the organization’s goals, roles, and responsibilities, but
challenges arose when employees felt uncertain about alignment. Motivational values included
contributing to the organization’s success, receiving recognition, and having confidence in their
abilities. The related challenges were insufficient recognition and varying motivation levels.
Managerial support, corporate commitment to professional development, and effective
communication channels shaped organizational support. The study identified language skills,
monetary rewards, and enhanced communication practices as crucial for maximizing Japanese
employees’ experiences in Chinese MNCs. Addressing these challenges can enhance employee
engagement and effectiveness, fostering a more productive and harmonious work environment.
Results for Research Question 2
The second research question sought to elucidate the HCNL role components Japanese
employees report practicing in their work in Chinese MNCs. HCNL components provided a
model for improving host country operations’ performance and contributed to enhancing
knowledge transfer and organizational performance. Regarding the descriptive and inferential
statistics for each variable for RQ2, the results indicated statistically significant differences in six
of the eight demographic categories. Similar to the knowledge, motivation, and organizational
support components for RQ1, the results suggested that an individual’s relationship to the
organization in terms of employment status, length of employment, industry sector, company
size, position, and decision-making authority influenced employees’ perceptions of their role and
ability to develop skills. Sex and age did not show any statistical significance. The section
highlights the most statistically significant differences below, along with correlation data and ttest results.

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Cultural Interpreter
This role facilitates workshops or training sessions for expatriates, helping them
understand cultural customs, communication styles, and business etiquette in the host country
and acts as a mediator in cross-cultural conflicts that may arise within the organization. This
section will present the results of the descriptive analysis, followed by an inferential examination
of the correlations between the Cultural Interpreter role and other assessed variables.
Subsequently, the findings from the t-tests comparing Cultural Interpreter scores across various
binary demographic categories will be discussed.
Descriptive Statistics
The survey revealed that Japanese employees working at Chinese MNCs played a
significant and proactive role as cultural interpreters. By clarifying ambiguous communications
between expatriates and local staff, guiding expatriates in understanding local cultural norms and
practices, and effectively mediating conflicts, these employees facilitated smoother interactions
and enhanced collaboration within the workplace. The average score for the cultural interpreter
scale (mean of 4.37 and standard deviation of 1.38) indicated that Japanese employees in these
settings somewhat actively embraced this role. From the perspective of Japanese employees, this
dynamic brings a number of implications. First, the presence of cultural interpreters can improve
communication and understanding, reducing the likelihood of misunderstandings that could be
detrimental to both production and morale. Second, when Japanese workers are involved in
bridging cultural differences, local employees feel more supported and valued, which contributes
to the development of a cohesive and inclusive workplace. By recognizing the cultural
viewpoints and contributions of employees, this function not only helps improve the integration
of expatriates in the corporate culture but also empowers local employees. In the environment of

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Chinese MNCs, the active participation of Japanese workers in the role of cultural interpreter has
the potential to create a better working environment, thereby promoting organizational
efficiency.
Inferential Statistics
The Cultural Interpreter component showed an especially significant and strong positive
correlation with Communication Manager and Information Resource Broker, suggesting that
these are important aspects to consider in improving this component’s scores. The Pearson’s
correlation coefficients revealed a strong positive correlation between Cultural Interpreter and
Communication Manager (r(df) = .82, p < .05), as well as between Cultural Interpreter and
Information Resource Broker (r(df) = .81, p < .05). Thus, the efficiency of cultural interpreters
enhances the efficiency of communication managers and information brokers within the
company. An implication is that improving the cultural interpreter component could have a direct
and positive impact on communication management and facilitate the flow of information
between expatriates and local staff. Actively assuming the position of cultural interpreter not
only promotes communication and understanding between different employees but also
significantly helps minimize disputes that may arise owing to cultural differences. Involvement
in this capacity also contributes to the general improvement of the organization’s efficiency.
Demographic variables had a strong effect on the Cultural Interpreter scores, with six of
the eight variables being statistically significant across groups. Chinese MNCs should consider
the importance of the industry and size of the business, as well as employees’ employment
status, work experience, position within the organization, and involvement in the decision -
making process for ensuring high levels of motivation in their organizations.

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Contractual workers scored significantly lower on the knowledge component scale
(t(278) = 2.93, p < .05) (mean score of 3.52 ± 0.94) compared with full-time workers (mean
score of 4.40 ± 1.37). This suggests that the type of employment has a direct impact on the
knowledge and effectiveness of cultural interpreters. Therefore, Chinese MNCs should consider
strategies to maintain staff, which can lead to enhanced knowledge levels and better performance
in cultural interpretation roles. Work experience also showed a significant difference (t(278) =
3.11, p < .05). Employees with up to five years of experience had a lower mean score (3.85 ±
1.24) compared with employees with more than six years of experience (4.49 ± 1.38). This
finding highlights the importance of providing ongoing training and development opportunities,
particularly for less experienced employees, to help them acquire the necessary knowledge and
skills to act as effective cultural interpreters. In addition, the comparison of workers with or
without involvement in decision-making revealed a significant difference (t(278) = 4.48, p
< .05). Employees not involved in the decision-making had a lower mean score (3.75 ± 1.17)
compared with employees involved in decision-making (4.65 ± 1.38). As such, employees who
participate in decision-making have a better grasp of cultural nuances; therefore, companies
should encourage greater decision-making participation among their employees. These strategies
can contribute to a more unified working atmosphere and encourage the development of
knowledge and skills required for successful cultural interpretation within the organization.
In sum, the survey results indicated that Japanese employees in Chinese MNCs actively
embrace the Cultural Interpreter role, which enhances workplace collaboration and reduces
misunderstandings. Furthermore, the study found strong positive correlations between cultural
interpreters and communication managers and information resource brokers, suggesting that
improving the effectiveness of cultural interpreters can enhance overall communication

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efficiency within the organization. Demographic factors significantly influenced Cultural
Interpreter scores, with contractual workers scoring lower than full-time employees and less
experienced staff faring worse than their more seasoned counterparts. Consequently, Chinese
MNCs should implement strategies that retain employees, provide ongoing training, and
encourage involvement in decision-making to enhance the cultural interpreter capacity and foster
a cohesive work environment.
Communication Manager
A communication manager is responsible for translating important organizational
documents or messages into the local language and for organizing regular meetings or forums to
foster open communication and understanding between expatriates and HCNs. This section will
first outline the results of the descriptive analysis, followed by an inferential exploration of the
correlations between the Communication Manager component and other assessed variables.
Finally, the section presents the results of the t-tests comparing Communication Manager scores
across various binary demographic categories.
Descriptive Statistics
The survey results revealed that Japanese employees exhibited an inclination to assume
the role of Communication Managers within Chinese MNCs. This tendency suggests that local
employees are not only aware of the importance of effective communication in a multicultural
workplace but also willing to take on the responsibility of bridging cultural and linguistic
divides. By translating communication accurately between expatriates and local staff, moderating
discussions to ensure clarity, and facilitating smooth information flow, these employees play a
vital role in enhancing workplace dynamics. The Communication Manager scale (mean score of
4.29 and standard deviation of 1.40) indicated a significant consensus among Japanese

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employees regarding their level of active engagement in this role. Considering that local
employees contribute significantly to the development of an inclusive atmosphere that promotes
mutual understanding and collaboration, then they are more likely to fe el a sense of
empowerment and appreciation. Furthermore, this active participation has the potential to
improve job satisfaction and productivity, which can benefit the overall organizational culture
and functioning of the Chinese MNC locally.
Inferential Statistics
The correlation findings indicated a particularly strong and positive relation between the
role of Communication Manager and three key components: Internal Change Agent, Information
Resource Broker, and Talent Manager. Pearson’s correlation coefficients revealed significant
correlations between Communication Manager and Internal Change Agent (r(df) = .90, p < .05),
Information Resource Broker (r(df) = .90, p < .05), and Talent Manager (r(df) = .89, p < .05).
These results demonstrate a direct relation between the efficiency of communication managers
and their role as internal change agents. Thus, communication managers play a crucial role in the
implementation and management of organizational change. Similarly, their role as information
resource brokers underscores their ability to facilitate access to crucial information, thereby
enhancing communication within the company. The close association with talent managers also
suggests that these individuals contribute greatly to the process of cultivating and mana ging
talent, which is essential to an organization’s success. In the case of Japanese workers employed
by Chinese MNCs, these findings highlight their active engagement in improving
communication practices, which in turn strengthens cross-cultural understanding and
collaboration. Given the links between the communication manager role and the above
components, these components play an important role in developing a constructive

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organizational culture and achieving organizational success. Consequently, investing in the
creation and support of these positions could lead to improved communication strategies and
better overall performance within Chinese MNCs.
Demographic variables had a strong effect on the Communication Manager scores, with
six of the eight variables being statistically significant across groups. Chinese MNCs should
consider the importance of the industry and size of the business, as well as employees’
employment status, work experience, position within the organization, and involvement in the
decision-making process for ensuring high levels of Communication Managers in their
organizations.
The implications of the t-tests revealed critical insights regarding the effectiveness of
Japanese employees functioning as Communication Managers within Chinese MNCs.
Contractual workers scored significantly lower on the communication manager scale (t(278) =
3.34, p < .05) (mean score of 3.30 ± .96), compared with full-time workers (mean score of 4.36 ±
1.40). Organizations may thus benefit from retaining employees in permanent roles. By doing so,
Chinese MNCs can foster a more stable workforce, which can enhance communication
management capabilities over time. Based on tenure, the results showed a significant difference
(t(278) = 4.3, p < .05) in the mean scores of shorter-tenure (1–5 years of experience) employees
(3.56 ± 1.23) and their longer-tenure (6 or more years) counterparts (4.45 ± 1.38). This could
imply the importance of not only retaining staff but also investing in their continuous
development to build their communication skills and overall competence. Moreover, the
comparison of workers with or without involvement in decision-making revealed a significant
difference (t(278) = 6.76, p < 0.05). The mean score for employees not involved in decisionmaking (3.36 ± 1.16), compared with that of employees involved in decision-making (4.58 ±

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1.34), suggested that organizations should promote inclusive decision-making practices,
empowering employees to participate actively. Such involvement can enhance their skills and
foster a sense of ownership and responsibility toward communication processes.
Two other subcategories showed scores significantly lower on the communication scale.
Within industries (t(278) = -5.08, p < .05), those who worked in IT had a higher mean score
(4.82 ± 1.25) compared with those in other industries (3.98 ± 1.39). This could suggest that
MNCs should consider tailoring training and support programs to align with the specific
dynamics of different sectors, thereby equipping employees with relevant skills and knowledge.
The same case applied to position within the organization (t(278) = 4.57, p < 0.05): those with
supervisory roles had a higher mean score (4.70 ± 1.30) compared with others (3.95 ± 1.39). This
finding points to the need for organizations to invest in leadership development and mentorship
programs that can prepare employees for supervisory responsibilities. Organizations can
therefore enhance communication effectiveness by implementing training programs, promoting
inclusive decision-making methods, and considering industry-specific dynamics to support
employees in their roles as communication managers.
In short, the survey results showed that Japanese workers are interested in taking the
position of communications manager in Chinese MNCs. The high mean scores reflected their
commitment to effective communication and collaboration. The results of the correlation
analysis showed significant correlations between the communication manager role and key
components, such as internal change agents and talent managers. This suggests that these roles
are essential for implementing organizational change and improving internal communication. In
addition, demographic characteristics had a significant impact on the evaluation of the
communication manager, suggesting that Chinese MNCs should emphasize employment

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position, industry, experience, and commitment in decision-making to maximize the
effectiveness of their communication. The lower scores of contractual workers in the t-test
results underlines the importance of companies retaining permanent employees and investing in
their professional development. In addition, promoting inclusive decision-making and tailoring
training programs to specific sectors are two other ways to f urther strengthen the effectiveness of
communication managers, which will contribute to the success of the company.
Information Resource Broker
This role creates platforms or systems for sharing best practices, knowledge, and
expertise between expatriates and local employees and also facilitates mentorship or buddy
programs to encourage the exchange of skills and experience. This section will first outline the
results of the descriptive analysis, followed by an inferential examination of the correlations
between the Informational Resource Broker and other assessed variables. Subsequently, the
section presents findings of the t-tests will, comparing the Informational Resource Broker scores
across binary demographic categories.
Descriptive Statistics
The survey results showed the Japanese employees’ tendency to act as information
resource brokers. They agreed, to a certain degree, that playing this role at Chinese MNCs was
important. They also recognized the role’s significance in effectively bridging external market
information relevant to the local operations, serving as a reliable source of organizational
memory and retaining critical operational knowledge, and providing crucial informal knowledge
about the organization to new staff and expatriates. The overall Information Resource Broker
scale (mean of 4.31 and standard deviation of 1.36) indicated the view of local employees of this
role as valuable and with the potential to enhance their own professional development and the

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overall effectiveness of the organization. The active participation of Japanese workers in this role
can significantly benefit Chinese MNCs. When Japanese employees take on this role, they can
successfully combine information about the external market with information about local
operations. This measure will lead to an overall improvement in the organization’s knowledge
base. The recognized importance of the Information Resource Broker role is an indication of
employees’ commitment to sharing important operational information and informal insights with
new hires and expatriates. Through this collaborative interaction, they can foster a cohesive work
environment and improve the integration of diverse experiences and practices, thus enhancing
organizational performance.
Inferential Statistics
Information resource broker showed an especially significant and strong positive
correlation with talent managers, internal change agents, and organizational support, suggesting
that these are important aspects to consider in improving this component’s sco res. Pearson’s
correlation coefficients showed strong statistically significant and positive correlations with
talent managers (r(df) = .93, p < .05), internal change agents (r(df) = .90, p < .05), and
organizational support (r(df) = .87, p < .05). As the effectiveness of information resource brokers
increases, the effectiveness of talent management, internal change initiatives, and level of
organizational support would also show a corresponding increase. The findings indicate that the
active participation of Japanese workers in the role of information resource brokers can
significantly benefit all workers employed by Chinese MNCs. When Japanese employees take on
this role, they can successfully combine information about the external market with information
about local operations. This will lead to an overall improvement in the organization’s knowledge
base. The fact that they recognize the importance of the Information Resource Broker role is an

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indication of their commitment to sharing important operational information and informal
insights with new hires and expatriates. They can foster a more cohesive work environment and
improve the integration of diverse experiences and practices by utilizing this collaborative
interaction.
Demographic variables had a strong effect on the Information Resource Broker scores,
with six out of eight variables being statistically significant across groups. Chinese MNCs should
consider the importance of the industry and size of the business, as well as employees’
employment status, work experience, position within the organization, and involvement in the
decision-making process for ensuring high levels of this component scores in their organizations.
The t-test results revealed important insights for Japanese employees working at Chinese
MNCs. Contractual workers scored significantly lower on the information resource broker
component scale compared with full-time employees (t(278) = 4.22, p < .05) (mean score of 3.12
± 1.26 compared with the mean score of 4.41 ± 1.32 of full-time workers). Thus, Chinese MNCs
should aim to maintain a stable workforce to enhance knowledge levels within the organization .
Regarding work experience, employees with a shorter tenure (1–5 years) and longer tenure (6
years or longer) recorded mean scores (3.44 ± 1.16 and 4.51 ± 1.32, respectively) that
demonstrated a significant difference (t(278) = 5.4, p < .05). Organizations should focus on
employee retention strategies to build a more knowledgeable and effective workforce.
The comparison of workers with or without involvement in decision-making showed a
significant difference (t(278) = 6.47, p < .05); employees not involved in decision-making had a
lower mean score (3.45 ± 1.15) compared with employees involved in decision-making (4.59 ±
1.30). Thus, companies should cultivate an inclusive decision-making culture. Engaging
employees in these processes can empower them and improve their ability to share information

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and collaborate effectively. Lastly, one other subcategory showed significantly lower scores on
the communication scale: industry of the organization (t(278) = -5.69, p < .05). The mean score
for those who worked in IT was higher (4.89 ± 1.16) compared with other industries (3.98 ±
1.35). The industry-specific scores suggest that employees in certain sectors, such as IT, may
have different dynamics in knowledge sharing. Thus, organizations should tailor their support
and training programs to fit the unique needs of various departments. The accumulation of these
efforts can lead to improved knowledge sharing and collaboration across the organization.
Therefore, Japanese workers are more willing to accept the job of Information Resource
Broker. They understand the importance of this role in linking information about the external
market with information about the local company’s operations, which leads to an increase in the
company’s efficiency. The study found strong positive correlations between the effectiveness of
information resource brokers and talent managers, internal change agents, and organizational
support. This suggests that these components are essential to improving overall performance. In
addition, demographic characteristics had a significant impact on the evaluation of information
brokers. Thus, Chinese MNCs need to consider employment status, industry, tenure, and
commitment in decision-making to enhance employee motivation and knowledge sharing. The ttest results showed that people who were involved in decision-making, full-time employees, and
had been with the company for a longer period of time scored higher. This suggests that
companies should prioritize employee engagement strategies, inclusive cultures, and tailored
support for different industries to improve collaboration and knowledge transfer.
Talent Manager
This role identifies high-potential local employees and provides them with opportunities
for training and professional development. The talent manager also creates cross-functional

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teams that include both expatriates and local employees to promote knowledge transfer and skill
enhancement. This section discusses the results of the descriptive analysis, followed by an
inferential examination of the correlations between the Talent Manager and other assessed
variables. Finally, the section presents the findings from t-tests comparing Talent Manager scores
based on binary demographic categories.
Descriptive Statistics
The survey results highlighted the significant role of talent managers as perceived by
Japanese employees working within Chinese MNCs (mean score of 4.26, standard deviation of
1.42). Thus, Japanese employees tended to regard talent managers as integral to their
professional environment, recognizing their efforts in identifying and recommending local
talents for leadership and critical roles. Moreover, talent managers play an essential role in
providing coaching and mentoring to enhance the skills and knowledge of local staff, actively
engaging in the career development of employees by offering guidance and opportunities.
Japanese employees rate the impact of talent management on their work experience positively.
Thus, effective talent management practices contribute to a supportive workplace culture that
encourages growth and development, which leads to higher job satisfaction and retention of local
employees. By supporting the professional advancement of local employees, Talent Managers
not only enhance the talent of the individual but also increase the overall competency and
competitiveness of the organization.
Inferential Statistics
Talent manager showed an especially significant and strong positive correlation with
internal change agent and organizational support (Pearson’s correlation coefficients of r = .93, p
< .05 and r = .85, p < 0.05, respectively). These results suggest that as the effectiveness of the

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talent manager increases, so does the perceived support from the organization and role of internal
change agents. From a practical perspective, these relations suggest a direct link between the
performance of talent managers in identifying and cultivating local potential and the larger
organizational context. Talent managers not only facilitate the individual growth of their
employees but are also a key factor in promoting organizational change and adaptability, as
demonstrated by the close relationship between them and internal change agents. Similarly, the
close link with organizational support indicates that employees who feel supported by their
organization are more willing to participate in talent management-led activities and make good
contributions to the workplace culture. The results suggest that Japanese workers employed by
Chinese MNCs are aware of the importance of their roles as Talent Managers and actively
contribute to developing and mentoring local talent. This not only helps their colleagues improve
their skills and knowledge but also assists cultivate a culture within the company that encourages
employees to collaborate and support others. The results highlight the need for effective human
resource management strategies that invest in the development of local Japanese employees—
engaging and supporting these employees can greatly impact the company’s ability to adapt to
the host country landscape in the long term.
Demographic variables had a strong effect on the Talent Manager scores, with six of the
eight variables being statistically significant across groups. Chinese MNCs should consider the
importance of the industry and size of the business, as well as employee s’ employment status,
work experience, position within the organization, and involvement in the decision -making
process for ensuring high Talent Manager levels in their organizations.
The implications of the t-test results regarding Japanese employees working at Chinese
MNCs are significant for both talent management practices and organizational strategy.

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Contractual workers scored significantly lower (mean score, 2.95 ± 1.07) than full-time
employees (mean score, 4.36 ± 1.39) on the Talent Manager component scale (t(278) = 4.43, p
< .05). Thus, Chinese MNCs should aim to maintain a stable workforce to enhance the
knowledge levels and capabilities of their staff. By offering more permanent positions and
reducing reliance on contractual workers, organizations can cultivate a more experienced and
engaged employee base that can better contribute to talent management initiatives. In addition,
work experience also showed a significant difference (t(278) = 5.2, p < .05) between employees
with one to five years of experience (mean score of 3.38 ± 1.17) and those with more than six
years of experience (4.46 ± 1.39). Investing in training and development programs for lessexperienced employees would allow them to build the skills and confidence necessary for
effective talent management. By fostering a culture of continuous learning and development,
organizations can enhance the overall competency of their workforce.
Regarding decision-making authority, employees involved and not involved in decisionmaking showed a significant difference in mean scores (t(278) = 8.04, p < .05), with the former
scoring higher (4.61 ± 1.30) than the latter (3.18 ± 1.16). This difference underscores the
necessity for inclusive practices within organizations. By actively involving employees,
organizations can harness diverse perspectives and insights that contribute to more effective
talent identification and development. Finally, the other subcategory that showed scores
significantly lower on the talent manager scale was the position of the employee within the
organization (t(278) = 5.47, p < .05). Those with supervisory roles (mean score of 4.75 ± 1.19)
could better perform talent management responsibilities compared with other employees (mean
score of 3.86 ± 1.47). Thus, those in supervisory roles are better positioned to. Chinese MNCs
should consider implementing mentorship programs or leadership training for non-supervisory

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employees, helping them develop the skills needed to take on more significant roles in talent
management. Strengthening the Talent Manager score will allow Chinese MNCs to create a
strong pipeline of local talent, an essential factor in the organization’s success in the host
country.
In short, Japanese workers employed by MNCs view Talent Managers as indispensable to
their career development and recognize their contribution to coaching and mentoring. The
findings indicate a significant positive relation between talent managers, internal change agents,
and organizational support. An implication is that successful talent management techniques
foster a supportive workplace culture and enhance employee engagement.
As with the other components, demographic characteristics had a significant impact on
talent manager evaluations, highlighting the need to consider employment position, industry,
company size, experience, and engagement when making decisions. The t-test results showed
contractual workers having lower scores compared with full-time employees. This finding
suggests that Chinese MNCs should strive to retain a consistent workforce to improve their
knowledge and skills. In addition, the results highlight the need to invest in training for lowerskilled workers and support inclusive practices in decision-making processes within the
organization. Finally, the effectiveness of Talent Managers tended to be more evident in
supervisory roles. MNCs should thus provide mentorship programs for non-supervisory
employees to strengthen their talent management skills.
Internal Change Agent
This role leads initiatives to promote cultural integration, such as organizing cultural
awareness events or implementing diversity and inclusion programs, and facilitates
conversations and workshops aimed at aligning the organization’s values and goals with the local

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culture. This section will share the results of the descriptive analysis, followed by an inferential
examination of the correlations between Internal Change Agents and other assessed variables.
Additionally, the findings from t-tests comparing Internal Change Agent scores based on binary
demographic categories will be discussed.
Descriptive Statistics
Japanese employees within Chinese MNCs perceived the role of Internal Change Agents
as highly relevant within the HCNL framework (mean score of 4.29 and standard deviation of
1.38). The findings suggest a strong consensus among respondents regarding the significance of
this factor in facilitating organizational change. Japanese employees not only recognize the
importance of their role as Internal Change Agents but also actively participate in the joint
planning of organizational change with employees from other countries. This partnership
enhances the successful implementation of change projects by ensuring that they are in line with
the prevailing traditions and norms in the local community. The environment for cultural
integration and professional growth is favorable for local staff employed by MNCs. The
involvement of Internal Change Agents enables the cultivation of adaptation and commitment to
organizational change among the workforce, which leads to the development of a sense of
ownership among employees. This supports the change process, which in turn enables local
employees to make a meaningful contribution to the company’s growth. The overall effect of this
dynamic is to empower local employees by helping them manage the complexity of working in a
global context. This dynamic also promotes employee engagement and satisfaction in the work
environment.
Inferential Statistics

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The correlation findings indicated an especially significant and strong positive correlation
between this role and organizational support. Specifically, the Pearson’s correlation coefficient
of r(df) = .87, with a significance level of p < .05, signified a very high degree of correlation—as
organizational support increases, the effectiveness and engagement of Internal Change Agents
also tend to increase. A practical implication of this substantive relation is that Japanese
employees working for Chinese MNCs are more likely to actively participate in their roles as
Internal Change Agents if they perceive a high level of organizational support. This involvement
includes activities such as co-planning change initiatives, fostering employee engagement, and
building cultural awareness, all of which are essential components for the effective
implementation of organizational change. The data showed that organizational support is a
critical component to increasing the effectiveness of Internal Change Agents. Given this, Chinese
MNCs have the potential to significantly boost the contribution of Japanese employees by
enhancing their organizational support. This association underscores the importance of
cultivating an atmosphere that values and supports the work of internal change agents to promote
effective change processes within the organization.
Demographic variables had a strong effect on the Internal Change Agent scores, with six
of the eight variables being statistically significant across groups. Chinese MNCs should
consider the importance of the industry and size of the business, as well as employees’
employment status, work experience, position within the organization, and involvement in the
decision-making process for ensuring high Internal Change Agent levels in their organizations.
The t-test results regarding Japanese employees working at Chinese MNCs revealed
several critical insights that organizations should consider to enhance employees’ effectiveness
as Internal Change Agents. For one, contractual workers scored significantly lower (mean score

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of 3.14 ± 1.10) on the Internal Change Agent component scale (t(278) = 3.96, p < .05) compared
with full-time workers (mean score of 4.38 ± 1.36). Thus, contractual workers may feel less
integrated and supported within the organization. Chinese MNCs should aim to improve
retention strategies for contract workers by creating pathways for their development and
inclusion in change processes. By fostering a supportive environment for all employees,
organizations can enhance knowledge levels and engagement, which benefit the overall
effectiveness of change initiatives.
Based on tenure, the results showed a significant difference (t(278) = 5.0, p < .05),
between employees with one to five years of experience (mean score of 3.46 ± 1.20) and those
with more than six years of experience (mean score of 4.48 ± 1.35). This finding indicates that
organizations should prioritize the retention of experienced employees, who bring valuable
insights and expertise to the change process. Additionally, implementing mentorship programs
can facilitate knowledge transfer from seasoned employees to newer staff, bolstering the overall
capacity for leading change. Inclusion in decision-making also showed a significant difference
(t(278) = 8.31, p < .05): the mean score of employees not involved in decision-making was lower
(3.20 ± 1.23) compared with that of employees involved in decision-making (4.64 ± 1.24). This
finding suggests that Chinese MNCs should actively engage employees in decision -making
processes related to organizational change. By promoting a culture of participation and
ownership, organizations can enhance employee commitment, leading to more effective
implementation of change initiatives. Internal Change Agents can contribute to successful
organizational change and improve the overall effectiveness of local employees working at
Chinese MNCs.

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In sum, the survey results indicated that Japanese employees in Chinese MNCs view the
role of Internal Change Agents as highly relevant. The employees demonstrated active
participation in change initiatives that respect local customs and enhance profession al growth.
Correlation findings revealed a strong positive relation between organizational support and the
effectiveness of Internal Change Agents, suggesting that increased support leads to greater
engagement and participation in change processes. Additionally, demographic variables
significantly impacted Internal Change Agent scores, highlighting the need for organizations to
consider factors such as employment type, tenure, and involvement in decision -making.
Specifically, contractual workers and inexperienced employees may require additional support
and inclusion in decision-making to enhance their effectiveness. By fostering a supportive and
inclusive environment, Chinese MNCs can empower their Japanese employees and improve the
overall success of organizational change initiatives.
Summary: RQ2
The results of this part of the survey indicated that Japanese employees in liaison roles at
Chinese MNCs perform all HCNL roles—cultural interpreter, communication manager,
information resource facilitator, talent manager, and internal change agent. In their role as
cultural interpreters, they recognize the importance of improving cross-cultural collaboration by
facilitating communication and understanding between local employees and expatriates. Their
role as communication managers enables them to make an important contribution to the
company’s communication procedures, which can help develop productive relationships between
teams. In their position as information resource brokers, they demonstrate their commitment to
information sharing and mentoring, both of which contribute to the growth of talent and
transformation of the company. Furthermore, in their capacity as talent managers, they play an

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important role in finding and nurturing local talent, which contribute to the development of a
collaborative culture within the organization. Lastly, in their capacity as internal change agents,
they promote a healthy work environment by facilitating cultural integration and aligning
company practices with social ideals in the community. Notably, various factors influence their
effectiveness in these roles, such as the nature of their employment, their length of service, and
their involvement in decision-making. This finding underscores the need for companies to
provide their employees with tailored support and resources to further enhance their contribution.
Japanese employees in general play an important role in the success of Chinese MNCs, as they
help bridge cultural differences and boost business performance.
Results for Research Question 3
The third and final research question sought to demonstrate the strategies and themes
Japanese employees recommend to enhance their experience and effectiveness working in
Chinese MNCs through the responses of three open-ended questions: what additional knowledge
or skills would help the employee better perform their role, what motivates and demotivates the
employee within the workplace, and which organizational practices or policies could be
improved to better support work. The responses revealed four themes: language profic iency,
organizational communications skills, knowledge and qualifications, and motivational factors.
Language Skills
The results of the open-ended questions underscored the critical role of language skills in
enhancing the experiences and effectiveness of Japanese employees working in Chinese MNCs.
Language proficiency emerged as a significant challenge to employees in their effective
navigation of their roles. Language barriers hinder communication, collaboration, and the
understanding of organizational goals, affecting overall performance. In turn, inadequate

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language skills can lead to misunderstandings and reduced effectiveness in cross-cultural
interactions, creating obstacles that impede employee success. Given this context, MNCs should
invest in language training programs. Such initiatives can empower employees by enabling them
to communicate more effectively across cultural boundaries, thereby enhancing their ability to
perform their roles. This investment aligns with employees’ recognition of the importance of
language skills in improving their work experiences and effectiveness. Therefore, organizations
that prioritize language training can foster a more competent and engaged workforce. Beyond
language proficiency, the study also emphasized the importance of enhancing general
communication skills.
Effective interpersonal interactions in a multinational environment rely not only on
language proficiency but also on the ability to convey ideas clearly and collaborate with diverse
teams. Chinese MNCs should implement comprehensive training programs that address both
language and communication skills to create a collaborative workplace. Such training can help
employees build strong relationships and work effectively with colleagues from varied
backgrounds. Moreover, language proficiency directly influences employees’ roles as
information resource brokers and cultural interpreters. Employees proficient in the local
language can better facilitate knowledge sharing and bridge cultural gaps, enhancing
collaboration between expatriates and local staff. Therefore, language skills are essential for
employees to fulfill their roles effectively within the organization. By maximizing their
employees’ language proficiency, MNCs can ensure smooth communication and collaboration,
leading to improved organizational outcomes. The findings also indicated that language skills
can significantly impact motivation levels. Employees who feel knowledgeable and confident in
their language abilities were likely to be more motivated in their roles. Therefore, enhancing

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language skills can lead to higher engagement and productivity, which are crucial for MNCs
aiming to retain talent and improve performance. When employees believe they possess the
necessary communication skills, they are more likely to take initiative and contribute positively
to their teams.
The theme of local employees’ language skills is pivotal in informing strategies that can
enhance the experiences and effectiveness of Japanese employees in Chinese MNCs. Improving
language proficiency through targeted training initiatives can address communication barriers,
foster collaboration, and enhance knowledge sharing, contributing to better organizational
outcomes. By prioritizing language skill development, MNCs can create a more inclusive and
effective work environment that empowers their workforce to succeed.
Knowledge and Qualifications
The open-ended questions highlighted the significant impact of employee knowledge and
qualifications in determining the situations faced by Japanese employees in Chinese MNCs and
their level of effectiveness. Employees reported a high mean score for knowledge, indicating the
crucial role of effective knowledge management in ensuring success in these complex situations.
Moreover, the high scores indicated that Japanese employees generally evaluated their tasks, the
company’s objectives, and the training they receive positively. Powerful knowledge resources
have a positive impact on employee performance and engagement. This supports the idea that
effective knowledge management is an important component in a multi-country business
environment. The large positive correlation between knowledge and motivation also implied that
knowledge plays a key role in motivating employees. Employees possessing a strong sense of
knowledge are more likely to exhibit job motivation. As such, increasing knowledge through
targeted training and development programs can lead to higher motivation, productivity, and

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overall job satisfaction. By investing in the continuous development of employees, MNCs can
create an atmosphere in which employees experience a sense of ownership and engagement.
Meanwhile, MNCs should pay attention to the disparities in knowledge across various
job types and experience levels. The current results showed that contractual workers reported
significantly poorer knowledge scores compared with full-time employees. This discrepancy
suggests that contractual workers may struggle to access training and support, which could affect
their understanding of the organization’s objectives. Similarly, employees with less experience
(one to five years) scored lower than employees with more than six years of experience. The
implication is that knowledge resources are likely to evolve with seniority, highlighting the need
for MNCs to develop strategies that bridge these knowledge gaps. When it comes to supporting
employees with less experience or temporary workers, mentoring programs and scheduled
training can be particularly helpful. One of the key factors that impact knowledge assets is
participation in decision-making. The significant knowledge gap between workers actively
involved in decision-making and those who were not demonstrates the relevance of participatory
practices. Employees who are involved in decision-making tend to feel more educated and
empowered, which can lead to higher motivation and a deeper understanding of the company’s
goals. Therefore, MNCs should promote inclusive decision-making to improve the knowledge
resources and capacities of their workforce.
Employees demonstrated a proactive focus on professional development by expressing
their willingness to seek new information and qualifications. Twelve respondents to the survey
explicitly mentioned this requirement, demonstrating the keen interest in enhancing skills and
contributing to the company’s success. By ensuring that their employees have access to
appropriate training materials and certifications that align with their strategic goals, MNCs can

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develop a professional culture that values continuous learning and progress. The positive mean
score for organizational support indicated that employees found their working atmosphere
helpful in improving their knowledge assets. Effective organizational practices, such as training
and mentoring programs, have a significant impact on this impression. Thus, MNCs should
emphasize and implement support systems that strengthen employees’ knowledge and
qualifications.
Employee knowledge and qualifications are essential components of the thrust to
improve the experience and efficiency of Japanese workers employed by Chinese MNCs.
Companies can significantly improve employee engagement, motivation, and overall
performance by focusing on strengthening knowledge management practices, providing training
tailored to employee needs, and cultivating a culture of continuous learning. Eliminating
inequalities in access to information and promoting inclusive decision-making methods will also
help empower employees, benefiting the company’s success.
Money as Motivation
The results identified money as an important extrinsic motivator for Japanese employees
working in Chinese MNCs. Financial incentives were the most frequently mentioned motivator,
with 48 out of 154 responses, showing the crucial relation between financial rewards and
employees’ perceived effort and recognition within the organization. The strong emphasis on
financial rewards highlights the importance of providing employees with sufficient recognition
and reward for their efforts. The study also showed a clear link between financial incentives and
job satisfaction. Employees confirmed a correlation between competitive compensation packages
and their overall job satisfaction. Therefore, appropriate financial rewards are essential for
enhancing job satisfaction. The importance of job satisfaction as a fundamental component of

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motivation and retention underscores the need for companies to pay compensation that reflects
the value of the work performed by their employees. The perceived value of contributions also
enhances the impact of financial incentives as a motivator. If employees receive recognition for
their efforts and appropriate compensation, they are more likely to work effectively. This view
encourages employees to devote themselves to their tasks and responsibilities, as well as
cultivates a sense of commitment and dedication within the workforce.
Financial incentives also complemented intrinsic motivators, such as a sense of
achievement and opportunities for personal growth. The enjoyment that comes from completing
tasks and receiving praise is another source of incentive for employees, in addition to the
monetary benefits they receive. Poor financial stability can make it hard for employees to stay
motivated. MNCs should not underestimate this basic requirement. Meanwhile, the importance
attributed to financial incentives may lead to demotivation if employees perceive their
remuneration as inadequate. Employees who experience financial insecurity or dissatisfaction
with their salary are less motivated, which can have a negative impact on their overall
commitment and performance. This highlights the importance of conducting regular reviews and
ensuring that pay packages remain competitive and fair.
When it comes to a wide-scale employee motivation strategy, companies should place a
high priority on competitive compensation packages and recognize the importance of financial
incentives. This plan should also include the use of intrinsic motivators and a supportive work
environment. By addressing both the financial and non-financial components of motivation,
Chinese MNCs can develop a more engaged and productive workforce, ensuring long-term
success and stability.
Organizational Communications

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The summary results highlight the critical role of organizational communication skills in
influencing the experience and effectiveness of Japanese employees working in Chinese MNCs.
When it comes to developing knowledge assets and fostering a productive wo rk environment,
effective communication is extremely important. The high mean score for knowledge indicates
that, by and large, employees have a positive view of their knowledge level in relation to the
company’s goals and specific tasks. This sense of clarity indicates that when information is clear
and accessible, employees’ knowledge and engagement improve, leading to an improvement in
their performance.
A key finding is the importance of good communication in terms of its impact on
employee motivation. A clear link between knowledge and motivation suggests that employees
who feel informed and encouraged through open lines of communication are more likely to show
higher levels of motivation in their work. According to this finding, MNCs need to prioritize
transparent communication methods to improve employee motivation and overall performance.
This is because the perception of being well-informed has a direct impact on employee
engagement and productivity. When it comes to employee involvement in decision-making, the
results suggest a significant correlation between communication skills and employee
engagement. Employees who were involved in decision-making processes had significantly
higher knowledge scores compared with employees who were not involved. This underlines the
importance of implementing communication methods in companies that encourage participation.
Companies should promote knowledge sharing and increase employee engagement, which leads
to better results in the organization. Cultivating an inclusive atmosphere that allows employees to
express their views and participate in decision-making can achieve this.

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However, these findings also highlight the difficulties caused by communication barriers
in MNCs. The emphasis on the need to significantly improve communication skills reflects the
potential challenges that employees may face owing to language limitations and confusing
communication. These issues can lead to misunderstandings and reduced collaboration.
Therefore, MNCs should invest in training programs that improve not only language skills but
also overall communication skills. This type of project has the potential to improve collaboration
and understanding between employees from different backgrounds, which can lead to an increase
in the overall performance of the company. Furthermore, the effectiveness of communication
closely correlates with employees’ sense of support from the company. Employees are more
likely to feel supported by their organization if they have better access to information and
resources. This implies that multinational companies should strive to enhance their
communication channels to ensure their employees feel heard, respected, and aware of the
various support systems at their disposal. Companies can foster a more engaged and motivated
workforce by enhancing organizational support through effective communication.
Another important function that Japanese employees fulfill is that of a cultural translator
and mediator, helping to bridge communication barriers between local staff and expats. Strong
organizational communication skills comprise a critical factor contributing to their performance
in this role. This emphasizes the need for MNCs to promote cultural awareness and employ
communication tactics that enhance cross-cultural interaction to reduce the likelihood of disputes
and misunderstandings. Finally, the survey indicated a need for improved responsiveness and
regular feedback systems—employees want a communication process that goes both ways.
MNCs should formulate related strategies that can enhance an organization’s capacity to address
employee needs and enhance perceptions of support and engagement.

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The ability to communicate effectively within an organization is critical to formulating
policies aimed at improving the experience and performance of Japanese workers employed by
Chinese MNCs. By prioritizing successful communication techniques, companies can create a
friendly and supportive work atmosphere, which in turn promotes information sharing,
motivation, and overall performance. To make a significant contribution to employees’ success
in overcoming the difficulties of working in a multicultural environment, MNCs should
encourage participative behaviors and provide training.
This section focused on RQ3, pertaining to the strategies and themes Japanese employees
recommend to enhance their experience and effectiveness while working in Chinese MNCs. The
themes and recommendations identified provide valuable insights related to language
proficiency, employee knowledge and qualifications, monetary compensation, and the
importance of organizational communication. By reflecting on these recommendations, Chinese
MNCs can enhance the experience and efficiency of their local employees, leading to improved
collaboration, performance, and organizational enhancement.
Summary: RQ3
This chapter focused on the three research questions, which aimed to explore the
experiences of Japanese employees working for Chinese MNCs. The first question concerned
employee knowledge, employee motivation, company support, and obstacles faced by Japan ese
employees. The survey revealed that employees had very different perceptions of their roles,
with characteristics like decision-making authority, job seniority, and job type shaping their
views. Understanding the organization’s goals emerged as an important knowledge asset, and the
survey highlighted incentives and recognition as critical variables for employee motivation. The
study also shed light on the various aspects of the HCNL components that Japanese employees

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take on as responsibilities (RQ2). As cultural interpreters, communication managers, information
resource brokers, talent managers, and internal change agents, Japanese employees facilitate
cross-cultural communication, lead change projects, promote local talent, interpret documents,
and provide key information. Lastly, the study addressed the third research question by
identifying themes and recommendations that could enhance the working conditions of Japanese
employees in Chinese MNCs. The discussion covered language skills, applicable training and
qualifications, monetary rewards as motivation factors, and improved organizational
communication, as well as the relevance of these factors. Chapter five elaborates on these
findings and presents ideas for future studies.

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Chapter Five: Discussion and Recommendations
The purpose of this study is to gather insights, through the viewpoints of the Japanese
employee, on the challenges facing internationally expending Chinese MNCs that are attempting
to effectively integrate in Japanese cultures. The research aimed to shed light on the complexity
inherent in cross-cultural management and offer practical recommendations for stakeholders in
Chinese companies desiring to find a firm market presence in Japan. Knowing more about the
unique hurdles and openings presented by the Japanese business landscape forms an important
core requirement for Chinese MNCs to create effective measures that will help with their smooth
integration and sustainable development. Based on the analysis of the above factors, the study
offers recommendations for improving the viability of Chinese companies when they are doing
business in the Japanese market. The study sought to answer the following research questions.
This chapter begins with a discussion of findings, followed by recommendations for practice and
future research, and then the conclusion of this study.
Discussion
This section discusses the findings from the mixed methods study and relates them to the
scholarly literature and the theoretical framework, which was composed using a modified
version of the framework of Clark and Estes (2008) and combined with that of Vance et al.
(2014) on HCNs as local liaisons in MNCs, as discussed in Chapter Two.
Research Question 1: KMO
RQ1 pertained to the aspects of knowledge, motivation, and organizational support
provided to Japanese employees in Chinese MNCs. The results of the study showed that
Japanese employees in Chinese MNCs generally rated their organizational support, motivation,
and knowledge well. Workers had a good understanding of the company’s goals, tasks, and
training opportunities. Similarly, high levels of motivation reflected employees’ feelings of

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accomplishment, recognition, and self-confidence. They also recorded a positive mean score for
organizational support, which indicated the effective communication and support from expatriate
managers, thereby fostering career development and job satisfaction. These results suggest that
Chinese MNCs are creating an atmosphere that enhances the support, motivation, and expertise
of local employees, which can boost productivity and competitiveness in Japan.
Knowledge, Motivation, and Organizational Support
The findings are consistent with other research on MNCs’ performance and its relation
with knowledge, motivation, and organizational support factors. Effective knowledge transfer
within MNCs depends on subsidiaries’ absorptive capacity, which includes employees’ desire
and ability to assimilate and apply information (Minbaeva & Santangelo, 2018). The
organizational environment, which can either support or hinder knowledge -sharing practices
among employees, further strengthens this capability. Al-Saqri et al. (2018) pointed out that
MNCs can gain a competitive advantage through efficient human resource management practices
that engage employees. Yanting et al. (2023) emphasized the importance of localized human
resource management practices that are in line with the regional cultural and regulatory
environment, which can improve organizational support for employees in host countries. This
conclusion is also in line with the findings of Nguyen et al. (2023), who noted the importance of
creating a positive work atmosphere that fosters employee engagement and motivation,
especially for MNCs.
Demographic Factors
Based on demographic factors, the survey results showed significant differences in the
knowledge, motivation, and organizational support of local employees. The most notable
differences were between contract and full-time employees, employees with five years or less

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and six years or more of experience, and employees involved and not involved in decision -
making in six of the eight statistically significant factors. Contractual workers scored
significantly lower on knowledge compared with full-time employees. This finding indicates that
job stability promotes learning. Similarly, less experienced workers scored lower than their more
experienced colleagues, suggesting that more experience is associated with higher levels of
expertise. The motivation scores supported a parallel trend of the need for better support:
contractual workers scored lower than their full-time counterparts. Compared with employees
with more than six years of experience, those with less experience were also less motivated.
Finally, contractual workers scored lower on organizational support compared with full-time
employees, highlighting the importance of support and stability in the workplace. Participation in
decision-making also proved to be an important factor. Employee participation often resulted in
higher ratings, demonstrating the positive impact of participation on motivation, knowledge, and
perceptions of support in Chinese MNCs.
The literature also supports the findings that demographics impact the relation between
HCNs and MNCs. Studies have noted that the distinction between temporary and full-time
employees significantly affects the performance of MNCs. Compared with full-time employees,
contractual workers often face job insecurity and pay differentials, which can lead to workplace
conflict and have a detrimental effect on morale and productivity (Ajonbadi, 2015). Zaharie et al.
(2019) highlighted that more experienced employees often contribute to better decision-making
and strategic insight, which can improve MNCs’ performance in complex and diverse markets.
Cogin and Williamson (2014) indicated that less experienced employees may require more
guidance and support, which can strain resources and management capacity. Meanwhile, workers
who are involved in decision-making often show more motivation and engagement, which can

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lead to better performance outcomes (Claver-Cortés et al., 2018). Thus, organizations can
become more productive and adaptable in increasingly competitive global markets if they
address these issues comprehensively.
Correlation Amongst Variables
The present study revealed a strong correlation between knowledge, motivation, and
organizational support among Japanese employees in MNCs. The results identified positive
correlations between high levels of knowledge, motivation, and organizational support. An
implication is that the acquisition and use of information enhances employees’ motivation and
perceived company support. In addition, the correlation between motivation and organizational
support suggests that motivated employees are more likely to perform well in their position.
Thus, enhancing one of these elements, such as through providing training, motivation through
praise and encouragement, or strong organizational support, can lead to improvements in the
other elements. Chinese MNCs should adopt a comprehensive approach to employee
development by valuing information, encouragement, and support, which can enhance individual
performance and boost the company’s overall efficiency and competitiveness in the Japanese
market.
These results are consistent with the evaluation by Kurtessis et al. (2015) on the
association of organizational support with a number of beneficial outcomes, such as higher
motivation and retention. Khusniah et al. (2022) reinforced this relation by demon strating the
significant impact of both organizational support and motivation on employee performance,
underscoring their crucial role in the accomplishment of organizational objectives. Furthermore,
according to Minbaeva et al. (2013), the motivation of individual employees is crucial for the
successful transfer and absorption of knowledge in international corporations. MNCs can

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increase employee engagement and, consequently, the efficient application of knowledge in their
operations, by creating a supportive work environment that rewards and recognizes efforts.
The correlation analysis also showed a significant relation between knowledge,
motivation, and organizational support with all HCNL components, namely, cultural interpreters,
communication managers, information resource brokers, internal change agents, and talent
managers. The close intertwining of knowledge and information resource brokering highlights
the crucial role of effective information resource management in promoting the growth of
employee knowledge. The relation between information resource brokers and motivation
underscores the significant influence of information availability on employee engagement and
performance. Furthermore, the study found a strong correlation between organizational support
and the HCNL roles of internal change agents, information resource brokers, and talent
management. Thus, elevating these positions within the company can enhance employee support.
These findings have clear implications: Global organizations can create a synergistic effect—by
investing in people management, strengthening internal change agents, and establishing
information brokers, progress in one area is likely to benefit other areas. An all-encompassing
strategy can result in employees being better informed, motivated, and well supported, which
will increase the likelihood of the company’s success.
These results are consistent with previous research. As noted by Nguyen and Hong
(2013), local employees often possess valuable insights and knowledge about the host country’s
market dynamics, cultural nuances, and operational challenges. An HCNL can effec tively
harness this local knowledge by facilitating training and development programs that integrate
local expertise with the MNC’s global practices. Kim and Shin (2022) discovered that a
culturally appropriate leadership style can significantly influence employee motivation. The

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HCNL can create a more engaged workplace by understanding and addressing the unique
motivational elements of local employees. The HCNL can then provide this support by ensuring
that local employees have access to resources, training, and mentoring opportun ities. Wu et al.
(2019) highlighted the significant impact of organizational support on expatriates’ knowledge -
sharing behaviors, which can help foster a collaborative work environment. To develop a
motivated and collaborative workforce that can further drive the success in the host country,
Chinese MNCs should consider the crucial role of various HCNL components together with the
knowledge, motivation, and organizational support variables.
Open-ended Question Responses
Japanese employees in Chinese MNCs also faced challenges in the areas of knowledge,
motivation, and organizational support, according to findings from the open comments. Many
respondents cited the need for language skills for efficient job performance in a globally
connected workplace. Thus, Chinese MNCs need to commit capital to language and
communication training to improve their employees’ ability to deal with cultural differences and
foster fruitful interactions. In addition, the findings on motivation emphasize the importance of
rewards and recognition for employee engagement. Chinese MNCs should thus maintain fair and
transparent incentive systems to maintain strong employee morale. The respondents also called
for more clarity about corporate goals, which indicated a gap in current practices and the need
for better organizational support through clear communication. By improving language skills,
introducing equitable pay plans, and encouraging clear communication, Chinese MNCs can
create an atmosphere that not only motivates employees and increases their knowledge but also
improves the overall efficiency of the organization. These improvements can lead to a more
motivated and effective workforce and allow Chinese MNCs to participate in international trade.

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The study highlighted the importance of language skills, pay and recognition, and
organizational communication issues to a company’s overall success and operational efficiency.
In a global workplace, employees who are unable to communicate effectively may feel alienated
or undervalued, which can affect their engagement and morale (Bhar et al., 2022). MNCs in host
countries also face significant barriers when it comes to offering recognition and rewards for
productivity, and unequal pay can harm morale. Global corporations that implement inclusive
compensation policies often create a peaceful workplace, which improves business performance
(Abugre & Nasere, 2020). In addition, international corporations must have effective corporate
communication to overcome the challenges of conducting business in many cultural
environments. Ineffective communication can lead to miscommunication, decreased teamwork,
and lack of cohesion, all of which affect corporate success (Abdullah et al., 2013). Therefore,
addressing these issues is crucial to increasing local employee engagement, promoting
teamwork, and improving the performance of Chinese MNCs in Japan.
Relation to the Theoretical Framework
To address the research question on the organizational resources, motivation, and
knowledge of Japanese employees working in Chinese MNCs, the study formulated a theoretical
framework that could successfully capture the complexity of cross-cultural management. The
study combined the framework of Vance et al. (2014), which emphasizes the role of host country
employees as local liaisons, with the model of Clark and Estes (2008), which highlights the
importance of knowledge, motivation, and organizational barriers as critical components of
performance. The adapted framework accommodated the different perspectives of Japanese
employees and the effects of cultural environment and organizational support on employees’
motivation and knowledge. This framework not only enabled a thorough examination of the

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opportunities and difficulties in the Japanese business environment but also brought to light the
crucial role played by HCNLs in bridging the gap between local customs and Chinese MNCs. By
utilizing these theoretical insights, the study expands the current knowledge of the factors
influencing China–Japan working relations and offers practical suggestions that could improve
the sustainability and integration of Chinese MNCs in Japan. By embedding the experiences of
local employees in the larger organizational framework, this methodology has enhanced the
research and advanced the discussion on successful cross-cultural management techniques.
Summary
In summary, the results of the study successfully answer RQ1. The results also showed
that Chinese MNCs are doing a decent job in developing local employees’ knowledge and
motivation with the help of robust organizational structures that promote communication and
career advancement. However, challenges persist, particularly with regard to demographic
factors like work status and experience level, along with the barriers created by the lack of clear
reward plans and organizational communication, as well as language skills training. Chinese
MNCs can further increase organizational support and employee engagement by acknowledging
these issues and taking specific initiatives, such as improved language training and equitable
compensation systems. Addressing these issues improves overall organizational performance and
individual employee experience, allowing Chinese MNCs to succeed in the highly competitive
Japanese market. Therefore, this study expands knowledge on the dynamics of cross-cultural
management and provides useful advice for those interested in maximizing their integration
initiatives in Japan.
Research Question 2: HCNL

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RQ2 focused on the roles that Japanese employees play in Chinese MNCs as HCNLs.
According to the survey findings, Japanese workers in Chinese MNCs showed positive
participation in all HCNL components and demonstrated their skills in their positions as inte rnal
change agents, communication managers, cultural translators, information resource facilitators,
and talent managers. As evidenced by their high average scores for the HCNL components,
Japanese employees actively embraced these roles and emphasized their critical role in
promoting these roles in the workplace. Chinese MNCs are effectively utilizing the benefits of
HCNL roles to foster a productive workforce.
Research also supports these findings. According to Sokro and Pillay (2019), in addition
to successful knowledge transfer, HCNLs also promote a sense of inclusion, which can increase
employees’ motivation and willingness to work with foreign coworkers. MNCs can create an
effective and inclusive learning environment that benefits all stakeholders when they integrate
HCNL perspectives in their training and development plans. In addition, HCNLs have two roles
in the context of knowledge transfer—knowledge providers and recipients. How well the MNC’s
headquarters processes and transforms the knowledge it provides determines the success of its
subsidiaries (Park et al., 2021). This two-way exchange of information not only improves a
subsidiary’s operational capabilities but also gives the MNC a competitive advantage in the host
market (Hsu et al., 2021). Chinese MNCs can adapt their strategies to the local Japanese market
conditions by utilizing the knowledge and experience of HCNLs. Doing so will improve
performance and lead to successful business plans for operating in Japan.
Demographic Factors
The study also found the importance of demographics with respect to the HCNL
components. The survey data indicated a statistical significance in the HCNL components for six

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of the eight demographic variables: employment status, industry, company size, experience,
position, and involvement in decision-making processes. Compared with full-time employees,
contractual workers had more difficulty feeling involved and productive, as evidenced by their
consistently lower scores in all six categories. Another important factor was experience level.
Workers with more than six years of experience scored higher in the roles of internal change
agent, communication manager, talent manager, communication manager, and cultural
interpreter. In addition, workers involved in decision-making tended to receive much higher
scores, highlighting the importance of inclusive practices in increasing effectiveness and
engagement in these positions. According to these findings, Chinese MNCs can focus on
improving employee engagement, encouraging participation in decision-making, and providing
targeted training to improve employees’ skills in all HCNL components by targeting the
demographic variables.
The results are consistent with previous research findings. According to Smale et al.
(2015), MNCs that provide their local employees with the opportunity to participate in decision -
making processes generally find greater integration of local and foreign expertise, which
improves organizational performance. The ability of HNCs to help shape decisions can
strengthen their sense of belonging to the global organization, which is essential for developing a
unified corporate culture (Smale et al., 2015). Aligning local practices with the strategic goals of
the MNC facilitates greater alignment and easier knowledge transfer. By recognizing and
utilizing the contributions of HCNs, management accountability transforms the HCN
environment and can significantly enhance the learning process within the MNC (Abugre &
Nasere, 2020). Meanwhile, the introduction of high-performance work systems can create an
atmosphere that advances employee engagement and increases motivation. Practices that

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promote collaboration, skill enhancement, and recognition—all of which are critical factors in
cultivating a learning culture—characterize these systems (Abugre & Nasere, 2020).
Additionally, how management integrates HCNs in the organizational structure can influence
their commitment and desire to support expatriates. According to Sutini and Hanifah (2020),
enhancing employee performance and retention in international organizations requires tailored
HRM approaches that take into account the local cultural environment. Therefore, Chinese
MNCs should recognize the differences in demographic elements, which will enable HCNs to
optimize the benefits of the HCNL model.
Correlation Among Variables
The positive and significant correlations between the HCNL components for Japanese
employees in Chinese MNCs underscored the value of collaborative roles in enhancing
organizational effectiveness. In particular, the cultural interpreter role showed a strong positive
correlation with both the communication manager and information broker roles. An implication
is that effective cultural interpreting improves communication and information flow within the
organization. The communication manager plays a critical role in driving organizational change
and talent development, as evidenced by the close relation among the internal change agent,
information broker, and talent manager roles. The internal change agent and talent manager roles
also showed close relations, highlighting the role of the talent manager in promoting personal
growth and flexibility within the organization. The findings from the survey suggested that better
communication, teamwork, and overall organizational performance could result from a
synergistic approach to the development of the different positions. Thus, Chinese MNCs should
prioritize the promotion of all these interrelated roles to create a unified and effective workplace.

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Other studies also demonstrate the interconnectedness and significance of the HCNL
components. According to Thite et al. (2021), MNCs that hire employees who can act as cultural
translators help expatriates adapt and improve team interactions in general. This position not
only helps clear up misunderstandings but also promotes an inclusive workplace, which can
increase employee retention and satisfaction (Napathorn, 2020). In addition, cultural interpreters
can help convey implicit information that is often difficult to express but is crucial to functioning
well in many cultural contexts (Ambrosius, 2016). MNCs that prioritize effective communication
strategies have higher levels of employee engagement and performance, demonstrating the
importance of the communication manager (Li et al., 2019). Indeed, communication managers
are valuable for fostering connections between teams and facilitating knowledge transfer, leading
to a more unified company culture. Effective information resource brokers can lead to faster
resolution of problems and better responsiveness to market changes, which improves the
performance of the MNCs (Farcas & Gonçalves, 2017). Effective HRM also ensures that the
MNC possesses the essential skills and capabilities to thrive in the local ma rket, thereby
positively contributing to corporate success (Napathorn, 2020). Talent managers can increase
employee engagement and motivation, which reduces turnover and increases productivity by
creating an atmosphere that values local knowledge and encourages career advancement (Stokes
et al., 2015). Maley (2024) stated that organizations with strong internal change agents are better
able to deal with change and foster creativity, both of which are critical for sustainable success in
a highly competitive market. Internal change agents ensure that MNCs can succeed in many
cultural contexts and improve the overall effectiveness of the HCNL model by fostering a culture
of adaptation and continuous development.

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The high correlation between the HCNL components and KMO variables indicated the
proficiency of Japanese workers in their work in Chinese MNCs. The findings of the open-ended
questions underscored a strong emphasis on the role of cultural interpreters, communication
managers, and talent managers in enhancing language skills, providing monetary rewards, and
promoting strong organizational communication. Many respondents emphasized the critical role
of language skills for successful interactions and effective communication in a multicultural
environment, especially for those working as communication managers and cultural interpreters,
for whom overcoming language and cultural barriers is essential. They also noted the importance
of motivation—monetary rewards and a sense of accomplishment encouraged commitment to
their position. The employees indicated that the ability to clearly communicate goals and receive
recognition for their achievements were essential to their motivation, which in turn affected how
well they performed as internal change agents and talent managers. The employees also indicated
that better communication and clear goal setting could improve their ability to perform these
roles, highlighting the need for strong organizational support. MNCs can create an encouraging
and collaborative work environment that empowers Japanese employees and promotes the
company’s overall success in the Japanese market by focusing on these HCNL elements.
The literature also supports the above conclusions. Effective communication is essential
for the successful implementation of HCNL roles because it fosters an environment that is
conducive to open knowledge exchange (Vigier & Spencer-Oatey, 2017). MNCs that implement
multilingual communication strategies are better able to overcome barriers as they make it easier
for different teams to communicate with each other (Kalume et al., 2018). For MNCs to invest in
training and development initiatives and incentives that reinforce the HCNL model, funding is
essential. Muthusamy (2019) highlighted that companies can create a supportive atmosphere that

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encourages employee participation and engagement, which is crucial for the effective
implementation of HCNL, provided they have adequate financial support. Regarding effective
organizational communication, employee engagement and satisfaction are higher in
organizations with an open and participative communication climate, which has a direct impact
on the organization’s ability to adapt to changes and obstacles in the host country (Neill et al.,
2019). In addition, Maçães and Portas (2022) stated that strong communication makes it easier
for expatriates and HCNs to share best practices and expertise, which improves the learning
process of the organization as a whole. Therefore, overcoming language barriers through
effective communication strategies improves collaboration and knowledge transfer, whereas
adequate financial resources enable Chinese MNCs to invest in training, development, and
reward initiatives that support Japanese HCNLs. Strong organizational communication fosters a
culture of engagement and commitment, which leads to better performance in different cultural
contexts.
Relation to the Theoretical Framework
The theoretical framework adopting the concepts proposed by Clark and Estes (2008) and
Vance et al. (2014) proved very helpful in addressing RQ2. The framework accounted for
employee knowledge, motivation, and organizational support coupled with the HCNL f unctions
that Japanese employees in Chinese MNCs carry out. By adapting the HCNL model of Clark and
Estes (2008) to focus on Japanese workers’ perspectives as HCNs, the research could highlight
the crucial responsibility of Japanese employees in promoting cross-cultural integration and
knowledge transfer. Knowledge, motivation, and organizational support provided a framework
for examining the difficulties these workers faced and the skills they could bring to their
positions as information brokers, talent managers, internal change agents, cultural interpreters,

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and communication managers. By highlighting the behavioral functions inherent in these
positions and the ways in which they support organizational effectiveness and sustainability, the
framework of Vance et al. (2014) greatly enhanced the study. This integrated framework
emphasized the importance of creating an atmosphere that encourages knowledge exchange and
employee participation and helped identify the particular HCNL tasks performed by Japanese
workers. In sum, the theoretical framework helped address the research question and it
contributed to a broader discussion on cross-cultural management. It provided insightful
information that can improve the current understanding of the dynamics in the integration of
Chinese MNCs in the Japanese corporate environment.
In conclusion, RQ2 focused on the components of the HCNL roles adopted by Japanese
employees of Chinese MNCs. Japanese workers perform all HCNL roles, particularly the
positions of information resource facilitator and cultural interpreter. However, the positions of
communication manager and talent manager received the lowest ratings among these
components. The demographic factors impacting these positions highlight the importance of
adjusting tactics to take into account workers’ backgrounds, experiences, and involvement in
decision-making. Chinese MNCs have room to improve their performance in the Japanese
market by focusing on strengthening the positions of communication manager and talent
manager. Chinese MNCs can create a more productive and inclusive workforce by addressing
these issues, which will help them better navigate the challenges of Japan’s business climate.
Research Question 3: Themes and Strategies
According to the findings of RQ3, Japanese workers employed by Chinese MNCs are
looking for ways to enhance their experience and efficiency. Important issues include the ability
to communicate effectively within the organization, expertise and credentials, financial

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motivations, and language skills. Language skills are essential for effective communication and
teamwork, and employees want to keep learning. Financial incentives serve as a crucial
motivator, as a competitive salary is associated with both job satisfaction and motivation (Butt et
al., 2020). To create a productive working environment, organizations must ensure effective
organizational communication (Vance et al., 2014). Clear and easily accessible information has a
significant impact on employee motivation and performance (Yanting et al., 2023). In the present
study, the respondents suggested strengthening communication channels and introducing regular
feedback methods to encourage support and engagement. Chinese MNCs can create a workplace
that is more inclusive and productive by addressing the above issues and putting the suggested
techniques into action. Doing so can enhance collaboration, boost performance, and contribute to
the overall success of the company.
Research has also repeatedly emphasized the need for language skills to successfully
navigate cross-cultural workplaces. Kim et al. (2007) pointed out the influence of cultural
differences on interpersonal dynamics and emphasized the need for specific language training
programs to develop communication and collaboration. Furthermore, Li and Putterill (2007),
advocating for mentorship and inclusive decision-making procedures in cross-cultural
workplaces, confirmed the importance of encouraging individuals to engage in continuous
professional development. The results of the present study support the idea that strengthening
language competence can lead to higher levels of engagement and performance among Japanese
workers in Chinese MNCs. A significant number of Japanese workers in the study sample
similarly expressed a desire to develop professionally. Thus, companies can increase employee
engagement by introducing systematic opportunities for professional development.

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Furthermore, Endo et al. (2015) confirmed the effectiveness of language training and
financial incentives. They stated the need for both methods and that cultural subtleties can mask
the influence of extrinsic motivators, such as financial incentives. They suggested that intrinsic
motivators related to group cohesion and loyalty to the company may take precedence in the
particular corporate landscape in Japan. This finding helps contextualize the importance of
language competence and financial motives within Japan’s unique cultural framework.
Relation to the Theoretical Framework
When considering tactics that enhance the experiences of Japanese employees working
for Chinese MNCs, the relevance of the theoretical framework that integrated the models of
Clark and Estes (2008) and Vance et al. (2014) becomes evident. The modified KMO model
(Clark & Estes, 2008), focusing on addressing knowledge gaps through targeted language
training and professional development initiatives, aligns with the assertion that organizations
must adapt strategies to bridge deficiencies. The model provides a thorough examination of the
challenges faced by Japanese workers in Chinese MNCs and highlights the importance of
organizational barriers, motivation, and knowledge.
The HCNL paradigm (Vance et al., 2014) specifically highlights the roles of HCNs as
local liaisons, supporting knowledge transfer and organizational performance. It is particularly
relevant for Japanese employees working for Chinese MNCs as it demonstrates how HCNs can
reduce the likelihood of cultural misunderstandings and improve teamwork. Similarly, Ali and
Anwar (2021) emphasized that employee motivation is essential for performance in culturally
diverse MNC environments. The link between competitive salary packages and job satisfaction
highlights the need for MNCs to cultivate motivation among employees. The organizational
impact component of the framework points to the importance of cultural competence in

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increasing employee engagement. Cheng et al. (2022) called attention to the need for awareness
of cultural differences to make informed decisions. They urged Chinese MNCs to invest in
cultural education programs that recognize the importance of Japanese cultural values. This
commitment to cultural awareness is absolutely necessary to enhance business results and
successfully integrate Japanese employees in Chinese corporate structures.
In relation to RQ3, the study specifically highlighted a number of tactics that Japanese
workers suggest for improving their efficiency and experience in their work at Chinese MNCs.
Of particular importance is understanding and adapting to the unique cultural dynamics of
Japanese workers. Specific tactics include spending money on language training to improve
communication, which is essential to creating a collaborative environment in a diverse
workplace (Hsu, 2023). To help Japanese workers advance in their careers and feel valued and
included, Chinese MNCs could offer opportunities for continuous professional development. By
offering competitive compensation packages, Chinese MNCs can adopt financial incentives as a
key element that motivates Japanese employees to make valuable contributions. Chinese MNCs
can significantly enhance the career experiences of their Japanese employees by putting these
techniques into practice, which will increase employees’ overall productivity and job
satisfaction. The conclusions of the study serve as a useful guide for future practices to maximize
HCN integration in Chinese MNCs, which can enhance workplace dynamics and business
performance. The following section will discuss the recommendations for practice that highlights
what Chinese MNCs can do to further enhance their performance in the Japanese market.
Miscellaneous: Gender
According to the analysis of the survey results, gender was not a statistically significant
variable influencing any of the components. However, cultural context has a significant impact

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on how gender and survey responses relate to each other. As Kavas (2021) pointed out, standard
surveys cannot adequately reflect the deeply ingrained views and expectations regarding gender
roles in cultural contexts. Other contextual factors, such as workplace culture, may either interact
with or overshadow the direct effects of gender (Edgar et al., 2020). Future research must
consider how contextual factors can influence responses and perceptions, potentially leading to
the conclusion that gender is not a factor when, in fact, it may could be.
Implications for Practice
This section discusses recommendations to support the findings identified in Chapter
Four and discussed in this chapter. The study proposes the following four recommendations for
practice based on the survey results and findings:
1. Enhance language and cultural training programs.
2. Provide tailored professional development opportunities.
3. Implement recognition and reward systems.
4. Strengthen organizational communication.
Recommendation 1: Enhancing Language and Cultural Training Programs
Chinese MNCs face the challenge of navigating cultural and linguistic diversity in an
increasingly globalized corporate climate in countries like Japan. According to the participants’
responses to the open-ended questions, Chinese MNCs need to make significant investments in
in-depth language and cultural training for both local employees and those working remotely.
Such efforts have the potential to reduce misunderstandings, promote collaboration, and create a
working atmosphere that is conducive to all employees, which will lead to improved business
performance and competitiveness.
One of the core components of these training programs should be language sensitivity
training. Hsu (2023) emphasized the importance of developing employees’ language competence

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to remove communication barriers that could hinder both operational efficiency and
collaboration in the workplace. As this study showed, Japanese local employees find importance
in performing liaison duties that require a harmonious relationship between lo cal teams and
expats from their Chinese headquarters. To facilitate daily operations, Chinese MNCs can help
improve employees’ language skills to reduce the number of misunderstandings and promote a
unified work culture. In addition, cultural training is also necessary for developing an inclusive
culture within an organization. Rajpal and Onyusheva (2018) explained that successful cultural
training involves not only understanding the language but also an awareness of the social norms,
communication styles, values, and beliefs associated with the other culture. The development of
individualized training programs can equip employees with the essential skills to effectively
navigate cultural differences. These types of initiatives will foster greater respect for a variety of
viewpoints, thereby improving individual performance and strengthening the corporate culture.
The organization must support the success of these training programs. According to
Rozkwitalska et al. (2017), commitment to professional growth through comprehensive training
programs has the potential to significantly increase employee enthusiasm and job satisfaction.
Chinese MNCs can provide their local employees with the tools they need to succeed in their
jobs by incorporating these training programs in support systems. This approach helps create a
sense of belonging and engagement within the organization. Language and cultural training can
also enhance an organization’s ability to adapt to changing market conditions and improve its
reputation in the marketplace. Xu and Liu (2023) highlighted that successful training helps
communication with local stakeholders, which in turn promotes cultural sensitivity and
understanding. By utilizing these training measures, Chinese MNCs have the opportunity to
improve their relationships with local partners and consumers, demonstrate their cultural

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understanding, and gain important insights for adapting their products and marketing styles.
Utilizing this strategy not only improves operational efficiency but also establishes MNCs as
culturally sensitive and socially responsible companies.
Investing in enhanced language and cultural training programs is imperative for Chinese
MNCs interested in successfully navigating the cultural and linguistic diversity in Japan. These
organizations have the opportunity to improve communication, increase cross-cultural skills, and
ultimately gain a competitive advantage in the local market if they prioritize these projects. As
globalization continues to reshape the business landscape, Chinese MNCs operating in a variety
of contexts should place a strong focus on developing effective communication and collaboration
through the implementation of comprehensive language and cultural training programs.
Recommendation 2: Providing Tailored Professional Development Opportunities
The results of this study highlighted the importance for Chinese MNCs to offer tailored
professional development opportunities that align with the career goals of their workforce. This
strategy helps cultivate a workforce that is committed to their work as well as improve the
company’s overall performance (Fregidou-Malama et al., 2019). Responses to the open-ended
survey questions revealed the desired of Japanese employees to understand the goals of their
company goals and their own responsibility in achieving such goals. However, some employees
struggled to align their personal and professional goals with the company’s goals. MNCs can
overcome these issues by equipping employees with the information and skills they need to
effectively accomplish their tasks through the implementation of tailored development
opportunities.
In terms of employee engagement, motivational ideals are crucial. The employees in the
sample emphasized the significance of their contributions to the company’s success and the

169
importance of receiving recognition for their efforts. Chinese MNCs can empower their
employees through targeted programs such as mentoring initiatives and leadership training. By
cultivating a sense of dedication and commitment to the organization, this empowerment leads to
increased productivity and employee retention. As noted by Thompson and Chmura (2015),
employees who feel that their employer has a stake in their progress are more likely to
demonstrate an emotional commitment to their work, which leads to higher job satisfaction.
In addition, the results of this study showed that having Japanese employees in liaison
roles, such as cultural interpreters and talent managers, is extremely important when it comes to
bridging cultural differences and fostering collaboration. By offering these employees the
opportunity for individual professional development, the company can provide them with the
skills they need to thrive in their jobs, which in turn enhances the company’s ability to
collaborate across cultural boundaries. This measure is crucial for Chinese MNCs that want to
work effectively in culturally diverse areas. According to Manolopoulos et al. (2011),
individualized career development opportunities can significantly improve employee
engagement and retention by ensuring the alignment of the individual career choices of
knowledge workers. They validated the desirability of implementing such opportunities. MNCs
should provide a variety of preferences, such as a managerial, technical, project-based, or
entrepreneurial career. Managers of Chinese MNCs can show their commitment to the
professional development of their employees by recognizing these preferences and developing
career paths tailored to them. This, in turn, can lead to higher levels of employee engagement
and retention.
Moreover, MNCs must tailor training programs to the needs of the local market to ensure
that the workforce has the specific skills and information required to succeed in the competitive

170
local business environment. MNCs can achieve such customization by training staff on cultural
nuances, market trends, and consumer preferences (Fregidou‐Malama et al., 2019). This method
helps cultivate a workforce that is not only capable of meeting the needs of a dynamic market but
is also culturally sensitive and able to adapt to the prevailing business practices in a region.
In summary, it is critical for Chinese MNCs operating in Japan to personalize their
professional development opportunities to facilitate cultural adaptation, increase employee
engagement, and improve business productivity. This strategic investment not only results in a
more motivated and engaged workforce but also enables the company to be more successful in
the global marketplace.
Recommendation 3: Implementing Recognition and Reward Systems
Chinese MNCs establishing strong recognition and reward systems can significantly
reduce employee turnover while improving organizational performance, particularly for
employees in HCNL roles. These positions are important for improving overall organizatio nal
performance and fostering collaboration across cultural boundaries (De Gieter & Hofmans,
2015). Chinese MNCs should address the concerns participants raised through the open -ended
questions regarding inadequate recognition by creating a well-designed recognition and reward
framework. This ensures that employees feel valued for their contributions.
According to the findings of this study, organizational recognition plays a role in how
Japanese employees feel about their work. A number of survey respondents indicated that (an
insufficient) amount of monetary recognition could lead to a decrease in motivation. Chinese
MNCs can implement a comprehensive recognition and reward system to bridge this gap and
foster a culture where employees truly feel valued. Such a system should consider employees’
length of service and involvement in decision-making processes (Abugre & Nasere, 2020). This
will ensure that both long-serving employees and new starters feel valued. By tailoring

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recognition practices to the specific circumstances and experiences of employees, MNCs can
increase the relevance and impact of these activities, leading to higher motivation and
engagement. Gautam (2019) emphasized that effective incentive systems provide a tangible
appreciation of the contributions made by employees, which can significantly increase both job
satisfaction and productivity. Employees who perceive recognition and rewards for their efforts
are more inclined to sustain or enhance their performance, thereby resulting in increased
productivity. Gautam (2019) also highlighted that tangible rewards, such as bonuses, promotions,
and other types of recognition, serve to reinforce excellent behaviors and contribute to a more
productive and satisfying work environment.
Indeed, organizations that implement comprehensive reward systems for their employees
reduce employees’ intention to leave the company (Ambrosius, 2016). Rewards help cultivate a
sense of gratitude and belonging, creating a mutually beneficial relationship between the
company and its employees. Appreciating employees’ efforts strengthens their commitment to
the company, thereby reducing attrition (Ambrosius, 2016). Cultivating a positive working
environment by introducing comprehensive incentive schemes has the effect of making
employees feel more comfortable, which strengthens their loyalty to the company (Ambrosius,
2016). However, Chinese MNCs must adapt their recognition and incentive systems to local
cultural norms. Ogechi et al. (2024) suggests that recognizing and appreciating the values and
customs of the workforce can foster a sense of belonging and integration in the workforce.
Recognizing employees’ cultural expectations increases their motivation and commitment to
their jobs. This cultural alignment not only improves the performance of the company but also
promotes a cohesive culture within the organization, which is particularly important for MNCs
operating in a diverse environment (Rozkwitalska et al., 2017).

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When Chinese MNCs operate in host countries, they must implement effective
recognition and incentive programs for their employees. By increasing motivation, ensuring
cultural fit, and improving employee retention, these systems make a positive contribution to the
success and sustainability of the company (Ploscaru et al., 2023). Chinese MNCs have a
responsibility to prioritize the creation of recognition and incentive systems that align with the
employees’ experiences and values to cultivate a workforce that is fully engaged, motivated, and
committed to achieving corporate goals. This strategic investment in employee recognition will
lead to a more productive, engaged, and fulfilled workforce, laying the foundation for the
company’s long-term success.
Recommendation 4: Strengthening Organizational Communication
Chinese MNCs cannot overestimate the importance of organizational communication and
the importance of open dialogue. When HCNLs understand the company’s goals, roles, and
missions, they can help cultivate a sense of belonging and purpose (Ploscaru et al., 2023).
Chinese MNCs have a responsibility to prioritize the creation of effective communication
channels and feedback systems that encourage transparent interaction between management and
employees to further increase employee motivation and engagement.
Employees’ desire to contribute to the company’s success and receive recognition for
their efforts is a critical factor with a significant impact on employee motivation and satisfaction.
When employees receive regular feedback, they feel more connected to the company, which in
turn increases their motivation and commitment. Indeed, MNCs that place a high value on direct
contact and feedback are more likely to create a pleasant working environment (Lavelle et al.,
2010). This strategy promotes trust, empowerment, and employee engagement, leading to
increased morale and job satisfaction (Deng & Xu, 2014). To encourage employee engagement,
MNCs should ensure that their employees feel heard and respected.

173
Chinese MNCs have the opportunity to set up efficient feedback procedures using
suggestion boxes, town hall meetings, and surveys. Using these platforms, management can
proactively address issues raised by employees and make the most necessary changes. MNCs
should improve communication channels and feedback systems in order to be successful in the
countries in which they operate (Gabel-Shemueli et al., 2019). Effective communication aids in
not only understanding other cultures and facilitating smooth interactions but in making
informed decisions that are sensitive to the unique demands and challenges of the local
environment. MNCs have the opportunity to improve employee engagement through open
communication, which can lead to increased production and morale. Furthermore, as this study
highlighted, demographic factors influence employee satisfaction, such as nature of job, length
of service, and involvement in decision-making. Managers can gain a deeper understanding of
these elements by strengthening feedback systems that allow them to support employees
individually and make employees feel appreciated and understood. This also helps to create a
constructive working atmosphere that is conducive to better performance.
Kim and Shin (2022) emphasized the importance of effective organizational
communication in aligning a company’s ideals with local community practices. MNCs can
bridge the gap between their corporate principles and the expectations of local communities if
they cultivate excellent communication skills among their leaders. To ensure that leaders are able
to successfully communicate the company’s vision and strategic policies to employees, MNCs
should craft leadership training programs that place a strong emphasis on strengthening
communication skills that can lead to greater alignment and engagement within the organization.
In sum, Chinese MNCs operating in Japan should strengthen their organizational
communication channels and feedback procedures. The more Chinese MNCs can create an

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engaged and productive workforce by strengthening employee voices, the more they can
improve organizational legitimacy and promote cultural integration. This strategic investment in
communication not only leads to higher employee satisfaction but also enab les sustainable
success in Japan.
Recommendations for Future Research
This mixed methods study based on the opinions of Japanese workers employed by
Chinese MNCs provides an opportunity to conduct further research to improve the current
understanding of the practices of Chinese MNCs operating in Japan and even other host
countries. These suggestions will improve the current knowledge of cross-cultural management,
as well as the experiences of workers working for Chinese MNCs as a whole.
Future research could broaden the scope of the target population beyond Japanese
employees in Chinese MNCs. Research on employees of other nationalities that are employed by
Chinese MNCs can determine if the present findings are unique to solely Japanese employees. In
addition, assessing Japanese employees working at non-Chinese MNCs will generate an
understanding of whether these results are unique to the Chinese MNC context. Given the high
Cronbach’s alpha values of the measures, the survey in this study could be useful when applied
to employees from a variety of international organizations. Comparative insights into the
integration difficulties experienced by people of different nationalities working in Japan or
elsewhere can provide a comprehensive understanding of the cross-cultural dynamics at play,
revealing specific barriers and best practices. To gain detailed knowledge of the elements that

175
contribute to effective integration in the Japanese market, this comparative method can also shed
light on unique sector practices and cultural nuances.
Further research to address a comprehensive understanding of the integration process by
incorporating a wider range of qualitative research methods would also enrich future studies.
This study employed a quantitative technique, albeit incorporating three open -ended survey
questions. Qualitative research methods, such as interviews and focus groups, will provide
deeper insights into the life experiences of Japanese employees working for Chinese MNCs.
Interviews can explore personal narratives about cultural adjustment, communication barriers,
and feelings of management support. Qualitative data can support the quantitative findings by
triangulating the findings, enhancing the validity of the conclusions on employee experiences
and organizational dynamics, and bolstering conclusions on the integration process.
In addition, future research can focus on specific HCNL roles within Chinese MNCs.
Specific research can shed more light on the functions and difficulties associated with the
categories of positions. For example, training programs to improve intercultural competencies
could benefit from knowledge of how cultural interpreters support communication between local
employees and expats. Similarly, researchers can examine the impact of internal change agents
on building a collaborative organizational culture to identify techniques that promote integration
and alignment with local values. Researchers will be able to identify specific recommendations
to improve the particular problems and contributions of these positions by examining the unique
issues associated with these roles. Findings from such work will determine the tactics for

176
empowering local personnel in their key positions by elucidating the particular dynamics
associated with these jobs.
Finally, it is critical to have an evaluation of the success of cultural training programs for
Chinese MNCs operating in Japan to identify the impact of these programs on employee
integration and performance when implemented. Future evaluations could examine changes in
employee attitudes, cultural awareness, and communication effectiveness following training
programs. Organizations could conduct these evaluations both before and after the training
phase. Furthermore, by scrutinizing the content of these training programs and their delivery
methods, researchers can identify areas of excellence and areas for improvement. In addition,
researchers can evaluate how individual training that takes into account the specific conditions of
the company and the responsibilities of employees impacts the effectiveness of integration
efforts. Examining the relation between language competency and training results may also shed
light on how language skills can improve the ability to communicate and work together across
cultural boundaries.
These four primary recommendations significantly enhance the current understanding of
cross-cultural management: broadening the scope of research, employing diverse research
methods, focusing on specific liaison roles, and evaluating cultural training initiatives. To foster
better collaboration and performance in the global business landscape, future research can
contribute more effective strategies for improving the integration experiences of Japanese
employees working for Chinese MNCs by addressing these recommendations.
Conclusion
The aim of this study was to provide insights into the difficulties faced by Chinese MNCs
in the complex integration in the Japanese market from the perspective of Japanese employees.
The study shed light on the complex dynamics of cross-cultural management and the essential

177
role that local employees play in supporting effective integration. The findings show that while
Chinese MNCs are overall doing well in terms of knowledge, motivation, and organizational
support, they need to pay attention to differences in the scores based on demographic factors. For
Chinese MNCs to ensure the alignment of employee roles with the overall organizational goals,
they must consider the demographic variables of years of tenure, status, and employee decision -
making capabilities.
Cultural interpreters, communication managers, talent managers, information resource
facilitators, and internal change agents are the roles that Japanese employees perform as HCNLs
in Chinese MNCs. Their contributions can not only improve communication procedures but also
foster a culture of collaboration within the organization, which is a key component to business
success in Japan. To improve employee engagement and performance, organizations need to
address the problems identified—the need for language training, reward-based recognition,
professional development support, and better organizational communication. The current
findings contribute to the growing knowledge of cross-cultural management and global trade
relations between China and Japan. They also emphasize the need for companies to develop
complete integration strategies that account for the cultural dynamics of the local environment.
The study has potential implications in the context of Chinese MNCs and their
integration with local Japanese markets. A well-structured and effective cross-cultural
management strategy can serve as a catalyst for improving the overall performance and
adaptability of Chinese MNCs in Japan. Such strategies can empower local employees, improve
their job satisfaction, and contribute to the development of a cohesive and high -performing
workforce. In this regard, this study is not only an academic exercise but a call to action for all
stakeholders in these companies to re-evaluate and refine their approaches to cross-cultural

178
integration. In doing so, they can foster harmonious collaboration between Chinese and Japanese
employees, creating an environment that benefits both the companies and their local workforce.
Finally, the study recommends that future research should broaden its scope, examine
comparative viewpoints across a variety of multinational companies, and utilize a variety of
approaches to gain a thorough understanding of the difficulties associated with cross-cultural
integration. In-depth analyses of specific HCNL roles and evaluations of cultural training
programs can further improve the effectiveness of integration efforts. By focusing on these areas,
future studies will further expand knowledge of the dynamics that shape interactions between
people of different cultures, which will ultimately contribute to the sustainable development of
Chinese MNCs in the Japanese market.

179
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Appendix A: Survey Questions
Dear Participant,
This survey is part of a study designed to better understand local employee engagement in multinational firms in Japan. The
aim of this research is to enhance the employee experience and effective integration of firms operating in Japan. Your insigh ts will be
most valuable for this study. This anonymous survey should take no more than 10 –15 minutes to complete. The survey does not
collect any personal identifiable data. Your participation in this survey is completely voluntary.
If you have any questions or concerns, please do not hesitate to contact the study director, Takeo Kamai, at tkamai@usc.edu.
Thank you in advance for your participation!
Table A1
Sample Survey Questions
Question
Open or
Closed?
Level of
measurement
(nominal, ordinal,
interval, ratio)
Response options (if
close-ended) RQ
Concept under
measurement (from
emerging conceptual
framework)
Part 1: Demography
Sex: Please indicate your sex. Closed Nominal - Male
- Female
- Other
Demographic
What is your employment status? Closed Nominal - Permanent staff
- Contract staff A
Demographic

216
- Contract staff B
- Temporary staff
- Secondee
- Part-time
- Gig worker
- Officer/Board member
- Self-employed
- Other
Which industry best describes
your current occupation?
Closed Nominal - Information
Technology (IT)
- Health Care
- Finance and Banking
- Retail
- Manufacturing
- Hospitality and
Tourism
- Media and
Communications
- Other (please specify)
_______________
Demographic
What is the size of your company
(number of employees)?
Closed Nominal - Small (1–10
employees)
- Medium (11–50
employees)
- Large (51–500
employees)
- Enterprise (500+
employees)
Demographic

217
Age: Please select your age
range.
Closed Nominal - 18–24 years old
- 25–34 years old
- 35–44 years old
- 45–54 years old
- 55–64 years old
- 65 years old or above
Demographic
How many years of experience
do you have in your current
organization?
Closed Nominal - Less than 1 year
- 1–5 years
- 6–10 years
- 11–15 years
- 16+ years
Demographic
What is your current position
within the organization?
Closed Nominal - Operative level
- Supervisory/Middle
management level
- Upper management
Demographic
Are you involved in decisionmaking processes within your
company?
Closed Nominal - Yes
- No
Demographic
Part 2: Liaison Role
Components
I often clarify ambiguous
communications between
expatriates and local staff.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Cultural Interpreter

218
I guide expatriates in
understanding local cultural
norms and practices.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Cultural Interpreter
I mediate conflicts between
expatriates and local staff
effectively.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Cultural Interpreter
I translate communications
accurately between expatriates
and local staff.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Communication Manager
I moderate and facilitate
communications to ensure clarity
and appropriateness.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Communication Manager
I serve as a mediator to ensure
smooth information flow within
the workplace.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
Communication Manager

219
6. Strongly Agree
I effectively bridge external
market information relevant to
our operations.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Information Resource
Broker
I am a reliable source of
organizational memory, retaining
critical operational knowledge.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Information Resource
Broker
I provide crucial informal
knowledge about the organization
to new staff and expatriates.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Information Resource
Broker
I identify and recommend local
talents suitable for leadership or
critical roles.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Talent Manager
I coach and mentor local staff to
improve their skills and
knowledge.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
Talent Manager

220
5. Agree
6. Strongly Agree
I actively engage in the career
development of employees,
providing guidance and
opportunities.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Talent Manager
I co-plan organizational changes
with expatriates, ensuring
consideration of local conditions.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Internal Change Agent
I successfully execute change
initiatives, ensuring they align
with local practices and norms.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Internal Change Agent
I facilitate workforce alignment
and commitment to
organizational change.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Internal Change Agent

221
I build and maintain a culture of
trust and openness that supports
the change process.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Internal Change Agent
Part 3: Knowledge, Motivation,
and Organizational Barriers
I have sufficient understanding of
the corporate goals of the MNC.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Knowledge
I am well-informed about my role
and responsibilities in this
organization.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Knowledge
I receive adequate training to
perform my tasks effectively.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Knowledge

222
I feel it is important to contribute
to the success of this
organization.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Motivation
My achievements are recognized
and rewarded appropriately.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Motivation
I am confident in my ability to
accomplish my tasks.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Motivation
I receive sufficient support from
the headquarter office to
understand their expectations.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Organizational Support
The organization supports my
professional development and
career growth.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
Organizational Support

223
4. Somewhat Agree
5. Agree
6. Strongly Agree
Communication between HCNs
and expatriates is effective and
open.
Closed Ordinal 1. Strongly Disagree
2. Disagree
3. Somewhat Disagree
4. Somewhat Agree
5. Agree
6. Strongly Agree
Organizational Support
Part 4: Open-Ended Questions
Please provide detailed answers
based on your experiences.
What additional knowledge or
skills would help you better
perform your role?
Open Nominal
What motivates you the most in
your work and what demotivates
you?
Open Nominal
Describe any organizational
practices or policies that you
could improve to better support
your work.
Open Nominal

224
Appendix B: Tables
Table B3
Descriptive Statistics and Means Comparisons: Knowledge
Comparison n M SD df t F p
Sample 279 4.47 1.25
F
M
102
177
4.38
4.53
1.34
1.20 1 0.92 0.84 .360
<38
38+
135
144
4.58
4.38
1.26
1.24 1 -1.35 1.83 .177
CT
PERM
20
259
3.33
4.56
1.27
1.21 1 4.35 18.96 .0001
IT
OTH
103
176
5.02
4.15
1.01
1.27 1 -5.94 35.24 .0001
LRG
OTH
131
148
4.72
4.25
1.23
1.24 1 -3.18 10.10 .002
1–5
6+
52
227
3.76
4.64
1.20
1.21 1 4.74 22.51 .0001
OTH
SMM
154
125
4.19
4.83
1.30
1.10 1 4.38 19.19 .0001
N
Y
68
211
3.78
4.70
1.11
1.22 1 5.47 29.98 .0001
Note: See Table 1 for the definition of the demographic variables.

225
Table B4
Descriptive Statistics and Means Comparisons: Motivation
Comparison n M SD df t F p
Sample 279 4.43 1.26
F
M
102
177
4.36
4.48
1.33
1.22 1 0.75 0.56 .456
<38
38+
135
144
4.53
4.35
1.29
1.23 1 -1.18 1.40 .024
CT
PERM
20
259
3.38
4.51
0.94
1.25 1 3.97 15.76 .0001
IT
OTH
103
176
4.96
4.13
1.03
1.28 1 -5.64 31.76 .0001
LRG
OTH
131
148
4.63
4.26
1.26
1.24 1 -2.48 6.17 .014
1–5
6+
52
227
3.63
4.62
1.17
1.21 1 5.31 28.20 .0001
OTH
SMM
154
125
4.15
4.78
1.28
1.14 1 4.24 18.00 .0001
N
Y
68
211
3.75
4.65
1.09
1.23 1 5.40 29.13 .0001
Note: See Table 1 for the definition of the demographic variables.

226
Table B5
Descriptive Statistics and Means Comparisons: Organizational Support
Comparison n M SD df t F p
Sample 279 4.39 1.31
F
M
102
177
4.38
4.40
1.32
1.30 1 0.17 0.03 .867
<38
38+
135
144
4.55
4.25
1.27
1.33 1 -1.90 3.61 .059
CT
PERM
20
259
3.13
4.49
1.03
1.27 1 4.64 21.56 .0001
IT
OTH
103
176
4.96
4.06
1.07
1.32 1 -5.89 34.69 .0001
LRG
OTH
131
148
4.63
4.18
1.27
1.30 1 -2.90 8.43 .004
1–5
6+
52
227
3.64
4.57
1.26
1.26 1 4.79 22.90 .0001
OTH
SMM
154
125
4.07
4.79
1.32
1.18 1 4.74 22.49 .0001
N
Y
68
211
3.53
4.67
1.11
1.24 1 6.76 45.72 .0001
Note: See Table 1 for the definition of the demographic variables.

227
Table B6
Descriptive Statistics and Means Comparisons: Cultural Interpreter
Comparison n M SD df t F p
Sample 279 4.37 1.38
F
M
102
177
4.36
4.38
1.43
1.35 1 0.13 0.02 .894
<38
38+
135
144
4.41
4.34
1.42
1.33 1 -0.39 0.15 .695
CT
PERM
20
259
3.52
4.40
1.17
1.37 1 2.93 8.59 .004
IT
OTH
103
176
4.93
4.04
1.17
1.38 1 -5.44 29.62 .000
LRG
OTH
131
148
4.57
4.20
1.33
1.39 1 -2.28 5.22 .023
1–5
6+
52
227
3.85
4.49
1.24
1.38 1 3.11 9.70 .002
OTH
SMM
154
125
4.05
4.77
1.37
1.28 1 4.49 20.12 .0001
N
Y
68
211
3.75
4.58
1.17
1.38 1 4.48 20.07 .0001
Note: See Table 1 for the definition of the demographic variables.

228
Table B7
Descriptive Statistics and Means Comparisons: Communication Manager
Comparison n M SD df t F p
Sample 279 4.29 1.40
F
M
102
177
4.33
4.26
1.37
1.42 1 -0.42 0.18 .673
<38
38+
135
144
4.49
4.09
1.32
1.44 1 -2.4 5.85 .002
CT
PERM
20
259
3.30
4.36
0.96
1.40 1 3.34 11.15 .001
IT
OTH
103
176
4.82
3.98
1.25
1.39 1 -5.08 25.83 .0001
LRG
OTH
131
148
4.55
4.05
1.39
1.37 1 -3.00 9.01 .003
1–5
6+
52
227
3.56
4.45
1.22
1.38 1 4.30 18.52 .0001
OTH
SMM
154
125
3.95
4.70
1.39
1.30 1 4.57 20.85 .0001
N
Y
68
211
3.36
4.58
1.16
1.34 1 6.76 45.71 .0001
Note: See Table 1 for the definition of the demographic variables.

229
Table B8
Descriptive Statistics and Means Comparisons: Information Resource Broker
Comparison n M SD df t F p
Sample 279 4.31 1.36
F
M
102
177
4.34
4.30
1.42
1.32 1 -0.24 0.06 .811
<38
38+
135
144
4.46
4.17
1.36
1.34 1 -1.80 3.23 .074
CT
PERM
20
259
3.12
4.41
1.26
1.32 1 4.22 17.83 .0001
IT
OTH
103
176
4.89
3.98
1.16
1.35 1 -5.69 32.42 .0001
LRG
OTH
131
148
4.58
4.08
1.31
1.35 1 -3.16 10.00 .002
1–5
6+
52
227
3.44
4.51
1.16
1.32 1 5.40 29.12 .0001
OTH
SMM
154
125
3.95
4.77
1.40
1.15 1 5.24 27.47 .0001
N
Y
68
211
3.45
4.59
1.15
1.30 1 6.47 41.82 .0001
Note: See Table 1 for the definition of the demographic variables.

230
Table B9
Descriptive Statistics and Means Comparisons: Talent Manager
Comparison n M SD df t F p
Sample 279 4.26 1.42
F
M
102
177
4.27
4.25
1.43
1.41 1 -0.08 0.01 .938
<38
38+
135
144
4.48
4.05
1.32
1.48 1 -2.56 6.57 .011
CT
PERM
20
259
2.95
4.36
1.07
1.39 1 4.43 19.65 .0001
IT
OTH
103
176
4.84
3.92
1.19
1.43 1 -5.46 29.8 .0001
LRG
OTH
131
148
4.52
4.03
1.42
1.38 1 -2.95 8.71 .003
1–5
6+
52
227
3.38
4.46
1.17
1.39 1 5.20 27.05 .0001
OTH
SMM
154
125
3.86
4.75
1.47
1.19 1 5.47 29.94 .0001
N
Y
68
211
3.18
4.61
1.22
1.30 1 8.04 64.58 .0001
Note: See Table 1 for the definition of the demographic variables.

231
Table B10
Descriptive Statistics and Means Comparisons: Internal Change Agent
Comparison n M SD df t F p
Sample 279 4.29 1.38
F
M
102
177
4.31
4.28
1.38
1.39 1 -0.17 0.03 .864
<38
38+
135
144
4.50
4.09
1.26
1.47 1 -2.46 6.07 .001
CT
PERM
20
259
3.14
4.38
1.10
1.36 1 3.96 15.70 .0001
IT
OTH
103
176
4.85
3.96
1.19
1.39 1 -5.46 29.77 .0001
LRG
OTH
131
148
4.55
4.06
1.35
1.38 1 -3.00 8.99 .003
1–5
6+
52
227
3.46
4.48
1.20
1.35 1 5.00 25.09 .0001
OTH
SMM
154
125
3.89
4.77
1.44
1.14 1 5.57 31.07 .0001
N
Y
68
211
3.20
4.64
1.23
1.24 1 8.31 69.00 .0001
Note. 95% CI utilized for calculating p values. See Table 1 for the definition of the demographic
variables.

232
Table B11
Pearson’s Correlation Coefficients
Measure 1 2 3 4 5 6 7 8
1. Cultural Interpreter -
2. Communication Manager .82 -
3. Information Resource Broker .81 .90 -
4. Talent Manager .78 .89 .92 -
5. Internal Change Agent .77 .90 .90 .93 -
6. Knowledge .77 .80 .85 .81 .83 -
7. Motivation .73 .83 .87 .82 .83 .87 -
8. Organizational Support .74 .83 .87 .85 .87 .86 .89 -

Abstract (if available)

Abstract Multinational corporations (MNCs) encounter difficulties when expanding internationally into new markets. This study aimed to gather insights on Chinese MNCs as they attempt to effectively integrate into the Japanese markets through the viewpoints of local Japanese employees. The goals of this research are to shed light on the complexity inherent in cross-cultural management and to offer practical recommendations for stakeholders in Chinese companies desiring to set a firm market presence in Japan. This mixed methods study used a survey to address the research questions and 279 Japanese employees working at Chinese MNCs participated in the survey. The study analyzed the descriptive and inferential statistics, along with responses to open-ended questions. The survey revealed that employees' perceptions of their roles vary, with factors like decision-making authority, experience, and job type influencing their views. Japanese host country nationals, who act as cultural interpreters, communication managers, talent managers, and internal change agents, facilitate cross-cultural communication, lead change projects, promote local talent, and interpret documents. The study also identified language skills, training, qualifications, monetary rewards, and improved organizational communication as motivational factors and recommended improvements to enhance local Japanese employee knowledge transfer and strengthen Chinese MNCs performance. These findings indicate that a well-structured cross-cultural management strategy can enhance the performance and adaptability of Chinese MNCs in Japan. This strategy can empower local employees, improve job satisfaction, and contribute to a cohesive workforce. The study calls for stakeholders to re-evaluate their approaches to cross-cultural integration, fostering harmonious collaboration between Chinese and Japanese employees, and creating a mutually beneficial environment.

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Asset Metadata

Creator Kamai, Takeo (author)

Core Title An exploration of Japanese employees’ experiences at Chinese MNCs in Japan

School Rossier School of Education

Degree Doctor of Education

Degree Program Organizational Change and Leadership (On Line)

Degree Conferral Date 2024-12

Publication Date 01/21/2025

Defense Date 12/09/2024

Publisher Los Angeles, California (original), University of Southern California (original), University of Southern California. Libraries (digital)

Tag cross-cultural knowledge transfer,globalization,host country nationals,international management,Knowledge,motivation,multinational corporations,OAI-PMH Harvest,organizational support

Format theses (aat)

Language English

Contributor Electronically uploaded by the author (provenance)

Advisor Filback, Robert (committee chair), Chung, Ruth (committee member), Pritchard, Marcus (committee member)

Creator Email takeo.kamai@clsa.com,tkamai@usc.edu

Unique identifier UC11399FD4O

Identifier etd-KamaiTakeo-13769.pdf (filename)

Legacy Identifier etd-KamaiTakeo-13769

Document Type Dissertation

Format theses (aat)

Rights Kamai, Takeo

Internet Media Type application/pdf

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Source 20250115-usctheses-batch-1236 (batch), University of Southern California (contributing entity), University of Southern California Dissertations and Theses (collection)

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