Culture Capital and Social capital: An International Comparison of East Asian Expatriates CHANG, Chia-Ming Soochow University, Taipei, Taiwan 06 April 2010, Moscow

Phenomena and Issue  Rapid globalization in East Asian region reflects the growing tendency of interdependence among the region ’ s economies, which is deservedly brought to our attention today. Especially as China is actively pursuing economics opening and reform numerous cross- border corporations and businessmen are building networks of cooperation and competition in Chinese market.

Phenomena and Issue  In the circumstance it is timely and important to compare how managers of cross-border corporations from Taiwan Japan and Korea working in China perceive Chinese society and Chinese people. And how their culture capital and social capital are influencing their images of the hosting country and local government.

Phenomena and Issue  this paper tries to analyze expatriates of electric and electronic industries in Suzhou and Shanghai China including Korea Taiwan and Japan by using of the international survey data conducted in 2005 by the International Joint Workshop which was organized through Ministry of Education and Sport of Japan.

Theories and Concepts  Culture capital Pierre Bourdieu: includes 1.language ability, 2.previous knowledge of hosting country, 3.company ’ s supply of education.

Theories and Concepts  Social Capital  Mark Granovetter: most behavior is closely embedded in networks of interpersonal relations  James Coleman: networks and trust  Robert Putnam: networks, norms and trust  Nan Lin: investment in social relations with expected returns

Model and Hypotheses Culture Capital 1.Chinese Ability 2.Previous Knowledge of China 3.Company ’ s Supply of Ed. Social Capital 1.Social Relations (network) 2.Social Interaction ( trust ) Images of Chinese People 1.Important of interpersonal ties 2.Doing relation with Local Officials

Model and Hypotheses  Hypothesis 1:  The variables of Culture Capital (Chinese Ability Previous Knowledge of China and Company ’ s Supply of Education) are expected to influence on Images of Chinese People ( Important of interpersonal ties and Doing Relation with Local Officials) through Social Capital (Social Relations and Social Interaction).

Model and Hypotheses  Hypothesis 2: East Asian expatriates ’ images on importance of interpersonal ties and doing relation with local officials about Chinese people assumed to be influenced by various types of social capital.

Model and Hypotheses  Hypothesis 3: The social capital of East Asian expatriates is anticipated affected by their culture capital that they accumulate by themselves or educated by their company.

Data and Samples  The data collected from the International Joint Workshop organized by Ministry of Education and Sports of Japan in The main research tool was a survey of Korean Taiwanese and Japanese expatriates mainly working in electric and electronic industries in Suzhou and Shanghai using a structured questionnaire.

Data and Samples  A total of 144 valid questionnaires were collected in China including 49 Korean samples 18 Taiwanese respondents and 77 Japanese expatriates. Variation in sample distribution between countries stemmed both from variations in the difficulty in obtaining permission from company management.

Some Significant Findings  Firstly Chinese ability has not direct effect on images of Chinese people by expatriate managers.  However it should be via some tangible actions such as constructing private relationship and conducting interaction with local employees.

Some Significant Findings  This result is partly in accordance with our estimation that cultural capital (Chinese ability) impact on images of Chinese people (importance of interpersonal ties and the necessity of doing relations with local officials in doing business in China) by the way of social capital (social relation and social interaction).

Some Significant Findings  The fact also confirms the argument by Kelly (1995:241) that culture capital does not reproduce autonomously but only to the extent that the conditions surrounding the flow of specific forms of social capital are recreated.

Some Significant Findings  Secondly when the expatriates are more active in interaction with local employees they have stronger cognition of the importance of personal ties in Chinese society.  And if the expatriate managers have stronger social relations they will have stronger perception of the necessity of interaction with local officials in doing business in China.  It demonstrates that the expatriates ’ social capital has statistically significant relation to their images of Chinese people. This is also consistent with our hypothesis mentioned earlier.

Some Significant Findings  Thirdly if the expatriates have stronger Chinese abilities they will be more active in weaving their social relations and have more interests in social interaction with others.  It means that one of three variables indicating cultural capital has significant effect on constructing social capital of the expatriates.  This finding partly corresponds with our hypothesis aforementioned that the social capital of East Asian expatriates is affected by their culture capital － Chinese abilities that they cultivate by themselves.

Some Significant Findings  Finally from analysis of Taiwanese managers we could find that they excel in Chinese language that facilitates active contact with local government officials and local employees.  Compare to Japanese expatriates the Korean endeavor to learn Chinese that can foster their building up informal interpersonal ties and may advantage them to succeed in business in China.

Thank you!  Thank you for your attention!  Welcome your comment.  Contact