Hong Kong Business Structures

As has been mentioned, several approaches to business structure can be found in Hong Kong.

Most large multi-national organisations either headquartered in Hong Kong or with a regional presence in the territory, would exhibit a managed approach which would probably reflect structures endemic in the organisations’ home country. The Hong Kong Chinese managers would bring a unique flavour to the country office and differences might be felt by the visiting foreign businessperson, but many years of colonial history have left an indelible mark on these operations.

The most significant cultural differences will, however, be felt when dealing with the plethora of small and medium-sized indigenous Hong Kong Chinese companies who, together, make the territory such a unique business experience. These companies are almost always founded by a Chinese family and then remain under the control of that family – even if the company is eventually floated. As family-run enterprises, decision-making tends to be highly centralised with the head of the family making all but the most minor of decisions. This allows these organisations to change policy quickly, as and when required, (in contrast to certain other Asian cultures where decision-making is notoriously slow.) Such centralisation of power can also have its downsides. It is very common, for example, that non-family members, who see no chance of ever reaching the top, leave the organisation to set up rival companies.

Author

This country-specific business culture profile was written by Keith Warburton who is the founder of the cultural awareness training consultancy Global Business Culture. 

Global Business culture is a leading training provider in the fields of cross-cultural communication and global virtual team working.  We provide training to global corporations in live classroom-based formats, through webinars and also through our cultural awareness digital learning hub, Global Business Compass.

This World Business Culture profile is designed as an introduction to business culture in Hong Kong only and a more detailed understanding needs a more in-depth exploration which we can provide through our training and consultancy services.