Closing cultural distance: the cultural adaptability in Chinese-related firms in Thailand

Purpose The aim of this paper is to investigate the effect of cultural values and cultural adaptability of Chinese expatriates and Thais on organization performance. Design/methodology/approach The designed perceptual scale research instrument adapted from Schwartz’s instrument is used to conduct a questionnaire survey in which 180 sample Chinese expatriates and Thai coworkers participated. Descriptive statistics, factor analysis, and regression analysis were used to analyze the data obtained. Findings The authors found that cultural value variables that are significantly related to productivity are social order, openness, and tradition; while cultural adaptability variables found significantly related to productivity are open-mindedness and judgment. When organization performance is focused on innovation, cultural value variables that are found statistically significant are openness and tradition; while cultural adaptability variables that are significant include open-mindedness and personal values. Finally, when customer satisfaction is the organization performance focus, only one cultural value variable is found to be statistically significant, that is, tradition; while cultural adaptability variables that are significant are personal values and judgment. Practical implications The results of this study can be used to design new approaches and HRM practices (i.e. recruitment and training) to enhance the corporate culture and cooperation among Chinese expatriates and Thai coworkers to maximize organization performance in a new competitive environment. Originality/value This study contributes to the literature on cultural management and cultural adaptability. It empirically investigates the perception of both Chinese and Thais on cultural values influencing the performance of multinational companies. Further, the modified Schwartz’s values survey instrument used in a Thai business operating context makes it a very rare empirical study that provides insight into these issues.