Corporate Value Transfer in China : Cultural Challenges and Opportunities arising when using a Corporate Training Program: An exploratory case study of H&M

Abstract: Problem statement The Western retailer H&M is one of many multinational retailers presently preceding a rapid expansion, followed by an extensive recruitment of new employees in China. H&M works extensively with the transfer of corporate values, mentioned as “the H&M spirit”, to its foreign subsidiary in China through a Corporate Training Program. Scholars have recently highlighted the Corporate Value Transfer process, however the understanding of this process within the International Business literature today is limited. Research purpose The purpose of this research is to create a deeper understanding of the Corporate Value Transfer process in an emerging market context. This research therefore aims to investigate how H&M transfers their corporate values to new employees in China, by focusing on the cultural challenges and opportunities arising during this process within a Corporate Training Program. Methodology The methodology being used was qualitative with an abductive approach, focused on performing a single case study. Empirical data was gathered through 19 semi- structured interviews with managers at H&M ́s Human Resource offices for the Southern China region in Shanghai and Hangzhou. Results and contributions The Corporate Value Transfer process, to new Chinese employees, was summarized in three phases. These three phases, and different cultural challenges and opportunities within them, were conceptualized. This conceptualization contributes in terms of a theoretical foundation within the International Business literature and illustrates how a Corporate Value Transfer process in China can be viewed upon.