Case | HBS Case Collection | October 2010

CDG: Managing in China's Economic Transformation

by Roy Y.J. Chua, Shaohui Chen and Lisa Kwan

Abstract

China Data Group (CDG) is a leading business processes outsourcing company based in Beijing, China. Roc Yang, chairman of CDG, had to confront a dilemma when he discovered that one of his senior managers gave a gift to a potential client in an effort to win a large business deal. Although this practice was pervasive in the China business context characterized by heavy reliance on personal relationships or guanxi, it went against the founding principles of CDG—professionalism and service quality. Yang had to decide where to draw the line between adherence to principles of professionalism and local norms in a country caught in the midst of rapid economic transformation.

Keywords: Cross-Cultural and Cross-Border Issues; Management Practices and Processes; Emerging Markets; Negotiation Deal; Relationships; Networks; Societal Protocols; China;

Citation:

Chua, Roy Y.J., Shaohui Chen, and Lisa Kwan. "CDG: Managing in China's Economic Transformation." Harvard Business School Case 411-067, October 2010.