ECL 1 
HKU155
rP os t
11/09/01
Establishing an “ECL” Culture in China: Organisational
Difference or National Difference?
op yo In the 1980s to 1990s, China had emerged as one of the most promising host countries for foreign direct investments in South-east Asia. Multinationals were attracted by the size and diversity of the marketplace, and were eager to build a successful and appropriate organisational infrastructure that helped to capture business opportunities. Electronic
Communications Ltd (“ECL”) was no exception. The company had decided to make China its second home and to seek common prosperity with Chinese people. ECL knew that there were major gains to be made, but there were also risks and challenges. One of these was the management of cultural differences. An essential question facing the management was whether they should adapt ECL’s management practices to the Chinese culture, or whether they should instead implement ECL’s global management policies in China.
ECL in China
tC
ECL was a global leader in providing integrated communications solutions and embedded electronic solutions. Established in 1928 by Patrick Wright, ECL (formerly known as the
Wright Manufacturing Corporation) first produced battery eliminators in Chicago. In 1930, the company produced a new product, the first practical and affordable auto radio. Auto radios were not available from automobile manufacturers, so the Wright auto radio was sold and installed as an accessory by independent automotive distributors and dealers. Patrick
Wright coined the name “ECL” for the company's new products. In 1947, the Company’s name was changed to ECL.
No
ECL saw a rapid development in the 1940s and 1950s. By the time of Patrick Wright’s death in 1959, ECL was a leader in military, space and commercial communications, and had built its first semiconductor production facility. Under the leadership of Patrick’s son, Robert
Wright, ECL began to explore the international market in the 1960s, and had
rP os t
11/09/01
Establishing an “ECL” Culture in China: Organisational
Difference or National Difference?
op yo In the 1980s to 1990s, China had emerged as one of the most promising host countries for foreign direct investments in South-east Asia. Multinationals were attracted by the size and diversity of the marketplace, and were eager to build a successful and appropriate organisational infrastructure that helped to capture business opportunities. Electronic
Communications Ltd (“ECL”) was no exception. The company had decided to make China its second home and to seek common prosperity with Chinese people. ECL knew that there were major gains to be made, but there were also risks and challenges. One of these was the management of cultural differences. An essential question facing the management was whether they should adapt ECL’s management practices to the Chinese culture, or whether they should instead implement ECL’s global management policies in China.
ECL in China
tC
ECL was a global leader in providing integrated communications solutions and embedded electronic solutions. Established in 1928 by Patrick Wright, ECL (formerly known as the
Wright Manufacturing Corporation) first produced battery eliminators in Chicago. In 1930, the company produced a new product, the first practical and affordable auto radio. Auto radios were not available from automobile manufacturers, so the Wright auto radio was sold and installed as an accessory by independent automotive distributors and dealers. Patrick
Wright coined the name “ECL” for the company's new products. In 1947, the Company’s name was changed to ECL.
No
ECL saw a rapid development in the 1940s and 1950s. By the time of Patrick Wright’s death in 1959, ECL was a leader in military, space and commercial communications, and had built its first semiconductor production facility. Under the leadership of Patrick’s son, Robert
Wright, ECL began to explore the international market in the 1960s, and had