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11/09/01

Establishing an “ECL” Culture in China: Organisational

Difference or National Difference?

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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

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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.

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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...