Cultural Attuning: How the Big Four Manage State-Firm Relationships in China

This paper examines how the Big Four accounting firms respond to the political and cultural demands of the Chinese state in an increasingly complex and ideologically driven environment. Moving beyond traditional frameworks that emphasize state ownership and political connections, this study proposes a cultural perspective to analyze state-firm relationships. Extending Giorgi et al. (2015) integrative framework of culture to the analysis of state-firm relationships, this paper examines how the state acts as a cultural force, exerting both physical and symbolic powers over firms, and how firms navigate and respond to this influence. Drawing on 94 interviews with Big Four partners, high-level state regulators and key actors in the Chinese accounting sector, we introduce the concept of cultural attuning, a process through which firms interpret the state's cultural expectations and strategically position themselves in relation to these influences. Through three key activities—sensitizing, mentalizing, and posturing—we offer a nuanced and comprehensive understanding of state-firm relationships as dynamic and culturally constructed.