Management Innovation Made in China: Haier’s Rendanheyi

Jedrzej George Frynas, Michael J. Mol, Kamel Mellahi

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Abstract

Emerging market companies create new management practices for an environment characterized by increased volatility, uncertainty, complexity, and ambiguity (VUCA). This article shows how Haier developed a platform of management practices called Rendanheyi to transform itself from a conventional hierarchical manufacturing firm to a highly responsive online-based entrepreneurial company. It demonstrates how the organizational, competitive, institutional, and technological contexts mattered for the development of Rendanheyi, showing how context-dependent management innovations are created to allow emerging market firms such as Haier to deal with a high VUCA world and creating an extended process model of management innovation that managers can readily apply.
Original languageEnglish
JournalCalifornia Management Review
Volume61
Issue number1
Pages (from-to)71-93
Number of pages23
ISSN0008-1256
DOIs
Publication statusPublished - Nov 2018

Keywords

  • Business history
  • Case study
  • China
  • Corporate strategy
  • Emerging markets
  • Innovation
  • Innovation management
  • Manufacturing
  • Organizational structure

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