Background: Multinational corporations and cross-cultural challenges have been extensively studied from various perspectives. As the number of Chinese multinational enterprises (MNEs) operating in Europe continues to grow, it becomes increasingly important to understand how these Chinese MNEs influence their western subsidiaries and the challenges associated with it. This thesis explores these challenges and the cross-cultural impact they have in a project setting.

Purpose: The primary purpose of this thesis is to identify success factors to improve cross-cultural project management collaboration within a Chinese-Swedish setting. To achieve this, the thesis examines the cultural differences, assesses their impact on Chinese-Swedish collaboration, and identifies potential solutions to address these challenges.

Method: The thesis employs an explorative qualitative approach based on a single case study of a Chinese original equipment manufacturer (OEM), investigating the dynamics between a Swedish subsidiary and its Chinese owner. Data was collected through four semi-structured interviews, primarily focusing on the Chinese perspective of collaboration. The data was analyzed using a hybrid thematic analysismethod.

Results and analysis: The findings illustrate how national cultural differences influence decision making, communication and project management which shapes the perception on authority, collaboration, and project teamwork. These differences lead to inefficiencies in collaboration, project alignment, and timing. Identified solutions to these challenges include early project alignment, consistent communication, clear decision-making, and diligent follow-through to improve collaboration and trust. 

Conclusions: Enhanced collaboration and communication are key elements for success in a cross-cultural business setting. By understanding the needs of a cross-cultural organization and effectively adapting to differences, companies can not only reduce friction in collaboration but also unlock the full potential of a diverse team working toward a common goal.

Recommendations for future research: How can an Eastern perspective contribute to established Western project management paradigms and what implications would this have for international project management? Can cross-cultural collaboration be improved by standardization? How does the cross-cultural organizational setup impact the relative significance of different cultural dimensions?