CEO of the above-mentioned affiliated telecom company of China
Network Communications Corporation had adopted a unique way to
handle his competitors. The Chinese government broke the monopoly
of the original China Telecom^1 when it allowed more companies
such as China Unicom, China Railway Communication Corporation,
and China Network Communications Corporation to provide telecom-
munications services. China Telecom tried to maintain its market share
by preventing these new companies from growing in the telecommuni-
cations service market. These companies considered their competitors
as enemies and fought viciously with each other. The consequence
of such commercial battles was that all companies lost profits.
The CEO of the affiliated telecom company is a strong believer of
‘‘harmony bringing wealth’’ and put this notion into his management
practices. During traditional Chinese holidays, he visited the head
of the biggest competitor to his company, the affiliated company of
China Unicom. His actions led to positive competition in the local
telecommunications market and his company got a much greater
local market share than the average market share of other branch
companies of China Netcom. The harmony principle also guided the
action of this general manager in his dealings with local government
when his company aided the government by sponsoring welfare
activities and helped solve other problems.
The Golden Mean (Acting in the middle way)
(zhong yong zhi dao)
During the interviews, eleven people emphasized the philosophy of
doing things in the middle way, which isthe Golden Meanprinciple.
The words they used included ‘‘keeping balance in management’’ and
‘‘going beyond is as wrong as falling short.’’
Three meanings can be noted in the way the interviewees talked
about the Golden Mean. First, it means that a leader should do all
things in an appropriate manner. These interviewees believed that
there was a boundary for everything and going to extremes was
strongly opposed. Second, one should weigh the consequences of the
extreme positions in an argument and identify the right solution from
competing or conflicting perspectives. Third, one should be flexible
in managerial activities. Leaders need to take the opportunity at the
right time and make necessary adjustments according to the situation.
Keeping flexibility is the essence of acting in the middle way.
Chinese traditions and Western theories 249