Dec 03 2015

Reactions to ASAE Foundation Global Management Series – Special Focus on China

China 4 innovations


Recently, McKinsey issued a report on China’s potential for innovation versus where they are today. China’s need to rely less on low cost manufacturing and more on innovation-based economic strategies will need to contribute up to half of its GDP growth by 2025 ( $3 trillion – $5 trillion annually).

To get there China must improve its performance across the four “archetypes” of innovation where China’s record is not always strong:  customer-centricity, efficiency-driven, engineering and science-based innovations.  It is the latter two that China lags behind and why associations offer good channels to collaborate.

  • China’s large and dynamic market gives it an edge in customer-focused innovation. Chinese
    innovators use China’s massive consumer market to commercialize new ideas quickly. Chinese consumers enable innovation by accepting early iterations of products and services and providing feedback for rapid refinement.
  • China’s manufacturing ecosystem enables efficiency-driven China radar graphinnovation. China has the
    world’s most extensive manufacturing ecosystem, with more than five times the supplier base of
    Japan, 150 million manufacturing workers, and modern infrastructure.
  • Accelerated learning is essential for engineering-based innovation. Purchasing bygovernment-owned enterprises, facilitation of technology transfers, and introduction of market
    discipline are accelerating learning needed for engineering-based innovation.
  • Chinese companies are trying to catch up in science-based innovation using novel
    approaches. The government push to raise R&D spending, train scientists, and file for patents has
    yet to give China a lead in science-based innovation.

 ASAE Study Shows US Associations Must Be More Deliberate & Engaged in China

According to our first year research study with ASAE Foundation “Achieving Global Growth,” 57 percent of respondent associations growing internationally and 47 percent of those who experienced declining or flat membership and product sales internationally identified China as one of the top markets for expected growth in the next three years.

Yet, year two study found that many associations weren’t fully committing themselves to China.  They didn’t have a formal strategy adopted.  They weren’t conducting local marketing/communication and social media in China to activate demand properly.  And they weren’t happy with the partners they chose.

Insights from a China Insider

We recently sat down with Florence Chua, senior director of association management and consulting for MCI China.   In this short two part podcast interview she offers insights into what associations should understand about making commitments and engaging for growth in China.


About the author

Peter Turner

As MCI's Senior Advisor, Global Development Strategy, I help associations build and execute global growth strategies. Over the past 30 years I have served three associations (ASAE, MPI and IEEE Computer Society) as a leader of business, product and partnership development.

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