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VOL. 8, ISSUE 1 (2026)
Acer's "Kingly Way" and "Hegemon's Way": A case study of Chinese management style
Authors
Dr. Lung-Tan Lu
Abstract
The case study
investigates Stan Shih's management style during his era as Acer Group founder
to show how he combined Eastern and Western business styles for leading this
company through worldwide PC market challenges. This case starts by explaining
Acer's development through its start and international brand expansion before
it encountered issues with its massive organizational structure. The business
underwent a critical transformation when Mr. Shih developed his "smile
curve" theory which showed the most valuable parts of the industry value
chain. He separated the business in 2001 to establish an R&D center which
focused on developing new products for brand expansion. This case shows how
Shih used Confucian "Kingly Way" principles to run his business
operations through a system which bases its leadership on the belief that
humans possess natural goodness and employs profit-sharing and employee bonus
systems to build a family-like workplace environment. Moreover, it also
illustrates how he applied "Hegemon's Way" (Legalist) authority and
execution during organizational shifts to find equilibrium between "Kingly
Way" and "Hegemon's Way" while practicing Taoist principles of
natural progression. This case study provides some questions, which help
readers evaluate Chinese Management Style obstacles and benefits when dealing
with current capitalist systems and worldwide business operations and modern
technological advances.
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Pages:59-68
How to cite this article:
Dr. Lung-Tan Lu "Acer's "Kingly Way" and "Hegemon's Way": A case study of Chinese management style". International Journal of Management and Economics, Vol 8, Issue 1, 2026, Pages 59-68
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