RenDanHeYi: integrating employees and customers in corporate governance

Authors

  • Cherry Vu

DOI:

https://doi.org/10.59394/JSM.144

Keywords:

RenDanHeYi model, corporate governance, Haier Group, micro-enterprises, employee empowerment, organizational innovation

Abstract

The article analyzes the RenDanHeYi management model initiated by the Haier Group in China, highlighting the philosophy of integrating employees (Ren) and customer needs (Dan) into a unified whole (HeYi). Through the transformation from a traditional management structure to an ecosystem of micro-enterprises, Haier has developed a flexible, transparent, and customer-centered organizational model. Under this model, each employee becomes an “entrepreneur within the enterprise,” empowered with autonomy and held directly accountable for performance outcomes. The RenDanHeYi model has not only enabled Haier to achieve remarkable results in innovation speed, product quality, and customer satisfaction but has also inspired many organizations worldwide to redesign governance systems toward greater empowerment, transparency, and adaptability in the digital era.

Author Biography

Cherry Vu

Dr. Cherry Vu

References

Appio, F. P., Frattini, F., Petruzzelli, A. M., & Neirotti, P. (2021). Digital transformation and innovation management: A synthesis of existing research and an agenda for future studies. Journal of Product Innovation Management, 38(1), 4-20. Retrieved from https://doi.org/10.1111/jpim.12562

Frynas, J. G., Mol, M. J., & Mellahi, K. (2018). Management innovation made in China: Haier’s Rendanheyi. California Management Review, 61(1), 71-93.

Hamel, G., & Zanini, M. (2020). Humanocracy: Creating organizations as amazing as the people inside them. Harvard Business Review Press.

Ritala, P., Zhang, R., & Hou, J. (2023). The evolution of the Rendanheyi model: From internal entrepreneurship to ecosystem orchestration. California Management Review, 65(3), 27-49.

Teece, D. J. (2018). Business models and dynamic capabilities. Long Range Planning, 51(1), 40-49. Retrieved from https://doi.org/10.1016/j.lrp.2017.06.007

Zhang, R. (2019). The power of one: How Haier achieves zero distance to customers. China Machine Press.

Zhang, R., & Ritala, P. (2023). Management transformation and the future of adaptive organizations: Insights from Haier’s Rendanheyi model. California Management Review, 65(3), 5-26.

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Published

26-06-2026

How to Cite

Cherry Vu. (2026). RenDanHeYi: integrating employees and customers in corporate governance. Journal of State Management , 33(20), 66–78. https://doi.org/10.59394/JSM.144

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