Asian Business Essay! (Looking for a professional business major writer ONLY)
THEMES
“Asian business success” today is part of
a political, economic and cultural response to historical trauma
Asian political-economic systems challenge “the standard model”
Challenges and questions:
Rise or Rebirth? (Old traditions, New States)
“Clash of civilizations”?
Globalization?
Role of the state?
Development and democracy?
Democratic peace?
“Asian values”?
Problems of history
“Scratches on our minds”
Nationalism
The colonial question
CONSIDER
CULTURAL “RENAISSANCE”
UP FROM POVERTY
RECOVERY FROM WAR
The “Culture Argument”
The “Asian Model Argument”
The “Political Argument”
Legitimacy though economics/Nationalism
The “Globalization/American Peace Argument”
The “People Argument”
Leadership
Challenges
Post-WWII Identity
Reform
FDI
“Ersatz Capitalism”
Globalization
Competing in the global marketplace
OEM or Branding?
BUSINESS SYSTEMS
Conditioned by history and culture
Linked elements
* What are the authoritative institutions?
Law/Party/Custom
*How is the system coordinated?
Ownership/Networks/Management Style
Authority & Control
*How is the system organized?
Structure
Strategic Orientation
Market Relations
*What are the resources?
Capital/Human Resources/Social Capital
Personnel Practices
Why should we care about “business systems”?
All businesses (economies) are systems
Systems key characteristic: change one part, change all other parts (problem of unintended consequences)
2.Appreciating the business system of your target market/potential partner lets you anticipate issues, plan better.
“Multiplexity” “Hierarchy”
“Social Capital” “Informality”
“Culture”
One typology:
Post-Socialist economies
Emerging SEA economies
Advanced City economies
Advanced Northeast Asian economies
(including Japan)
Significant differences?
Using the Redding/Witt Framework,
define US business system
Education/Skills Formation
Employment Relations
Financial System
Interfirm Relations
Internal Structure
Ownership/Corporate Governance
Social Capital
Role of the State
China HongKong India Indonesia Japan
BUSINESS SYSTEMS
“GREATER CHINA”
PRC
SOES/Private/”Local”
China’s “Golden Rule” (MG)
Taiwan
Entrepreneurial/Hi-Tech/SMEs Family
Hong Kong
The “Hongs”/Family/Finance
Overseas Chinese (Huaqiao 华侨)
Family
“Bamboo Network”
Economist, “Capitalism Confined” 3 Sep 11
“Multiplexity”?
JAPAN
Keiretsu & Sosha (Kaisha)
Employment
“Patient capital”
Trust
SOUTH KOREA
Chaebol
Out of the 5 Year Plan
SOUTHEAST ASIA
Highly varied
INDO-CHINA
Thailand
Vietnam
BUSINESS SYSTEMS (Another look)
| CULTURE | COORDINATION | INSTITUTION | |
| JAPAN | Employment Group norms Nationalism | Keiretsu Complex govt/biz coordination Consensus | “Patient capital” Strong social capital High quality HR |
| CHINA (PRC) | Confucianist Hierarchy (duties, low trust) “Communist” values | “Socialist” market econ. SOEs, “families”, private, local businesses Complex (State, JVs, WOFEs, “local”) | “Inefficient capital” (NPLs) Huge HR base Weak societal links Strong clan links |
| OVERSEAS CHINA | Complex identities Confucianist “China Circle” | Bamboo network Family Clan Region | SMEs Family firm Personal networking Guanxi Flexible politics |
| KOREA | Confucianist Nationalism Technology | State plan Centralized authoritarian mgt. | Strong state Respect for law |
| SOUTHEAST ASIA | Highly varied (religion, ethnicity) Colonial heritage | FDI Emerging markets Importance of Overseas Chinese | “Crony capitalism” Low levels of social capital |
Leadership – One of the keys
Many types , but some shared characteristics
“Confucian”
Combination of authoritative/benevolent/collective/moral
Long Term…seeing relationships, “over the horizon”
Moral
Frugal, CSR
Employee-centered, firm as family
Relationships & Networks (guanxi 关系）
Work ethic
Pressing the buttons
China: $ (instrumentalism, exploitation)
Japan: encouragement (gambate)
Korea: stability
LEADERSHIP ORIENTATIONS IN ASIA
McGREGOR: CHINA AS A START-UP AND A TURN-AROUND
CAN APPLY TO ASIA AS A WHOLE
URGENCY & VISION: THE NATION-FAMILY
REFORMS: “FEELING THE STONES”
CONTROL AND ROUGH JUSTICE
(RULE BY LAW, NOT RULE OF LAW)
ELITISM/INEQUALITY
OTHER APPROACHES TO BUSINESS SYSTEMS:
“EASE”
“GCR”
THE CHALLENGE IS TO SEE HOW THEY ALL FIT
“EASE OF DOING BUSINESS”
STARTING A BUSINESS
CONSTRUCTION PERMITS
ELECTRICITY
REGISTERING PROPERTY
GETTING CREDIT
PROTECTING INVESTORS
PAYING TAXES
CROSS-BORDER TRADING
ENFORCING CONTRACTS
RESOLVING INSOLVENCY
ALL OF THESE DEAL WITH “RULE OF LAW” MATTERS;
“INSTITUTIONAL” ISSUES IN THE GCR FRAMEWORK
GLOBAL COMPETITIVENESS REPORT
A systematic approach to growth/”competitiveness”
From factor driven (basics) Teleological?
“Institutions”
Infrastructure Compare with Rostow?
Macro-econ. Stability
Health/Primary education (UNDP- HDI)
To efficiency driven (production)
Higher ed
”Goods market”
Labor market
Finance
Tech readiness/
Market size
To innovation driven
Management
Innovation support