Global Business Cultural Analysis of Asia
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Global Business Cultural Analysis of Asia
Introduction
There are important elements that a country must consider when planning to start business in
other countries. It is good to understand the way that those other countries conduct their
businesses and what factors shape business in that country to plan accordingly (Watson et al.,
2002). This research paper will therefore conduct a comprehensive global business cultural
analysis of Asia. The main aim of the research is to find out the complexities and factors that
United States needs to consider before deciding to set up businesses in Asia. The research will
explore and outline the major dimensions and elements of Asian culture, how the locals in Asia
integrate those elements and dimensions in conducting businesses, how those elements and
dimensions compare with the united states’ business and culture, and outline the implications
for united states’ businesses that would like to set up businesses in Asia.
Research questions
• What are the major elements and dimensions of culture in Asia?
• How are these elements and dimensions integrated by locals conducting businesses in
Asia?
• How do both of the above items compare with United States’ culture and business?
• What are the implications for US businesses that wish to conduct business in Asia?
Research question 1: what are the major elements and dimensions of culture in Asia?
Communication
Communication is the most important aspect of interaction. For two or more individuals or
groups to interact with one another, there must be communication among them. The question of
how well they interact with each other depends on how well they can understand one another
through communication. Asian cultures normally practice high contest communication by mostly
using non-verbal elements such as voice intonation, body language, and a person’s status
(Jogulu & Ferkins, 20212). For example, according to Baldwin (2019), when greeting another
person, Asians do so with a slight bow, and with their palms held together in a prayer-like
position.
Asians also do not have eye to eye contact with strangers and also with other Asians. According
to them, it is shameful and rude to have an eye to eye contact with another person. People who
move to Asia maybe for studies or business activities or for any other may find it difficult
adapting to these non-verbal communication styles of Asians. In addition, Asians put high value
in emotional restraint. They believe that this shows more politeness (Baldwin, 2017).
When it comes to verbal communication, Asians use their native languages as their official
languages, although English is now widespread as an international language. The major
language families in Asia include; Altaic, Austroasiatic, Austronesia, Caucasian, Dravidian, Indo-
European, Afroasiatic, Siberian, and Kra-Dai. Most of the Asian countries use an indirect style of
communication. For example, it is hard for Asians to use the word “no” because according to
them, telling another person no causes embarrassment of the loss of face. For that reason,
instead of saying no, they prefer to use phrases like “I wish I could do it, but it seems difficult” or
“yes, probably” (Harooni & Pourdana, 2017). Generally, Asians try as much as possible to avoid
disrespect, embarrassment, disagreement, anger or even frustration. Therefore, when faced
with such circumstances, they prefer to give an indirect or a reluctant smile.
Religion
Asia is a region which practices many religions like Christianity, Buddhism, Confucianism, Islam,
Judaism, Hinduism, Jainism, Taoism, Shintoism, Zoroastrianism, and Sikhism. In other words,
Asians practice all major forms of religious traditions. However, Hinduism and Islam are the
most practiced religions in Asia (Suchday et al., 2018). The Hindu culture advocates for respect
and love for others. In this case, respecting elders forms the foundation of Hindu culture.
It can be said that Hinduism is more than just religion because it is also a way of life for many
people around the globe. According to Liu (2020), religion plays a very important role in the
culture of hospitality, love, and respect in Asia. It acknowledges seniority. Some of the practices
that are done to shoe respect for seniors include; never sitting down while elders are standing,
serving their food first, always sitting to the left of elders, not challenging or arguing with elders,
and bringing gifts to elders during special occasions. Hindus also are very careful with how they
address one another (Suchday et al., 2018).
To show respect to the elderly, they are never addressed by their real names. A young person
cannot address an older person by their real names. Wives also, cannot address their husbands
by their given names; instead they refer to them as “my husband”. This is to show respect to
them. Personal space is also an important aspect in Hindu culture (Borup & Fibiger, 2019).
Displaying of affection in public or touching in public is termed as religiously disrespectful even
to people who are married. Also, people of opposite sex should not hold hands in public. It is
also important to note that Hindus do not eat non-vegetarian food on specific days of the week
and on other specials ceremonies.
Ethics
Ethics are a set of moral principles that governs people’s behaviors and how they conduct
activities. Ethics help to define the concepts of right and wrong, good and evil, justice and crime,
and virtue or vice (Adikaram, 2018). In this case, the main focus is on the ethics related to
business activities. Asians are very intentional about honesty. Telling the truth is considered a
life virtue. Telling lies shows lack of integrity and disrespect. As mentioned before, Asians
culture values respect for of other people. In everything that a person does, he or she must
always respect others.
Loyalty is also another ethical issue in Asia. Asians are very loyal to one another and they carry
out their activities with fairness. Another ethical issue in Asia is concern for others. Asians are
so caring and one person’s problem is a problem for others. In other words, Asians always want
to ensure that everyone is comfortable and happy. They share resources equally and they have
love for each other.
`Values and attitudes
Values are things that help people to determine whether what they think is right, appropriate,
what is desirable, and what is important. Each and every society has a set of values that its
individuals attach strong sentiments to. It is through those values and attitudes that people
behave the way they do and societies function like they do. Asian societies such as Honk Kong,
Japan, Taiwan, and Singapore are influenced to some capacity by the values of Confucian
philosophy. According to Confucian, wisdom, benevolence, obedience, and propriety are norms
of human beings (Cheng et all., 2020).
The central institution in Asian culture is family. Family acts as a medium for moral training and
also as the bridge between the society and individuals. Asians express love for one’s family and
parents. Children must serve their parents, obey and support them. Asians also advocate for
double standards for women and men. Asians do not express their emotions in the outside but
instead, emotions are internalized. Dress code is also important in Asia. Women are not
supposed to expose their body in short and exposing attire.
Manners
Manners can be defined as a person’s outward bearing or a way in which a person behaves
towards others. Every society has what it terms as good and bad manners or else behaviors.
The following are behaviors that Asians consider as good manners;
• Keeping hands below the neck – in most parts of Asia, it is considered very rude to
touch a person’s head. According to Buddhism, the head is sacred part of the body because it is
the highest. The feet on the other hand are considered as dirty because they are the lowest part
of the body (Gobble, 2018). Therefore, pointing someone using the feet or showing the feet to
someone is also offensive.
• Eat with your hands – in many Asian countries like India, Malaysia, Indonesia,
Bangladesh, Nepal, and all other Muslim countries, it is polite to eat with the hands. Moreover, it
is polite to stick to the right hand while eating. A person should never eat using his or her left
hand. It also considered rude to pass something to someone using the left hand.
• Hold your liquor – normally in many cultures, it is impolite to reject offered food. In Asia,
it is also rude to turn down a toast because when Asians offer a person a shot of their beer, it is
a sign of friendship (Gobble, 2018).
• Don’t tip – in Asian countries like Japan, it is offensive to leave a tip. Japanese workers
do not take tips positively and instead they feel embarrassed about it. They believe that they are
paid to do what they do and do not need incentives to do what is required of them.
• Prioritize showing respect – respect is a very important cultural aspect in Asia. It is bad
manners to disrespect other people. It is wrong to do something that could embarrass another
person or to cause another person to put on a long face. They are very careful about the words
they use to pass information. Opinions of people of high status in the society are never
supposed to be rejected, and when they have to be opposed, it is supposed to be done in a way
that they do not feel belittled, disrespected or embarrassed.
• Do not chew gum – chewing gum is mostly seen as being rude especially when
someone is talking to you. In Singapore, it is illegal to chew gum in public and has been so
since 1992. Spitting out gums in public places could attract a fine of five hundred dollars in
Singapore.
Customs
A custom can be defined as a traditional and highly accepted way of behaving or doing things
that are specific to a certain place, time or society. In Asian business set up, it is not in order to
give gifts. Giving gifts is considered as bribery which is illegal in most Asian countries. Other
customs in Asia include; bringing hands together in a praying pose and bowing slightly while
greeting someone or saying goodbye, bowing to show respect, taking off shoes while entering
temples and homes to show courtesy and cleanliness, minding the head and feet because the
two communicate differently as mentioned earlier, extreme courtesy and politeness, slurping is
good, sharing of food in one big table, forbids public display of affection and holding hands by
people of the opposite sex, tipping is offensive, squat toilets are more preferred, and new year
traditions (Baldwin, 2017).
Building relationships is crucial in business in Asia. Before any business can be conducted, it is
important to establish a personal relationship with the other party. This involves getting to know
each other on a personal level and showing interest in their culture and background.
In many Asian cultures, saving face is important. This means avoiding causing embarrassment
or humiliation to others. It is important to avoid criticizing others in public, and to give feedback
in a tactful and respectful manner.
Many Asian cultures have hierarchical structures, and it is important to show respect to those in
positions of authority. This includes using proper titles and honorifics when addressing them,
and deferring to their opinions.
Social structures and organizations
Social structures and organizations can be defined as the patterned social arrangements within
a society and they emerge from the actions of individuals and they are also the determinants of
the actions of individuals in that particular society. Asia has two main social structures. They are
south Asia and Southeast Asia. The social structures of some of the Asian societies are defined
by kinship, caste, and modernization (Yeung et al., 2018). South Asia comprises of countries of
Pakistan, India, Ceylon, and other small states in Himalayas. Of all the south Asian counties,
India is the largest with the highest population. Habitats in this area range from tropical rain
forests from south and east to perennial snows in the northern mountains and from deserts in
the northwest areas to areas that receive heaviest rainfall in the world.
When it comes to culture, there are those people who live in the remote areas and still do
practice hunting and gatherings, still walk naked, and far from civilization. Other parts are
occupied by some of the world’s most ancient civilizations. Islam, Buddhism, and Hinduism are
also represented in the area (Vyas &Spears, 2018).
Southeast Asia on the other hand comprises of Vietnam, Burma, Laos, Thailand, Cambodia, the
Malayan Peninsula, the Philippines, and the Indonesian archipelago. Indonesia has the highest
population in Southeast Asia. Population distribution in Southeast Asia is uneven due to
differences in soil fertility in different parts of the area and cultural factors. The most important
factors that have shaped Southeast Asia are the existence of inner contradictions within the
patrimonial bureaucratic structures and the situation of the region at a crossroad of cultural
currents (Muslim, 2017).
Education
Education is taken very seriously in Asia. It is seen as the only path to success. The education
system is made smooth so that every student is able to acquire education. Both teachers and
parents work in unison to ensure that students get the best education. The government makes
universities in that region affordable. Asian’s academic ascension if accelerated by competition,
parental demands, pride, and fear of failure (Watkins et ql., 2017). Another thing to note about
education in Asia is that, they are more focused in technical subjects. It has the capacity to
produce more scientists, mathematicians, and engineers. Asians have a culture of
competitiveness and not giving up or losing.
Business education programs in Asia range from traditional undergraduate and graduate
programs to specialized executive education programs for experienced professionals. These
programs cover a range of topics, including finance, marketing, entrepreneurship, and
management.
Given the diverse cultures and languages in Asia, many business education programs place an
emphasis on cross-cultural understanding and communication. This includes courses in
intercultural management and leadership, as well as opportunities for international study and
exchange programs.
Many business schools in Asia have achieved international recognition for the quality of their
programs, with a number of institutions ranking among the top business schools in the world.
This has helped to attract students from around the globe, creating a truly international learning
environment.
Research question 2; how are these elements and dimensions integrated by
locals conducting businesses in Asia?
Communication
A lot of communication takes place in business activities. For people to transact with one
another, they have to communicate. A seller has to communicate to customers to persuade
them to buy his or her goods or services. In business, communication plays a key role in the
process through which goods and services are created and exchanged. Asians in this case use
their native languages which are different and most times, people from different Asian countries
may not be able to understand one another. When people from different Asian countries are
engaged in a business, they always prefer to have a translator to help with communication.
English is the widespread business language but it is not fluently used in Asia.
Asians use indirect communication style in most of the times. Therefore, when conducting
businesses, they avoid using words that could embarrass or belittle others. For example, if a
potential customer is not interested in a certain good, he or she will use the words “I will buy
next time” instead of telling the seller that “I do not like your goods”. Asians get high scores
when it comes to power distance (Koo & Park, 2018). They pay attention to hierarchical order.
Employees have respect for people who are in higher positions or status in the organization. It is
disrespectful for a subordinate stuff to engage in an argument with a senior stuff.
Religion
Religion plays an important role in determining business practices in a region because the
production and sell of certain goods and services in the market depends on the faith proclaimed
(Henley, 2017). Asia is known for its diversity in religion. All religions are practiced in Asia and
therefore religion factors that affect businesses depend on where the business is located. For
example, Asians avoid having pork meals in their menus in restaurants located in areas where
large populations are Christians or Muslims or both (Abu-Alhaija et al., 2018).
Religion also helps Asians to run businesses without corruption because of faith. Faith leads
people to honesty and fairness. Through religion culture, Asians are able to build trust and
transparency with one another which enables them to run partnerships smoothly (Kurt et al.,
2020). Asians also respect people’s religious beliefs and feelings. Christians for examples are
not supposed to work on Sundays. Therefore, companies that have employed Christians have
to release them to go to their worshipping places or rest at their homes because the Bible
teaches Christians not to work on Sundays.
Ethics
Ethics in Asia include; honesty, concern for others, loyalty, and respect for others and most of
them are learned from their religions. Asians integrate the above set of ethics to conduct their
business in a more favorable and comfortable environment. Honestly and transparent is very
important in business partnerships. Owners of business ensure that they create trust among
themselves and avoid corruption.
Busari says that Asia employees have mastered the culture of respect for their fellow
employees and employers which helps to minimize conflicts in organizations and other forms of
businesses (Busari et al., 2019). Asians value interactions with other people and are mindful of
how they make other people feel around them. They show concern for others by ensuring that
they do not make the environment unbearable for other people. For examples, factories are not
located in areas where they can pollute the environment where people live in. instead, they are
located far away from people settlement areas as a way of caring about their health.
Values and attitudes
There are several Asian values and attitudes mentioned earlier. Asians therefore integrate these
values and attitudes in many different ways when conducting business in the region. Respect
and trust are important values in Asia. Therefore, business people look forward to earning
respect and trust in their business interactions. Asian is based on Confucianism. They
emphasize so much on family and respect for courtesy and humanity when doing business.
They develop close personal ties with business associates which help them succeed in their
businesses (Vuong et al., 2018).
Asians are also very keen about the statuses of particular individuals in the company and they
evaluate seriousness according to ranks. A delegation may not succeed if Asians know that it is
headed by a junior stuff. Appropriate attire is also considered in business dealings. Women are
supposed to dress in a fashionable way but at the same time avoid hemlines above the knee
and low necklines.
When negotiating about something, Asians do so using their indirect style of communication.
They avoid eye to eye contact with each other as is shows rudeness and also avoid using words
that can embarrass the other person or put a long face on them. For example, when talking to
someone whose status in the company is high, Asians avoid belittling words. When speaking to
each other about business dealings, what is not actually said in the conversation can be more
important than what was said. They use friendship, flattery or anger during negotiations.
Manners
Manners in this contest may actually refer to business etiquette in Asia. Asians are very much
concerned about when to shake hands or bow, when to offer business cares, when it is
appropriate to give gifts and so forth. When someone is applauded in a business meeting as a
welcoming sign, he or she smiles back and applauds in return to show politeness and humility.
When introducing a group of people – like stuff, to other people, Asians do so in line starting
with the most senior persons to show respect.
Business cards are treated with so much respect in Asia. When handing over a business card to
another person, they never slide them to the other person as if they are playing cards, they are
given directly (Bardakci et al., 2021). Also, it is rude to write on someone’s business card in their
presence. In addition, once handed over a business card, it is rude to place it in the back
pockets of a trouser.
Asians are also very careful about how they address other people. When they meet for the first
time, they always address each other using formal titles like “mayor” or “director” and not their
general salutation of “Mr.” or “miss”. Body language is very crucial in Asia. Using the left hand to
pass something to someone is offensive because the left hand is seen as unclean. Therefore,
even when selling something, they use the right hand to pass it to the buyer. They also avoid
pointing because it is considered extremely rude.
During meetings, Asians avoid showing the soles of their feet to others because it is offensive
especially among Buddhists who believe that the feet are the lowest parts of the body and are
considered to be dirty (Chodron, 2017). They also avoid touching heads because they are the
highest part of the body and are considered sacred.
When it comes to decision making in businesses, Asians value each and every individual’s
opinion. They avoid a situation whereby some people might feel left out or disrespected if
decisions are just made without their input and rules are made for them to follow. Therefore,
they prefer a step by step bottom up process of decision making or when conducting business
deals.
Customs
Gifting people may be considered as an act of appreciation or welcoming the other person.
However, in some businesses, Asians consider gifts as bribes and are avoided because bribery
is illegal (Maslov, 2018). They also avoid tipping of any kind because it is offensive in Asia.
Politeness and respect come first in any business set up in Asia. Therefore, all communication
aspects that show respect to one another apply in businesses as well. People bow to one
another as greetings, avoid eye to eye contact, avoid touching other people’s heads and
showing their feet, or using their fingers to point at things or people because that is considered
rude.
Squat toilets are preferred in Asia. Therefore, those who trade in real estate ensure that toilets
are built accordingly. Also, hotels and restaurants owners ensure that they have squat toilets for
their customers to make them comfortable.
Social structures and organizations
In south Asia, Bangladesh and India are the fastest growing regions in terms of business
(Shibasaki & Kawasaki, 2021). Business in south Asia is dominated by bureaucratic and
paternalistic organization culture. Organizations in this region follow a mechanistic
organizational structure. There is little or no flexibility when responding to customers. There has
always been a culture of strict rules, procedures, and regulations when handling customers in
south Asia. However, that culture is changing and a new trend has been taking place over the
recent years because of globalization process and international trade. The region is slowly
adjusting to a more customer-responsive and flexible organizational culture. The change is
however more visible in private sector organizations than in public organizations.
South Asians use authoritarian and persuasive leadership style whereby command, persuasion
and control are used when handling subordinates in organizations (Muralidharan & Pathak,
2017). Subordinate stuff is very loyal to their superiors and on the other hand, the superiors
show loyalty to their subordinates by ensuring that they enjoy job security.
As mentioned earlier, a family is a very important unit in Asian culture. When it comes to
business dealings, family members are given key roles and they work closely to one another
(Zellweger et al.,2019). They believe so much in collectivism and this is the root of nepotism in
that region. For example, mangers in this region are more likely to hire relatives, friends, or
relatives of people who have previously worked in the same company.
Hinduism and Islam are the dominant religions in south Asia especially India and Bangladesh.
The two religions shape people’s thoughts and behavior in that region. Hinduism classifies its
people in a caste system whilst Islam does not divide its people in social classes (Weightman,
2017). People carry their social statuses to the places of work and therefore it is important to
understand someone’s social status before mingling freely with them. Religion is a sensitive
aspect in south Asia. For that reason, people’s religious feelings and behaviors are highly
honored regardless of the positions they occupy in the organizations.
Emotional properties are too strong in south Asia. Emotion drives them more than logic. A lot of
logical business arguments could ruin a business relationship because fairness is negotiable in
decision making. A friend is more likely to receive favors because of emotional bond but not
logically. Emotion emerges from relationships and long business ties.
Southeast Asians also have the tradition of family-run businesses. Generally in Asia, women are
paid lower than men and are more likely to be paid below the minimum wage. However,
Southeast Asia leads in providing leadership opportunities for women and pay parity. Women
are well represented in schools, universities, and employment for them is available in all modern
sectors of the economy in all the Southeast Asian countries. In this region, businesses that help
in providing solutions for environment and social challenges are more successful because the
locals are willing to support their own. Although the region is diverse in terms of religions,
Buddhism is the dominant religion.
Education
Asians have a culture of competiveness that they learn from school and use the same culture in
business. They are always ready to do whatever it takes to succeed in what they do. They are
go getters in nature and that is why doing business with them needs enthusiasm. Education is
an important factor in economic success of any country. For that reason, Asia is one of the most
successful business destinations in the world. They apply the focus they have in education to
business.
Research question 3: how do both the above items compare with United States culture and
business?
Different counties have different cultures and those cultures shape how business in done. In this
case, the research seeks to find out how United States of America compares to Asia in terms of
culture and business. This information is very crucial especially for people Americans who
would like to start businesses in Asia. The best way to scale out the comparison between the
two region is by carrying out Hofstede analysis. Hofstede identifies five cultural dimensions
which include; power distance, individualism vs. collectivism, masculinity vs. femininity,
uncertainty avoidance, and long-term and short-term orientation.
Power distance
Hofstede defines power distance as the degree at which less powerful people in organizations
and institutions within a company accept the fact that power is distributed unequally. In such
countries, both leaders and followers endorse inequality among them. Asian countries have the
highest score on power distance according to Hofstede’s index. For example, Malaysia scores
104 on the index. This means that power gets in the way in Asia. People at the top in hierarchy
are more powerful than those at the bottom (Isa et al., 2019). People who hold bigger positions
in organizations have more power and have to be respected by the rest. This high power
distance does not however mean that the powerful people oppress or disrespect their followers.
Respect is crucial in Asia. On the other hand, the United States scores 40 out of the average
55 globally. This shows that the United States of America has a relatively low power distance
and hence power is equally distributed. Every person is entitled to a certain amount of power.
This includes all people in organizations, in the government, and also within families. This is
unlike in Asia where even in families; there are those with higher power than the rest. Men are
more powerful in families than women, especially between husbands and wives. Wives are
supposed to respect their husbands in Asia because they are the heads of the family.
Americans who go to Asia to conduct business or engage in other activities may find it difficult to
adapt to some of the Asian non-verbal communication styles. For example, in Asia, it is
considered rude to look someone directly in the eye. They do not engage in eye-to-eye contact
with each other. On the other hand, in America, maintaining eye contact means concentration
and active participation in the conversation. It is also a sign to confidence to look at someone
direct in the eye when having a physical communication
In Asian business cultures, power distance tends to be relatively high, meaning that there is a
significant power gap between superiors and subordinates. This can manifest in a number of
ways, such as strict hierarchical structures, deference to authority figures, and a preference for
indirect communication.
For example, in a typical Asian workplace, employees may not question the decisions of their
superiors and may be expected to follow orders without question. In meetings or negotiations,
there may be a tendency to avoid direct confrontation or criticism, and instead, use subtle or
indirect communication styles.
Individualism and collectivism
Hofstede defines individualism as a culture whereby people place greater importance in
attaining individual goals while collectivism as a culture whereby people are concerned about
attaining goals as a group and they place greater importance on the well-being of a group. Asia
scores high on collectivism and low on individualism. According to Han (2017), Asians have a
culture of handling things as a society instead of individuals. People like to come together and
work in unison to attain their goals as a group. As mentioned earlier, one of the values of Asians
is concern for others. For that reason, Asians are mindful of one another. They always want to
win as a group but not as individuals.
Companies in Asia also employ the culture of collectivism. Employees work together towards
achieving a common goal. They care more about the well-being of the company in general more
than their own needs. Employees work hard not to stand out from the rest but to help steer the
company towards success. They celebrate when their companies are doing well and are able to
achieve their goals but not individual wins while the company is failing.
Collectivism makes Asians to push more for the needs of the society than personal needs.
There is uniformity in dress code not only in schools but also in large companies. They believe
that uniforms put all people at the same level and enable them to work as a group other than
competitors. People who want to stand out as unique individuals are seen as lunatics, rebels,
and outliers. Uniqueness is never celebrated like in the United States. True heroes do not brag
and promoting oneself is considered disgraceful behavior. Independence is not a celebrated
aspect in Asia. Independent people are seen as alienating and selfish individuals.
On the hand, America scores high in individualism and low in collectivism. American culture is
one of the prominent individualistic cultures in the world. They place greater importance on
personal needs over those of the society or others (Bazzi et al., 2020). Independence in
American is celebrated because it is seen as a sin of strength and power. More so, being
dependent on others is seen as embarrassing or shameful in American culture. Americans
focus more on individual rights than society rights.
In this culture, people look forward to standing alone in a unique way so that they can be
celebrated as winners. The term good is given to those individuals who are self-reliant, strong,
independent, and assertive. According to this culture, people are expected to pull themselves up
when they face setbacks in life.
When it comes to work, Americans always want to win as individuals. Employees compete
against each even if they work in the same department, just to stand out alone as a winner over
others. They care more about their personal achievements and not those of the company. When
individuals in a company works overtime, he or she does so that he or she can meet goals, not
necessarily for the success of the company but for their personal goals like promotions and
salary increments.
Personal space is also of great importance in American culture. Swader says that, when in
gatherings, Americans maintain distance between themselves to keep personal space. They
maintained the largest social distance when talking to one another (Swader, 2019). Unlike the
Asians who prefer to share meals as groups in one big table, most Americans prefer to have
their meals alone and even when they are having meals with others; they do not share food
from the same plates. In addition, when Americans introduce themselves, they refer to
themselves as individuals and not as part of a group.
Masculinity and femininity
A high score in this dimension means that a country has a masculine culture where else a low
score means that that country has a culture of feminism. A society with masculine culture shows
that the society is pushed by success, achievement, and competition. A feminine society on the
hand means that the society cares more about their quality of life and care for others (Yue-han,
2020)
Asia can be defined as a masculine society. Different Asian countries score differently on
masculinity and feminism in Hofstede’s cultural dimensions index but generally Asia is a
masculine region. For example, in Hofstede’s cultural dimensions index, China scores 66 which
is a high score. Just like many other Asian countries, the society of China is driven by
achievement, competition and success (Yue-han, 2020). Winning in this region is measured by
success. This is a value that starts in schools as mentioned before.
Asians value education so much because to them it is the only path to success. Therefore, they
continue with the same ideologies throughout their organizational lives and all they look for is
success and never defeat. As a matter of fact, Chinese are capable of sacrificing their leisure
time and family time to work because they are hungry for success.
Many service providing businesses run until very late in the night just to continue providing
services to customers. Asians do not value leisure time and that is why most of them will spend
their leisure hors at work. More masculinity can be seen among Asian students. They care so
much about their grades and rankings in school because that is their determinant of success or
failure.
The United States of America also scores high in masculinity according to Hofstede’s cultural
dimensions index – it has a score of 62 (Yihan, 2017). Masculinity in the United States of
America can be seen in their typical daily behaviors. Every student in school wants to be the
best and emerge the winner over the rest. Masculinity in America goes hand in hand with their
individualistic traits.
According to Yihan (2017), the difference between Asia and America is that Americans shows
masculinity individually while Asians show their masculine drive as a group. Americans want to
be seen out there as successful so they work hard for it. They like to show off. Americans will
always talk about how successful they are in public. Americans want to continue holding the title
of the most superior in the world and for that reason they live to work. The government of
America is always looking for new and better ways of doing things so that they can be unique
and stand alone. Therefore, they are driven by the spirit of “the winner” which makes them work
hard in everything they do.
In many Asian countries, traditional gender roles have historically been very distinct, with men
occupying positions of power and women being expected to take on more supportive roles. This
has led to a masculine business culture in which assertiveness, competition, and domination are
valued. However, in recent years, there has been a shift towards a more inclusive and diverse
workplace, with women gaining more opportunities to take on leadership roles and make
decisions.
In some countries, such as Japan and South Korea, there is still a significant gender gap in the
workplace, with women often being paid less and having fewer opportunities for advancement.
However, there are also examples of successful female leaders in these countries, such as the
former Prime Minister of South Korea, Park Geun-hye, and the current President of Taiwan,
Tsai Ing-wen.
Uncertainty avoidance
Hofstede defines this dimension of culture as the way a society deals with the fact that tomorrow
or the future is unknown and can never be known whatsoever. The main aspect in this
dimension is the question that; does society try to control the future or just let it happen? There
is the anxiety that comes with the unknown. People get anxious when they think about the
future and begin to imagine what could happen, could anything happen in the future to harm
them or in their favor, and so many other concerns. For that reason, the degree at which
individuals who belong to a certain society feel threatened by the ambiguity of the future and
create institutions and beliefs to try and avoid those threats is reflected in the score of
uncertainty avoidance.
Different Asian countries have different scores on uncertainty avoidance. Some score high while
others have low uncertainty avoidance index. Societies with low uncertainty avoidance index are
more relaxed and unworried about tomorrow. They believe that there is no need for strict rules
that are meaningless to the people (Alipour, 2019). They prefer freedom over strictness. On the
other hand, those that score high in the uncertainty avoidance index have strict rules that are
put across to enable people to avoid danger and avoid harm.
The United States has a low uncertainty avoidance index according to Hofstede’s analysis.
Americans are open to new ideas and innovative products. They love to explore new products
and they advocate for freedom of expression. Rules are important among Americans but they
do not always follow them. They are flexible with rules.
Long term orientation vs. short term orientation
This cultural dimension is all about preparation for the future. A society with a culture of long-
term orientation puts more emphasis on preparing about the future while those with a culture of
short-term orientation are only concerned with short-term gratification and do not care much
about the future. It describes how a society has to maintain links with its past and at the same
time deal with the challenges of its present and the future.
Societies that score high in this dimension encourage people to put more effort into modern
education as the most effective way to prepare for the future. On the other hand, societies with
a low score in this dimension prefer to honor their norms and traditions and they view changes
in the society with suspicion.
Most Asian countries, especially East Asian countries, have a culture of long-term orientation
unlike the United States which is identified as short-term oriented societies. Many Asian
countries practice pragmatic culture when handling things. In Asia, truth, lie, right and wrong
depend on the current situation, time, and context. Something can be true in a certain context,
and wrong in a different context. They do not draw answers from past situations but rather deal
with situations as they are in the present. Asian societies show the ability to adapt to new
conditions which is an important aspect in saving and investing and perseverance in achieving
goals and getting positive business outcomes (Darsono et al., 2021).
Americans have a culture of analyzing and rechecking new information to check if it is true or
not. They have very strong ideas on whether something is right or wrong or good or evil.
Businesses in America measure their success or failure within a short-term basis. Most
companies or organizations issue their profit or loss statement on a quarterly basis.
Research question 4: what are the implications for United States businesses that
wish to conduct businesses in Asia?
There are several things that Americans who wish to do business in Asian countries must learn
and adjust to fit well in Asia and do business successfully. First and foremost, communication is
a very key factor in doing business. To conduct business in Asia, American’s should learn the
indirect communication style of Asians. It is important to master things bowing slightly while
greeting other people, avoiding embarrassing and belittling words especially when addressing
organizations’ leaders, using their right hands when passing things to other people, and
avoiding to touch other people’s heads because it is rude to do so in Asia, and all other aspects
mentioned above like politeness ad humility. Also, it is important to note that although English is
the international business language, it is not proficient in Asia. For that reason, they may
require to have translators when doing business negotiations and other dealings.
Americans should also learn that in Asia, fairness in business is relative. When planning to
conduct business in Asia, it is important to understand that Asians express emotions in the
business environment. They favor people with some emotional bond in businesses. It is normal
for them to consider friends and relatives for business opportunities.
In addition, it is important to understand that giving gifts in a business set up is not allowed in
Asian countries. This is seen as giving briberies. Asians are very competitive and they are goal
chasers. Therefore, it is safe to invest with them because they will work hard to ensure that
businesses grow and there are minimal instances of failure in business.
SWOT analysis
SWOT analysis is a structured approach to evaluating an organization's current and future
position. It involves examining the internal and external factors that influence the organization,
such as its strengths and weaknesses, as well as the opportunities and threats it faces. The
acronym SWOT stands for Strengths, Weaknesses, Opportunities, and Threats.
Strengths refer to the internal capabilities and resources that an organization possesses. These
can include tangible assets, such as financial resources, intellectual property, or technology, as
well as intangible assets, such as reputation or a talented workforce. Identifying an
organization's strengths can help it capitalize on its unique advantages and build on its
competitive edge.
Weaknesses are the internal factors that may hinder an organization's performance. These can
include limited financial resources, lack of skilled labor, or outdated technology. Identifying an
organization's weaknesses is important as it helps to highlight areas that need improvement,
such as staff training or resource allocation.
Opportunities are external factors that an organization can capitalize on to improve its position.
These can include changes in consumer behavior or preferences, emerging markets, or
regulatory changes. Identifying opportunities allows an organization to take advantage of
favorable conditions and gain a competitive edge.
Threats are external factors that can potentially harm an organization's performance. These can
include economic downturns, competition, or changes in consumer trends. Identifying threats
allows an organization to prepare for potential risks and develop strategies to mitigate their
impact.
Strengths
The strengths that Americans possess to conduct business in Asia include;
• Masculinity – being a masculine society, Americans can fit well in the business
environment of Asia because they have that dimension in common. They work hard on daily
basis to ensure they achieve their goals; a factor that will make it easier for them to grab any
opportunities that are present in Asia.
• The culture of low uncertainty avoidance – Americans are open to trying new innovations
and new ideas although they do so with suspicion. This culture will enable them so set up
businesses in Asia and adjust to their rules and regulations.
Weaknesses
Some of the weaknesses that Americans have and could hinder them from successfully
conducting business in Asia include;
• Language barrier – most of the Asian countries use their native language while doing
business. Although English is the international business language, Asians are not fluent in it.
• Culture differences – Americans differ in so many ways in terms of culture. For example,
most of the verbal and non-verbal communication styles in America are considered rude in Asia.
Therefore, American investors in Asia may find it hard to pass information successfully.
• The issue of individualism – American culture of individualism may hinder them from
doing well in business in Asian countries. They have to learn how to work as a group to achieve
a common goal.
Opportunities
The opportunities that are there for Americans who wish to conduct business in Asia include;
• Fast-developing environment – as mentioned earlier, Asia is a masculine society
whereby they strive for success and they have high educated individuals and these are some
factors which enable the society develop fast (Rezaee et al., 2019). Asia therefore presents a
better environment for every type of business.
• High population and market – Asia is the most populated region in the world. For that
reason, it provides a large market for any form of business.
• Friendly business environment – Asians are very friendly and have high levels of
etiquette. Therefore, any American who wishes to conduct business in Asia assured of their
security and a friendly environment to start their businesses.
• Advanced infrastructure – Asia is still developing in terms of economy which gives more
opportunities for startup businesses because there is room for innovation.
Threats
Some of the threats that Americans who wish to conduct business in Asian countries face
include;
• Limited financial regulations and enforcement - Asia has a less robust financial
regulation and enforcement. This leads to higher chances of corruption.
• Domestic economic manipulation – most businesses in Asia especially in India and
China do not operate under the government regulation (Wardhani & Anggraenni, 2017). For that
reason, American businesses have to deal with local terms and currency rates and the locals
can intentionally keep their currencies low so that they can gain more from exports.
• Different legal systems – some Asian countries like Malaysia and china have strict
restrictions on operations of foreign companies and organizations.
Asian Business models
The diversity of the Asian economies has led to a range of different business models being
used, each with their own strengths and weaknesses. Some of the most common Asian
business models are:
Chaebol - This is a South Korean model of business organization where a group of companies
is controlled by a family-owned conglomerate. These conglomerates are often involved in a
diverse range of industries, including electronics, shipbuilding, and heavy industry.
Keiretsu - This is a Japanese model of business organization where a group of companies is
tied together through cross-shareholding, with the aim of increasing competitiveness and
reducing risk. The keiretsu model is often used in industries such as automotive and electronics.
State-owned enterprises (SOEs) - These are government-owned corporations that operate in a
range of sectors, including energy, transportation, and telecommunications. China has one of
the largest numbers of SOEs in the world.
Contract manufacturing - This model involves outsourcing the manufacturing of products to
third-party suppliers. Many companies in Asia, particularly in countries such as China and
Vietnam, specialize in contract manufacturing, offering low-cost labor and high levels of
expertise.
Franchise - This model involves a business selling the right to use its brand name and operating
system to other businesses. Franchising has become increasingly popular in Asia, particularly in
the food and beverage industry.
E-commerce - Asia is home to some of the largest e-commerce platforms in the world, such as
Alibaba and JD.com. E-commerce has grown rapidly in recent years, driven by the region's
large and rapidly growing middle class.
Social enterprise - Social enterprises are businesses that have a social or environmental
mission at their core, and use profits to further that mission. Social enterprise has grown rapidly
in Asia, particularly in countries such as India and Bangladesh.
Family-Owned Businesses
Family-owned businesses are prevalent in Southeast Asia, particularly in countries like
Thailand, Indonesia, and the Philippines. These businesses are often passed down from one
generation to the next and are characterized by a hierarchical structure, where decisions are
made by the family patriarch or matriarch. These businesses are known for their long-term
vision and their focus on building relationships with suppliers and customers. Examples of
successful family-owned businesses in Asia include Ayala Corporation in the Philippines, the
Charoen Pokphand Group in Thailand, and the Sinar Mas Group in Indonesia.
FDI analysis
FDI, or foreign direct investment, is a critical element of global economic activity. It is defined as
a company's investment in a foreign country through the creation or acquisition of a subsidiary
or business. FDI plays a vital role in a country's economic growth, providing access to new
technologies, increasing employment opportunities, and spurring innovation.
One of the main advantages of FDI is the opportunity it provides for companies to expand their
operations in foreign markets, thereby increasing their revenue and profits. This expansion can
be achieved through various modes of FDI, including joint ventures, mergers and acquisitions,
and greenfield investments.
The following are the Foreign Direct Investment trends in Asia for 2020/2021. Globally, both
foreign direct investment inflows and outflows started to recover in 2019. The COVID-19
pandemic has however caused Asian FDI flows to drop from 45% to 35% (Abd Rashid et al.,
2020). However, Asia has remained the largest source of global outflows for the second year
now. In 2019, Hong Kong and China were ranked the highest in FDI recipients attracting thirty
eight percent of the total FDI inflows in Asia. Japan was also the largest source of investment
from Asia in the same year; it was responsible for forty two percent of outward FDI in Asia.
The COVID-19 pandemic has affected economy globally. In Asia, the cancelled or delayed
investments projects are due to lockdown measures which include physical closure of
businesses, construction sites, and manufacturing plants (Chaudhary et al., 2020). FDI is
therefore expected to remain low throughout 2021 because of the effects of the COVID-19
pandemic. The future of FDI is unknown because it will all depend on the period of time that the
pandemic will take to clear, how the government will manage to set effective policy interventions
which will stimulate investments and navigate the economic effects of the crisis. For that reason,
it is impossible to predict FDI recovery rates at the moment.
Future of Asian Businesses
Asia is home to some of the world's largest economies, including China, Japan, and India.
These countries, along with others in the region, are expected to continue to drive global
economic growth in the coming years. Here are some key factors shaping the future of Asian
businesses:
Digital Transformation: The digital transformation is reshaping businesses worldwide, and Asia
is no exception. With the rise of mobile technology, social media, and e-commerce platforms,
businesses are increasingly able to reach customers in new and innovative ways. Asian
businesses are taking advantage of these trends, with many investing in digital technologies to
streamline their operations and improve their customer experiences.
Growing Middle Class: Asia's middle class is growing rapidly, with millions of people joining the
ranks of the middle class every year. This presents a huge opportunity for businesses, as the
middle class is a key driver of consumer spending. As more people in Asia become middle
class, businesses are likely to see increased demand for their products and services.
Infrastructure Development: Many countries in Asia are investing heavily in infrastructure
development, including transportation, energy, and telecommunications. This is creating new
opportunities for businesses, as improved infrastructure makes it easier to transport goods and
services, access new markets, and connect with customers.
Innovation and Entrepreneurship: Asia is becoming an increasingly fertile ground for innovation
and entrepreneurship. Governments in the region are investing heavily in research and
development, and there is a growing startup culture in many countries. This is leading to the
creation of new businesses and industries, as well as the growth of existing ones.
International Trade: Asia is a major player in international trade, with many countries in the
region exporting goods and services around the world. As trade barriers continue to come
down, businesses in Asia are likely to see increased demand for their products and services
from overseas markets.
Environmental Sustainability: As awareness of environmental issues grows around the world,
businesses in Asia are increasingly focused on sustainability. Many companies are investing in
renewable energy, waste reduction, and other sustainability initiatives in order to reduce their
environmental impact and meet consumer demand for eco-friendly products and services.
Geopolitical Uncertainty: Despite the promising future for Asian businesses, there are also
challenges on the horizon. Geopolitical tensions, including trade disputes and territorial
disputes, could disrupt economic growth in the region. In addition, rising protectionism in some
countries could make it harder for businesses to expand globally.
Conclusion.
Asia is a diverse continent with varying cultural values that affect business practices.
Understanding and respecting these cultural differences is essential for successful business
interactions in the region. Power distance, masculinity and femininity, and Confucian values are
some of the significant cultural factors that influence business practices in Asia. A global
business cultural analysis of Asia also shows that the region has a strong emphasis on family,
relationships, and social networks, which are crucial for business success.
Additionally, Asian countries have been experiencing rapid economic growth and
industrialization, making them key players in the global economy. The region is also witnessing
a rise in innovation, entrepreneurship, and digital transformation, leading to the emergence of
new business models and practices. The implementation of various initiatives and policies by
governments to promote international trade and investment has also opened up opportunities
for foreign businesses to establish operations in the region.
However, despite the growth and potential opportunities, Asia still faces challenges in terms of
corruption, bureaucracy, and political instability, which can hinder business growth and success.
To succeed in the Asian market, businesses need to have a deep understanding of the region's
cultural values and practices and develop effective strategies to navigate the challenges.
In conclusion, businesses that adopt a culturally sensitive approach, build strong relationships,
and embrace innovation and digital transformation are likely to thrive in the dynamic and diverse
business environment of Asia.
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