Asian business culture

Résumé du document

Since the last decade the Northeast Asian economies such as Japan, South Korean and Taiwan have had a remarkable growth and an important development into world-class economic powers. They have emerged from an "array of political and social challenges such as world and civil wars, massive migration, external occupation and colonization and substantial destruction of their economic capacities to become extraordinarily successful players in the world economy" (Orru, Biggart, Hamilton 1997). Each of them have a particular business culture which has contributed to their success. These cultures are quite different when compared to the Western culture.
In the first part we will study the business culture in Asia Pacific, more particularly for Japan, South Korea and Taiwan communities. We will try to know how these cultures have contributed to the economic and business organization. In the second part we will study how all that has contributed towards the economic success in the Pacific Rim.

Fukuyama (1995) defines the culture as an inherited ethical habit. He adds that an ethical habit can be an idea or a value. Business culture in Asia Pacific is characterized by many elements. Withley (1991) identified the "distinctive forms of dominant business organization" in Japan, South Korean and Taiwan. These three Northeast Asian countries have one business culture that is very strong. However Whitley (1991) noted already three main differences between these three different forms of business organizations which classified as following: one system of authoritative coordination and control, the enterprise domain and development and the nature of enterprise co-ordination and market organization.

Extraits

[...] These three Northeast Asian countries have one business culture very strong. It is for that we will study it in this part. However Whitley (1991) noted already three main differences between these three different forms of business organizations which classified as following: one system of authoritative coordination and control, the enterprise domain and development and the nature of enterprise co-ordination and market organization. i. Japan The Zaibatsu/Keiretsu: In Japan we called the business conglomerates zaibatsu. Zaibatsu have enormous influence on the Japanese economy. [...]

[...] In addition in spite of their United State occupation for Japan for example, never Japan government tried to take as model United State economy. Northeast Asian countries are developed their own economic models. References Orru, M., Biggart, N.W. & Hamilton, G.G. (1997) The economic organization of East Asian Capitalism SAGE Publications Yoo, S. & Lee, S.M (1989) Management Style and Practice of Korean Chaebols Fukuyama, F. (1995) Trust the social virtues and the creation of prosperity Penguin Books Whitley, R.D. [...]

[...] It is expected from a Taiwan manager to be remote and aloof from subordinates (Whitley 1991). The managers have to maintain high group morale and performance. In addition they are directive and didactic. As Korean firms, Taiwan firms do not hesitate to become diversified in other area than their specialization due to above all of their personal nature of ownership and control (Whitley 1991). However even if the diversified groups are developed in Taiwan they are widely more like family partnerships than authoritatively integrated enterprises (Whitley 1991). [...]

[...] As the Zaibatsu in Japan, the chaebols bring competitive advantages. Firstly they have a really good mean to keep large amounts of capital together (Orru, Biggart & Hamilton 1997). Their important investments in the steelmaking, shipbuilding or automobiles manufacturing industries are numerous examples in which chaebols have allowed intensive investment in target industries, impossible for only one independent. Secondly, their rigid hierarchy has allowed maintaining the worker discipline. However rigid hierarchy and centralization do not encourage a real innovation (Orru, Biggart & Hamilton 1997). [...]

[...] Hence the Korean businesses did not have the choice to ask the government. As result if your business did not appeal the government, the financing was difficult to obtain. In Taiwan the government has another role, it takes care of industrial infrastructures such as energy or transportation but it tends to keep out of the economy (Orru, Biggart, Hamilton 1997) This has contributed to the economic success of the Pacific Rim Economic growth of Korean is sometimes called miracle of the Han River” due to the miracle of the Rhine River (in West Germany) and the Smida River (Japan) (Yoo & Lee 1989). [...]