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.
[...] After knowing the wars, the colonization, etc the business culture of Asian countries has allowed a renaissance for these countries. Even if the culture is not the only element which has contributed to this success, its role is really important. We note the importance of the conglomerate as chaebol and keiretsu respectively in South Korea and in Japan. These communities showed a strong mutual aid with strong relationships between them and not only inside the company but also with the subcontractors. [...]
[...] The South Korea's economic development is also due to the numerous efforts of the private business sector (especially those of the Chaebols) (Yoo & Lee 1989). The Chaebol: Yoo & Lee (1989) defined a chaebol as business group consisting of large companies which are owned and managed by family members or relatives in many diversified business areas”. As Japan, South Korean had some business conglomerates, they are called Chaebol. Chaebols produced a larger proportion of Korean GDP as Japan Zaibatsu but both are different, Korean chaebols differ many aspects especially in terms of ownership and management” (Yoo & Lee 1989). [...]
[...] In addition the Korean government decided which sectors of the economy will be developed and hence it chose business in order to develop these particular sectors (Orru, Biggart & Hamilton 1997). Korean 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 and also due to the encouraging from the state (Whitley 1991). The chaebol are vertically integrated, as result they are less dependant on intra-industry links with other firms (Whitley 1991). [...]
[...] Nowadays the Zaibatsu's are gone, any powerful family-owned business groups control the Japan economy even if large groups such as Sumito or Mitsubishi dominate the economy. These large groups are widely composed of several firms (up to twelve sometimes). They are independent but they operate together to gain mutual advantages. Orru, Biggart and Hamilton (1997) argue “they act like a Zaibatsu community of firms”. In spite of some critics the Japanese pattern get competitive advantages such as firstly one commitment to the organization (which is absent in the West). [...]
[...] Culture and management: Families are the ownership of the chaebols. In addition the management of chaebols is managed by family. Nowadays many corporations are still owned by the founder's family members. In fact the ratio of family ownership is higher than non chaebol (Yoo & Lee 1989). Members' family influences are very strong. It is expected from a Korean 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. [...]
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