Asian business culture
- Cultures contribution to economic & business organizations in the North Pacific rim
- Business culture in Asia Pacific
- Culture and management
- South Korean: The Chaebol
- Taiwan's condition
- Contribution to the economic success of the Pacific Rim
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 fact the Taiwan business groups tend to be networks of small to medium-sized family firms (Orru, Biggart, Hamilton 1997). Taiwan firms are very dependant of their sub-contractors, however their commitments to them are less extensive and durable (Whitley 1991). However any business groups are as large as Japanese or Korean groups. In fact the firms are built in one generation to break apart and re-form in the next (Orru, Biggart, Hamilton 1997). Furthermore the stability and the size of Korean firms will be never as strong as Japanese companies. [...]