The differences in business systems in Asia and the West Essay Example for Free

The differences in stage worry sy kiboshs in Asia and the West EssayWhen researching the differences in line of merchandise systems amid Asia and the West it is really difficult to find any material that does non put umpteen of these disparities to ethnic influences (Davidson, 1987 Ferguson, 1993 and Blackman, 1997). This is due to the fact that it is generally believed that inter heathenish aw arness does contribute to successfully doing business in another cultivation. However, establishing how and where culture affects business systems is by no means an easy question to answer and umteen occidental businesses are in fact streamly trying to answer this question in say to successfully integrate into the Chinese marketplace (Dayton, 2006 and Journal of Intercultural Learning, 2006). Therefore, in this essay I will analyse exactly what persona culture has in explaining the distinctions in the midst of business systems in the West and chinaware and point that i n many cases these discrepancies are incorrectly attributed to cultural reasons when in fact these variations can be explained by using far more obvious scotch causes.Harris (2006) notes the eagerness of business journalists to attribute the differences in westbound and Asian business systems to cultural factors by stating the airport newsstand best-sellers and glossy news weeklies are packed with admonishments to pertain face and build relationships and local Chinese writers have jumped on the bandwagon, poking fun at the clueless westerners blundering towards failure in mainland chinaware because they dont pick up the local culture. Graham and Lam (2003) concur stating that westward and Chinese approaches to business often await incompatible. Graham and Lam (2003) as well believe that these differences in business systems and attitudes stem from deep cultural origins and in order for western business to successfully interact with their Chinese counter interpreters they es sential understand the cause of these differences is in fact their cultural differences.However, Maidment (2006) argues that western Multi-National Companies (MNCs) are succeeding in chinaware because they place undersized value on the role of culture when conducting business in mainland China, but sort of focus solely on business issues when conducting business. Maidment (2006) states that MNCs succeed because they hire the best local talent, pay the highest salaries, and apparel the most. They have no culture, no beliefs, and nopredispositions. They are machines. It does seem that too many western businesses are too concerned with recognising cultural differences in China, which often provide no explanation to the difference in business systems. Instead they should just focus on implementing successful business strategies in China, quite a than become fixated on cultural differences (Harris, 2006 and Dayton, 2006).Recognising that China has a dissimilar culture to that of w estern countries is not a planetary explanation to explain the differences in business systems (Baird et al, 1990). In fact, Maidment (2006) argues that traditional Chinese culture is changing so fast that no one understands it. It is on that pointfore debatable whether or not culture plays any part in the difference in business systems, this is due to the fact that the current generation of Chinese professionals has very little in commons with the previous one (Maidment, 2006). One could therefore argue that analysing cultural differences to explain the business ones carries very little weight in China (Asian Business Law, 2006).However, Maidment (2006), Harris (2006) and Dayton (2006) all concede that discerning Chinese history and culture is a benefit to conducting business in China but also state that cultural knowledge should not be solely relied upon in order to understand these differences. presumptuousness the rapid changes that are occurring in both the Chinese marketp lace and Western economies it would seem that understanding the economic forces of the here and now would provide far greater insight into understanding the differences between China and the West, rather than mulling over traditional cultural influences.In contrast the Journal of Intercultural Learning (2006) when contrasting Chinese and Western businesses argues that culture shapes our values, attitudes and our behaviour. It affects the way we communicate with each other, the way we expect to lead and to follow, the way we negotiate, the way we misdirect and sell, and the way we work together in teams. Nevertheless such a broad statement provides little insight into which specific aspects of culture affects business systems in both Asia and the West. In order to better understand this, a contextual bandagingground is needed rather that justproviding stereotypical cultural tips, such as those that are regularly found in many business magazines. Anyone who thinks reading a few book s on Chinese culture gives them the measure of the individual Chinese person with whom they are dealing is mistaken (Maidment, 2006).When examining the current differences in business systems between the West and China, differences in educational systems and levels in different localities, the rate of change, the participation of different systems in different locations, geographical factors and the widening gap in economic development between Chinas rich and poor provinces all affect business developments to a greater extent than any cultural factors would (Harris, 2006, Dayton, 2006, Ferguson, 1993 and Maidment, 2006).Burton and Scott (2008) do not however share such reservations when glorifying the role of culture in explaining the differences in business systems. Burton and Scott (2008) argue that the Chinese have been conducting business for thousands of years, and their system of business ethics has been shaped by the culture in which it developed as was the business system in the West. At the centre of these differences is the fact that Chinese culture is far more relational than Western culture, and this difference is especially pronounced in business culture (Burton and Scott, 2008). Indeed, Miles (1999) also recognizes the stark differences in business relationships between the West and China and maintains that this is at the spunk of potential differences between the two systems.The type of relationship and networking structure that is referred to by Burton and Scott (2008) and that is such a crucial part of conducting business in China is of course, guanxi. Despite the various definitions relating to guanxi, there appears to be a common consensus that guanxi has its own cultural base and meaning in Chinese culture (leeward, 2006 and Yang, 1994). In order for guanxi to be established between two or more people there needs to be a cultural base and many candidates for guanxi bases are unique to the Chinese culture (Chen, 2004 308). Therefore, whi le social networking is principal(prenominal) when conducting business in any country throughout the world, the type of networking referred to as guanxi appears to beexclusively Chinese as it can not be separated from the intricacies of Chinese culture. In fact, Burton and Scott (2008) argue that because of Chinese culture, guanxi defines not only relationships but also how business is done in China. Given these circumstances and the importance that many scholars place on the role of guanxi in explaining the difference in business systems between the West and China, it would appear that culture is the dominant factor to explain these discrepancies (Backman, 2001 and Chen, 2004).Therein however lies the problem in establishing exactly what role culture plays in explaining the difference in business systems between the West and China. While Backman (2001), Chen (2004), Burton and Scott (2008), Yang (1994) and Lee (2006) all argue that guanxi is inextricably linked to Chinese culture and that culture is the root of the differences in business systems between the West and China, Dayton (2006), Harris (2006) and Maidment (2006) contend that these universal business tips such as guanxi and preserving face are in fact not cultural specific.This is best summarized by Harris (2006) who states there is just hardwork and guanxi, which is good networking, a exquisite universal essential to doing business anywhere. Good networking therefore is an interpersonal skill that needs to be apply to cross many cultural divides, not just those between the West and Asia. Simply defining the different ways that Chinese businessmen interact as guanxi and attributing this to culture is far too simple, as there are many other factors rather than just culture that are the source of these differences in business systems.Furthermore, Maidment (2006) argues that understanding Chinese culture is is a lot like learning chess. The basic rules are tardily memorized responding to every situa tion that can arise is very, very difficult. Given the speed that the Chinese economy is pitiful at, businesses are often searching for answers to explain the differences in business systems and are increasingly falling back on the broad generalization that it can be explained because China simply has a different culture.The accuracy of the matter however is that these so called predeterminedcultural differences that are so often spouted by western business magazines have huge variations in many Asian countries, particularly China where business and cultural philosophies vary greatly among the rich and poor provinces, the educated and the uneducated and the young and old business generations (Harris, 2006, Maidment, 2006 and Dayton, 2006). sagacity Chinese history and culture is beneficial for understanding Chinas business system, however because circumstances in China change so quickly, staying abreast of Chinas current situation is far more important than knowing its preceding( a) (Maidment, 2006). There is no doubting that culture does play a role in determining the differences between the business systems of the West and Asia, but all too often these cultural influences are over-exaggerated, and current regional and international economic influences more often than not dictate the differences between Asia and the West.BibliographyAsian Business Law. (2006) Do The Top Ten Cultural Tips For Doing Business In China Really Help? (Online) http//asiabizlaw.blogspot.com/2006/04/do-top-ten-cultural-tips-for-doing.html Accessed 30th April 2008.Backman, Michael (2001). Asian dominate Exposing the Dark Side of Business in Asia.Singapore prank Wiley and Sons Inc.Baird, I.S., Lyles, M.A. and Wharton, R. (1990). Attitudinal differences between American and Chinese managers regarding reefer venture management. Management International Review, Volume 30.Blackman, Carolyn (1997). Negotiating China case studies and strategies. St. Leonards, NSW Allen and Unwin.Burton, F and Scott, S. (2008). 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