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About this book

The third edition of this core textbook, edited and contributed to by recognised international authorities on the subject, outlines the critical contextual and theoretical issues of business and management in Asia and offers a fresh, topical analysis of management in the major Asian nations. Featuring an accessible two-part structure and updated with the latest research, the book will enable students to assess Asian management systems and the strategies adopted by corporations and governments. The text’s thought-provoking teaching and learning tools guide students through a number of the key topics in the field, including globalization, regionalism, corporate social responsibility, ethics, ecological issues, industrial relations and sustainability.

This is an ideal textbook for upper-level undergraduates and MBA students studying modules in Asian Business and Management. In addition, it is an essential text for managers and executives seeking a more realistic understanding of business and management in Asia as an evolving adaptive system.

Table of Contents

Part 1 Aasian Business Systems: Major Issues

Frontmatter

1. The Idea of a Business System

Absttract
This chapter presents a framework into which much of the content of the rest of the book can be placed. It is based in a general field of study known as comparative institutional analysis, and uses the idea of complex adaptive systems that evolve and adapt to a changing business world. It is designed to break down the analysis of something highly complex into components that fit together and make sense as a total. Understanding business systems in this way helps to understand complex environments and lets us avoid the use of simplistic responses to complex issues.
Harukiyo Hasegawa, Michael A Witt

2. Asian Cultures and Business Systems

Abstract
It is perhaps a tribute to the deep influence of culture that the societal differences remain quite clearly visible when you move across borders, but that does not prevent the region from being full of hybrids such as joint ventures, or other alliances. Nor does it prevent very high levels of interchange in trade and investment. But when you go into any specific organization, you will find in most cases that its internal systems reflect the culture from which it has emerged, even though it may be situated elsewhere. This affects behavior and is why international business needs to be conducted with some respect for such variety and its implications.
Harukiyo Hasegawa, Michael A Witt

3. Corporate Governance in Asia

Abstract
One of the salient features of modern corporate firms is the separation of ownership and control where some or all owners are not actively involved in running the business and therefore do not have entire control of how the firm is operated. In such cases, there is a need for corporate governance, broadly defined as a mechanism by which a firm is directed and controlled to ensure that the owners will get returns on their investment.
Harukiyo Hasegawa, Michael A Witt

4. 4 Human Resource Management in Asia

Abstract
The wide variety of business systems described in Chapter 1 contributes to the diversity in human resource management (HRM) policies and practices in Asia Pacific. Given the differences in political, economic, and sociocultural systems in the broad range of countries that comprise Asia, it is not possible to cover the HRM systems and practices in all economies in this region. Rather, the focus will be on Japan, South Korea (hereafter: Korea), and China, three countries in East Asia that have been clustered together as ‘Confucian Asia,’ that is, countries that have been influenced by the teachings of the ancient Chinese philosopher, Confucius.
Harukiyo Hasegawa, Michael A Witt

5. 5 Technology Development in Asia

Abstract
In the first decades of the 21st century, Singapore, Malaysia, Thailand and, most notably, the giant nations China and India, were joining Japan, South Korea (hereafter: Korea), and Taiwan as major centers of technological strength. In 2009 China passed Japan, becoming second only to the United States in R&D spending (see Table 5.1). India, while less impressive in R&D spending, was rapidly becoming a center of global excellence in the knowledge-intensive service sectors and in biotechnology. In 2015 Korea tied with Israel in having the highest ratio of R&D expenditure to GDP of Organisation for Economic Co-operation and Development (OECD) members. Overall, Asia now accounts for more than a third of global expenditure on R&D.
Harukiyo Hasegawa, Michael A Witt

6. 6 Family Business Groups in Asia

Abstract
Family firms are prevalent around the world and contribute significantly to the private sector economy, making up around 70 per cent of global GDP. Many of these companies are smaller firms, but they also make up a significant portion of the large firms. In the US, for instance, about a third of the Fortune 500 companies are owned and/or controlled by family members.In most economies in Asia, however, a much larger share of the large companies are family firms. A study estimated that more than 60 per cent of the publicly listed companies in most South and Southeast Asian economies were family firms and a series of studies shows that these firms appear to be more profitable than non-family counterparts. While family firms tended to be generally smaller than non-family ones in terms of market capitalization, family-owned firms constitute a significant portion of economic activity across Asia.
Harukiyo Hasegawa, Michael A Witt

7. 7 MNEs in Asia

Abstract
Studying the activities of multinational enterprises (MNEs) in Asia is fundamental to understanding the success of these economies nowadays. These firms have been key shapers of the economic development paths of many Asian countries. The role of MNEs in the region continues to grow, as witnessed by successive waves of foreign direct investment (FDI) and the integration of Asian economies into MNEs’ global value chains (GVCs). Each individual country’s experience has been unique, but some commonalities can be established, particularly in terms of how MNEs have moved towards increased specialization and integration of activities, and how this has impacted upon the economic landscape of Asia.
Harukiyo Hasegawa, Michael A Witt

8. 8 Regionalism and Production Networks in Asia

Abstract
Redding notes above that international business “is by definition conducted across the boundaries of societies” and that “such boundaries are significant in shaping what goes on inside countries.” The central premise of this text is that the adoption of the business system approach offers an individual, or an organization, the tools with which to grasp and analyze these local realities. The model is equally powerful when seeking to better understand both the local business environment and firms from that environment.
Harukiyo Hasegawa, Michael A Witt

9. ESG Policies and Practices in Asia: Toward Contingent Convergence

abstract
According to the Asian Development Bank (ADB), Asia could account for about 50 per cent of world GDP by 2050 However, with inequality increases in the region, segments of the population do not benefit from the growing wealth, and large regional differences still exist Many Asian people still do not have access to adequate education and training, especially girls, women, and minorities, and the rise of socially and economically excluded people is observed The depletion of natural resources accelerates, threatening health, agriculture, and the existence of biodiversity hotspots. Uncoordinated urbanization threatens human health and the environment with risks of pandemics, climate, and food and water insecurity. Material consumption and carbon dioxide emissions are also rising quickly in the region Environmental Performance Indicators show that environmental performance in Asian countries is not commensurate with their political, technical, and managerial level of development: Japan’s ranking is 20; Singapore 49; South Korea (hereafter: Korea) 60, and China 120.
Harukiyo Hasegawa, Michael A Witt

Part 2 Varieties Of Business Systems In Asia

Frontmatter

10. The Business System of China

Abstract
China is the world’s largest economy, having surpassed that of the United States around 2013. By 2017, China accounted for 18 per cent of world GDP at purchasing power parity (PPP), while the US contributed 15 per cent.
Harukiyo Hasegawa, Michael A Witt

11. 11 The Business System of India

Abstract
India is among the top five economies in the world (nominal Gross Domestic Product as well as purchasing power parity), a feat attributable to the size of the country and the sturdy economic growth in the recent decades. A population of more than 1.2 billion (2011) with an expanding middle class marks India as a vibrant and growing market but concerns remain about inequality and poverty.
Harukiyo Hasegawa, Michael A Witt

12. The Business System of Indonesia

Abstract
Indonesia’s business system is significant and interesting because there is so much potential. A member of the G20, Indonesia is Southeast Asia’s largest economy and with 267 million people (2018), it ranks as the fourth most populous country after India, China, and the USA. And yet the performance of the Indonesian economy has been described by one economic historian as a “history of missed opportunities” despite many attempts to modernize. Indonesian organizations are notorious for their loosely defined boundaries. The purpose of this chapter is to understand the causes of this performance by examining how Indonesia’s business system functions, providing a basis for understanding its strengths and weaknesses. What makes Indonesia a valuable study is that there are many features that do not fit neatly into categories and patterns of behaviour which we would normally expect in a single country.
Harukiyo Hasegawa, Michael A Witt

13. The Business System of Japan

Abstract
Japan is Asia’s most developed economy. A densely populated country of 127 million people in an area about the size of Germany (82 million people) and somewhat smaller than California (40 million people), Japan was first among the Asian nations to industrialize.
Harukiyo Hasegawa, Michael A Witt

14. The Business System of Korea

Abstract
Abstract
South Korea (subsequently referred to as Korea) is a geographically small country with an area of approximately 100,000 km which covers the southern half of the Korean peninsula. However, in contrast to its limited geographic size, it is a major economic power. The Korean GDP amounted to more than US$1,400 billion in 2017 and was thereby the fourth largest in Asia behind China, Japan, and India. The country’s population is approximately 51 million people, and the estimated per capita income level in 2017 was US$30,200 at current exchange rates and US$38,300 on a purchasing power parity adjusted base, illustrating the fact that Korea has entered the group of very high-income countries. Moreover, income level per capita has increased by approximately 300 times since 1961, reflecting the country’s stunning economic development.
Harukiyo Hasegawa, Michael A Witt

15. 15 The Business System of Malaysia

Abstarct
Malaysia is a country of just over 32 million people located in Southeast Asia and one of the fastest growing countries in the region. It is a multicultural society, rich in natural resources, with high inflows of Foreign Direct Investment (FDI), and it is attractive to many for its beautiful touristic locations. The country has followed ambitious development objectives with the goal of raising Malaysia from a middle income country to a fully developed country status. The Eleventh Malaysia Plan (2016–20) is currently being implemented to pursue the Economic Transformation Program, with emphases in enhancing economic resilience, promoting inclusiveness and wellbeing, strengthening human capital development, and supporting green growth and infrastructure.
Harukiyo Hasegawa, Michael A Witt

16. The Business System of Singapore

Abstract
The Republic of Singapore (subsequently: Singapore) is a small island city state with an area of about 650 km located at the tip of the Malay Peninsula. From the time of its inception as a city, Singapore’s geographic location has helped it to become one of the major and successful hubs for the Southeast Asian region.
Harukiyo Hasegawa, Michael A Witt

17. The Business System of Vietnam

Abstract
Located in Southeast Asia, Vietnam is a developing country bordered by China in the north, and Laos and Cambodia in the west. With a population of more than 97 million people (2018), Vietnam is the third-largest population in the Southeast Asia and the fourteenth-largest one in the world.
Harukiyo Hasegawa, Michael A Witt
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