Culture is only one variable determining the differences between Asian and Western business practices.

‘Asian’ Business Patterns: 

Culture in Context

By Peter A. Coclanis

In early June 2013, the Financial Times ran a lengthy feature entitled “Succession Lessons Sought for Asian Family Businesses.” The subject of succession is especially prominent these days in China, the Financial Times suggests, because many enterprises there were founded during the economic reforms of the 1980s and will soon be facing generational changes. The gist of this piece was that “[a]lthough problems with succession are not unique to Asian family businesses, the difficulties are more acute because there is an added cultural reluctance to broach the issue of succession.” Well, maybe. But when culture is invoked in this way, many economic historians will feel the urge to reach for Beta Blockers so that their blood pressure doesn’t spike.



If the passionate debates of the 1990s regarding “Asian values” have quieted down, assertions of culturally determined differences between “Asian” and “Western” business organizational strategies and structures are still going strong. Making binary distinctions between the characteristics of “Western” and “Asian” (typically “Chinese”) business organization and behavior is common. Discussions involve impersonal corporations vs. family-run firms, transaction-based relationships vs. guanxi (personalized connection or influence) networks, contracts vs. trust, individual vs. group orientation, short term vs. long run thinking, transparency vs. opaqueness, etc. — or, more to the point, Western vs. Asian business characteristics.

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Peter A. Coclanis is Albert R. Newsome Distinguished Professor of History and Director of the Global Research Institute at UNC-Chapel Hill (USA).
FURTHER READING: Coclanis also writes “Pride and Prejudice: Contrarian Speculation on Wall Street’s Future” and “Are There Hidden Virtues to Bowling Alone?” Glenn Hubbard and Tim Kane excerpt their book in “Imbalance: Institutions and the Chinese Economy, Past and Present.” James Pethokoukis blogs “The Most Important Economic Chart in Western Civilization – And How It Happened” and “Romney Is Right. Culture Is Why Israel And the West Are Rich.” Timothy P. Carney explains “How Chinese Investors Buy Their Way into the U.S. Economy,” Dan Blumenthal examines “The ‘Beijing Model’ Bubble,” and Mark J. Perry says “Don’t Expect Apple-Like Innovation in China.”


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