New Asian Emperors: The Overseas Chinese, Their Strategies and Competitive Advantages

Citation

Rich, M.K. (2000), "New Asian Emperors: The Overseas Chinese, Their Strategies and Competitive Advantages", Journal of Business & Industrial Marketing, Vol. 15 No. 1, pp. 71-73. https://doi.org/10.1108/jbim.2000.15.1.71.1

Overview

Many would assume from its title that this book is targeted for western businesspeople desiring to succeed in Asia. Philip Kotler indicated that it is, “a must reading for any business that wants to succeed in Asia”. According to the authors, this work primarily discusses the strategic management styles of the overseas Chinese networks that dominate the business and economic environments of Southeast Asia. The countries included comprise the Association of Southeast Asian Nations that collectively represent America’s second largest trading partner. Unlike other books on Asian strategic management, this is not a prescriptive book on strategy, but an analysis of the overseas Chinese style of management. It is based on interviews with some of the community’s most reclusive and influential chief executive officers. It presents the historical and cultural roots of overseas Chinese strategic management and its competitive advantages and disadvantages relative to traditional management practices. The work also offers a far more reaching value that, if understood, will provide a business philosophy that will have positive consequences to the reader far beyond the simple issues associated with business strategies. If the vision of relationships as embraced by the overseas Chinese is caught by the reader, these timeless truths will make this 155‐page paperback a resource tool that will have application within any cultural group. As we study other cultures and their methods of operation, we often gain insight into ourselves and the reasons we feel the way we do. Those feelings are acted upon differently by various cultures but the basis for those actions is almost universal. As professionals, we often focus on the marketing process as a series of events, events that are determinable, predictable, and whose effectiveness can be measured. The social impact of a dyadic exchange in the persuasive process is often overlooked or minimized since it is difficult at best to measure. That said, we still recognize that the most authoritative persuasive device available is word of mouth. Why is word of mouth so powerful? In essence, it is due to the relationship of the two parties involved in the exchange of information.

Eastern culture has refined the relationship process to a fine art, steeped in tradition and having its foundation firmly rooted in necessity. It is the roots of eastern relationships that are pursued by George Haley, Chin Tan and Usha Haley in their book, New Asian Emperors: The Overseas Chinese, Their Strategies and Competitive Advantages. They have done an excellent job in linking the history of the overseas Chinese to their current role and impact on world trade.

Content

As a people, we tend to stereotype cultures different from our own into sweeping generalizations. Westerners frequently view the Chinese people as one homogeneous population that is dominated by a controlling central government. In reality, they are no more homogenous than any western culture. China consists of a diverse population of different religions and ethnic groups that are often geographically identified. One interesting characteristic of the Chinese emperors that differentiated China from most other political groups was their drive for isolationism. The oppressive characteristics of the various Manchu dynasties were overthrown in 1911, by Sun Yat‐sen – a revolution financed in large measure by overseas Chinese communities that had developed a thriving trading empire after leaving the restrictive policies of the mainland. The authors’ research revealed four patterns of Chinese migration: the trader pattern, the coolie pattern, the sojourner pattern, and the descendent or re‐migrant pattern. The Chinese making up this last pattern do not speak the Chinese language, have never set foot in China, and have even emigrated from the countries in which their ancestors originally settled. The coolie pattern has supplied the bulk of today’s overseas Chinese population and many have grown into supreme business practitioners.

It is of importance in understanding the Chinese culture to recognize that when the different groups left China, they tended to settle among their own people in the different countries to which they went. The bulk of Southeast Asians are at least part Chinese in origin. As these groups migrated from China, they maintained a network of contacts that facilitated future trade opportunities. The manner in which their international trading presence evolved had several important effects on the style in which the overseas Chinese have historically conducted their business. Since trust constitutes the primary factor required for the formation of a network, family clans often represent the preferred members of networks. Three other traditional foundations for overseas Chinese networks include the localities of origin, the dialects or sub‐dialects spoken and traditional guilds.

To understand why the overseas Chinese possess such business prowess, we need to understand the core fundamentals of a network. The authors discovered a definition of a network (Charan, 1991)

that seems to summarize the underpinnings of power resulting from functioning within a network:

Networks are designed to empower managers to talk openly, candidly, and emotionally without fear, to enrich the quality of their decisions, to test each other’s motives and build trust, and to encourage them to evaluate problems from the perspective of what is right for the customer and the company rather than from narrow functional or departmental interests.

Although this quote is directed at internal networks within a firm, it can just as easily describe the networks used by the overseas Chinese. Each of these networks has a different basis for existence but the evolution of the membership in these networks holds the key for western businesspeople desiring to enter into business relationships with these various groups. The various network types are clan groupings, locality groupings, dialect groupings, guild groupings, or trust groupings. For a westerner to enter a business relationship with the overseas Chinese, it is essential that they enter the trust network grouping. The authors explain the trust building requirements and further expand on the time and commitment requirements essential in establishing such a relationship. Essential to understanding these networks is a knowledge of the historical impact of trust to these groupings when they had no one but themselves on which to rely.

The authors continue with a short discussion of Confucianism that provides a better understanding of Chinese life and the values that are central to their thinking. This is then combined with the history of the overseas Chinese to complete the picture. The present strategic decision‐making environment in Asia is then examined and linked with their perspective of strategic planning. Although different from the western conceptualization of strategic planning, the overseas Chinese accomplish the process through a different focus. The authors conclude this work with a presentation of the views of some of the most influential and private of the New Asian Emperors together with those of leading members of the next generation.

Conclusion

With the fast‐paced culture that surrounds us as the century draws to a close, it is sometimes difficult to realize that lasting relationships are formed around trust that is established over many years. The overseas Chinese realized that the only way they were going to survive and eventually thrive was to deal with those possessing the same values and principles. As they ventured from their homeland, seeking a better life, they recognized that they could depend on their own where the trust had been established over generations. The one‐sided benefit from this process was the development of an information network that was comprehensive and available only to those that were part of the network. This flow of information became power to the overseas Chinese in their dealings with other cultures and societies.

A study of this book will reveal something deeper than what the authors intended to deliver. Any culture today can establish profoundly strong relationships that will result in a competitive edge second to none. The one requirement will be to recognize the value of individuals that we trust and to form linkages with those that fit such a profile to establish networks that endure cyclical swings and consumer infatuations with momentary wants and needs. The question is whether western businesspeople possess the patience and dedication to form such alliances that can positively affect their business, not only for themselves, but for their progenitors as well.