New Asian Emperors

George T. Haley (PhD, University of Texas at Austin) is Professor of Marketing, University of New Haven and Founding Director, Center for International Industry Competitiveness. He has been faculty at ITESM-Monterrey (Mexico), National University of Singapore, Queensland University of Technology (Aus.), DePaul, Fordham, and Baruch College. He has presented seminars to managers/policymakers on four continents, including for the National Intelligence Council, and the United States International Trade Commission and testified before the US-China Economic and Security Review Commission. He has over 100 articles, presentations and books including The Chinese Tao of Business. He consults with several multinational companies and governments in Asia, Australia, Latin America and the USA and serves on the Boards of Directors of listed companies, manufacturing organizations and government agencies. Usha C. V. Haley (PhD, New York University) is Asia Programs Fellow, Ash Institute for Democratic Governance and Innovation, Harvard Kennedy School, Harvard University and Research Associate at the Economic Policy Institute in Washington, DC. She has been Professor at the University of New Haven and prior at University of Tennessee-Knoxville, New Jersey Institute of Technology, Australian National University, National University of Singapore and ITESM-Monterrey, Mexico. She has more than 150 publications, presentations and books including Multinational Corporations in Political Environments and The Chinese Tao of Business. She has testified before the Congressionally mandated US-China Economic and Security Review Commission and the Committee on Ways and Means, and presented before the US International Trade Commission. She serves on several corporate and government boards.Chin Tiong Tan (PhD, Pennsylvania State University) is the Deputy President of Singapore Management University. He was a founding member of SMU and was its Provost from 1999 to 2008. He is active in management development and consulting. He designed and taught in many executive programs around the world, and is a regular speaker in the US, Europe, Australia, New Zealand, Asia and South Africa. He was the Academic Advisor to Singapore Airline's Management Development Centre for more than 15 years. He is on the Boards of Directors of several listed companies and served as strategic and business advisor to many organizations. He is the co-author of Marketing Management: An Asian Perspective, 5th Edition, 2009, Prentice Hall (with Philip Kotler).

• Preface xiAcknowledgments xiiiPart I: The Foundations of UnderstandingChapter 1: Introducing the Overseas Chinese of Southeast Asia 3Patterns of Chinese Migration 6The trader pattern 6The coolie pattern 7The sojourner pattern 7The re-migrant pattern 7Who Are the Overseas Chinese? 8What Is a Network? 15The Role of the Overseas Chinese in Southeast Asia 26The Role of the Overseas Chinese Worldwide 30Following Chapters 31Chapter 2: Confucianism Plus: The Philosophical and Cultural Roots of the Overseas Chinese 33Confucianism’s Influence on Chinese Trade and Economics 42The Family 50The Relationships and Ethical Behavior 54Differing Ethical Concepts 57Chapter 3: The Overseas Chinese Today: Not the Family Business, But the Family as a Business 61What Is a Chinese Network? 62Discontinuity 62Hierarchical and dyadic ties 63Uprightness 65Contextual morality 67Flexible boundaries 68Historical and Environmental Effects on the Overseas Chinese Business Networks 68Distinguishing Cultural Traits 79Firm-related attributes 80Loyalty-related attributes 82Trust-related attributes 83How Networks Permeate Formal Structures 85Part II: The Foundations of AnalysisChapter 4: Introduction to an Informational Void: The Black Hole of Southeast Asia 91The Informational Black Hole of Southeast Asia 94Operating in an Informational Black Hole 114Hands-on experience 127Transfer of knowledge 128Qualitative information 130Holistic information processing 132Action-driven decision making 132Emergent planning 133Chapter 5: Strategic Management of the Overseas Chinese Business Groups: Deciphering Patterns 137Tacit Knowledge and the Informational Black Hole 138Strategic Planning and the Networks 141Planning, classically 142Developing core competencies 144Crafting strategies 145A Summary of Overseas Chinese Management Practices 148The Overseas Chinese and crafting strategy 149How the Overseas Chinese plan 151The Overseas Chinese and their core competencies 158Part III: The Implications for BusinessChapter 6: In the Aftermath of the Asian Crises: Revolution or Evolution? 169The Path of Destruction 170The 1997–1998 Asian financial crisis 170The 2002–2004 SARS crisis 173The Post-crises Evolution of Overseas ChineseBusiness Groups 175Competitive Advantages of the Overseas Chinese 180Speed 182Knowledge 183Guanxi 185Empowerment 188Competitive Disadvantages of the Overseas Chinese 190Home turf only 190Susceptibility to blind-siding 192Poor proprietary capabilities 193x new asian emperorsFamily limits 194Lack of professionalization 196Chapter 7: Competitive Implications of the Overseas Chinese: Doing Business with the New Asian Emperors 199General Implications for Multinationals 200Specific Implications for Multinationals 204Strategic competitiveness 204Human resource practices 206Products and technology 209Contract flexibility 211Distribution 212Promotion and pricing 213Implications for Regional Governments 213Implications for Researchers 219Speculations About the Future 221The Adaptive-Action Road Map 224The road of knowledge 228The road of speed 229The road of action 229The road of results 230The road of relationships 230The road of quality 232The road of passion 232The road of legacy 233Bibliography 235Appendix: List of Interviewees 245Index 247