24. Oct. 06, 15:52
The Overseas Chinese (Taiwan, Hong Kong, Singapore)
[p.21]
Enterprises are usually small and family-owned. When needed they undergo cooperations with other small businesses to which they are interrelated through personal networks. Hofstede sees them to mainly focus on one market/one product, aiming on a "growth by opportunistic diversification". The process of decision-making is usually centralized to the head of the family. Family members are absolutely loyal and wait till they get the chance to prove themselves in new ventures. Sons and sometimes daughters will be send to prestigious business schools abroad but are expected to return to the family business. The idea of management is based on Confucian values, such as loyalty, thrift (Wirtschaftlichkeit, Sparsamkeit) and persistence.
Hofstede describes the historical base for this idea of business and management as a "society, in which there were no formal laws, only formal networks of powerful people guided by general principles of Confucian virtue." Authorities and their opinions could change daily which made the family to be the only reliable institution. This effect is further deepened by the fact that the overseas Chinese in the respective countries always formed an ethnic minority.
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Enterprises are usually small and family-owned. When needed they undergo cooperations with other small businesses to which they are interrelated through personal networks. Hofstede sees them to mainly focus on one market/one product, aiming on a "growth by opportunistic diversification". The process of decision-making is usually centralized to the head of the family. Family members are absolutely loyal and wait till they get the chance to prove themselves in new ventures. Sons and sometimes daughters will be send to prestigious business schools abroad but are expected to return to the family business. The idea of management is based on Confucian values, such as loyalty, thrift (Wirtschaftlichkeit, Sparsamkeit) and persistence.
Hofstede describes the historical base for this idea of business and management as a "society, in which there were no formal laws, only formal networks of powerful people guided by general principles of Confucian virtue." Authorities and their opinions could change daily which made the family to be the only reliable institution. This effect is further deepened by the fact that the overseas Chinese in the respective countries always formed an ethnic minority.
Learn more about: back to overview
