RECONCILING WESTERN MANAGEMENT IDEAS WITH FAR-EASTERN REALITIES

Various writers have tried to force-fit Western management theories to South-east Asian businesses. Some rail against the lack of focus and suggest there is a need for Chinese entrepreneurs to concentrate on co re competencies and to break up their conglomerates. Other authors rec ognise the differences in Asia, especially the need to understand the importance of the family, government a nd other networks and to apprec iate the role which conglomerates play where 'Western type' financial markets and other financial institutions are weak. The author argues t hat there are differences in Asia. These are partly cultural and partl y due to the stage in development of the region. However, as we see mo re globalisation, the breakdown of protective trade barriers and the a cceptance by Asian conglomerates of outside capital to support their g rowth, there will be changes. There will be pressure towards more disc losure and more responsible corporate governance. The article describe s 'The Constitutional Triangle', a practical approach which can help W estern managers to reconcile the Anglo-Saxon shareholder value approac h with ASEAN values and customs. (C) 1998 Elsevier Science Ltd. All ri ghts reserved.