This
book seeks to assess the changing nature of western multinationals
(MNCs) in Southeast Asia following the 1997 economic crisis.
The crisis period marked a turning point in the way western
MNCs approached emerging markets, and the authors have effectively
transformed their analysis of this change into an insightful,
interesting read. Through its use of real-life case studies
and its frank examination of both failures and successes, the
book addresses a gap in the literature.
The
authors organised the book into three parts. Part I lays the
foundation for the rest of the book and provides an overview
of the incumbent MNCs. Part II goes on to analyse the nature
of organisational change within MNCs in the post-crisis business
environment. Part III addresses the evolution of marketing
strategies among MNCs, triggered by global pressures to rationalise
product and service offerings across the region.
The
dominant thesis of this book is that the post-crisis standoff
between “Eastern” and “Western” models
of business practice results from a far deeper clash of cultures,
which in turn hinges on fundamental societal values.
Of
particular interest is the “cross-vergent” framework
for strategic thinking, which prescribes how to achieve optimal
results through a compromise between “Eastern” and “Western” managerial
cultures. The authors should be applauded for taking local
idiosyncrasies seriously when theorising management practices
and strategies among MNCs in Southeast Asia.
The
theme of Western corporate theory facing resistance from local
Asian management is best brought across in the discussion of
organisational downsizing (pp. 61-65) and corporate consolidation
(pp. 95-99). The authors go on to make a strong case for thinking
local and acting local when facing such challenges.
The
book contains a helpful sprinkling of “straight from
the trenches” insights (p. 307) and case studies that
provide a window on what really happens on the ground. These
candid and detailed accounts record the key issues chief executives
typically face in the Asian business environment.
In
the section titled “It’s Your Country”, for
instance, the author posed a problem to local executives. He
faced a period of silence because, as the boss, he was traditionally
expected to know all the answers. He said, “Look – this
is your country and you’ll be here long after I’ve
left, so what do you think we should do?” This struck
a chord and the suggestions that followed were often novel
and surprising. The next question naturally was: “Why
do you think we should do it that way?” This discussion
helped the expatriate CEO learn about local cultures of thought.
More importantly, by involving the local executives, it secured
buy-in from the local management team.
While
this book is a very helpful reference for executives working
in MNCs in Asia,there is perhaps an overstated emphasis on
the battle between “Eastern” and “Western” business
practices without sufficiently examining the validity of these
popular categories, or considering possible commonalities and
convergence between the two.
In
addition, the focus on cultural differences as the source
of the challenges faced by Western companies in Asia appears
stretched. Other important and non-cultural factors – such
as income levels, product life cycle immaturity, fragmented
distribution systems and institutionalised economic and
political norms – are probably more important in
explaining these challenges. Moreover, the experiences
cited tend to reflect mainly the petrochemical industry
and certain Southeast Asian countries, limiting the scope
for broader comparisons. Nevertheless,
this book provides the reader with more than just a glimpse
of the realities behind MNC operations in Asia. It is highly
recommended to any theorist or practitioner seeking to
deepen her understanding of how MNCs are changing, and
being changed by, the Asian business landscape. |
