Chinas Business System
"Chinese and Indian Business Systems: Divergent in the midst of Global Trends "
Associate Professor Richard Grainger Professor Samir Ranjan Chatterjee Curtin Business School
Introduction It is clear that China and India, in terms of geography, population size and regional cultural influence, are currently the most important nations in Asia. Both have experienced consistently high economic growth rates over recent decades, a fact which is made all the more notable by the size of their respective populations. This economic expansion is widely predicted to continue for some years, and it is assumed that these two nations, considered either separately or together, will have an outstandingly significant global and regional impact in the twenty first century.
Despite the influence of apparently convergent global trends, divergent managerial assumptions and business practices in these two nations are emerging. The current paper utilises an adaptation of Redding's (2005) comparative business systems model, adopting the premise that cultures underpin socially embedded economic institutions, and in turn, that institutions underwrite governance models, inter-firm networks and alliances, and approaches to corporate management. Within the considerable constraints of this relatively short document, and following a brief background to the economic potential of China and India, a tentative, summary outline and comparison of the contemporary business systems of these two critically important Asian nations is presented.
1
The Economic Rise of China and India In terms of geographical scale, population numbers and regional cultural and economic influence, in the current era China and India clearly stand out amongst Asian nations. The most obvious aspect of this feature is that China and India, which are the world's two most populous nations (jointly accounting for about forty percent of the world's population), are also the two fastest growing economies in the world
Associate Professor Richard Grainger Professor Samir Ranjan Chatterjee Curtin Business School
Introduction It is clear that China and India, in terms of geography, population size and regional cultural influence, are currently the most important nations in Asia. Both have experienced consistently high economic growth rates over recent decades, a fact which is made all the more notable by the size of their respective populations. This economic expansion is widely predicted to continue for some years, and it is assumed that these two nations, considered either separately or together, will have an outstandingly significant global and regional impact in the twenty first century.
Despite the influence of apparently convergent global trends, divergent managerial assumptions and business practices in these two nations are emerging. The current paper utilises an adaptation of Redding's (2005) comparative business systems model, adopting the premise that cultures underpin socially embedded economic institutions, and in turn, that institutions underwrite governance models, inter-firm networks and alliances, and approaches to corporate management. Within the considerable constraints of this relatively short document, and following a brief background to the economic potential of China and India, a tentative, summary outline and comparison of the contemporary business systems of these two critically important Asian nations is presented.
1
The Economic Rise of China and India In terms of geographical scale, population numbers and regional cultural and economic influence, in the current era China and India clearly stand out amongst Asian nations. The most obvious aspect of this feature is that China and India, which are the world's two most populous nations (jointly accounting for about forty percent of the world's population), are also the two fastest growing economies in the world