Unit 2 / Learning environment 4

Essential reading

Business culture of Asian emerging

economies

Index

1 The importance of cross-cultural literacy

2 Asian social structure

3 Japan’s business etiquette

4 Korea’s business etiquette

5 Taiwan’s business etiquette

6 Singapore’s business etiquette

7 Hong Kong’s business etiquette

Key words: Asia, cultural literacy, business etiquette, social structure

1. The importance of cross-cultural literacy
It’s clear how disparities in economic and political systems somehow influence the development
processes in different countries of Asia. This reading explores how differences in cultures not only
between but also within countries often have a direct relation with business atmosphere.

To recognize the importance of cultural differences when you are doing business, is fundamental to
comprehend the several habits and notions of the way that people interact through their own system
of values and norms constituted by their closest group. By doing this, misinterpretations can be
avoided and the results in a professional atmosphere will turn out as expected.

A major issue that some thinkers draw attention to is globalization and its modernizing role of blending
practices and creating an almost generic business style around the world. However, the multicultural
structure people live in, their beliefs on what is good, right, desirable, and the guidelines prescribed for
an appropriate behavior still depend on each society and their historical processes, as well as on their
emotional components and education.

Cultural literacy is a tool that helps the successful interaction with people from any country, it
promotes the creation of a broader perspective and it also allows to evaluate the different aspects
of every society, specifically regarding business. This facilitates the deconstruction of an important
matter that affects daily life: prejudice, and it leads to the development of communication skills in
order to give a correct interpretation to other people’s words and actions. Therefore, heightening the
communication skills of professionals and their continuous learning of other cultures is essential and
mandatory for the good development of relations with other people across countries.

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2. Asian Social structure
When referring to the concept of social structure it is imperative to mention the basic social
organization of a community, and even though this term consists of several aspects, there is one main
dimension that particularly explains differences between cultures and proves that there are some
historically constructed features that weight the most in the process of shaping an individual’s manner
of conducting. This dimension, which is called the degree of organization, has two opposing types,
and the way people from a culture decide whether to adopt one or the other strongly depends on the
conventions accepted and followed by the person’s community.

The first type of social organization is the individual, the absolute opposite to the second type, which
includes a collective perspective of arrangement: the group. In general, societies in Western countries
tend to maintain the primacy of the individual, inasmuch groups are the most important entity in
other societies, like in most Asian countries.

The individual, or individualism as a whole philosophy, has been adapted as the basic block of creation
of social organization. This is not only echoed in the organization of society, or in the way people
relate to each other in social and business scenarios, but also in an economic and political organization
of a community. Countries that have this system consistently emphasize in the achievements
of individuals and in individual performance rather than creating a social standing point in which
collective achievement is highlighted. As previously mentioned, countries in the Western hemisphere
often define their individualism as the most effective way to behave and interrelate in their societies,
their traditional conduct leads them to think of themselves first and to communicate in a way in which
individualism is predominant in people’s relationships.

Contrary to this, Asia has seen the group as the primary unit of organization. Asian societies grant a
social status to a person depending on the standing of the group to which he or she belongs, formerly
it was determined by the family each person belonged to, however nowadays it is more about the
business organization the person is part of.

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Scholars have even emphasized on how language highlights and enforces these differences between
cultures. An Asian person, when introducing him or herself, will naturally focus on speaking about the
institution he or she belongs, rather than his or her occupation. It is more likely than before saying “I
am an engineer” or “I am a lawyer”, Asian people introduce themselves with a sentence such as: “I
am from X company”. Although diversity has been previously established as a clear feature of Asia, it
is interesting to recognize that the importance given to group membership is one characteristic that
prevails in most Asian cultures. A solid identification with a company, for example, allows benefits
related to a collective sentiment from the individuals, which subsequently creates incentives to work
together with his or her colleagues as a group and for the sake of common good.

Important insights suggest that the success of Japanese businesses, for example, is not merely based
on their economic behavior, but on their ability to accomplish strong cooperation between individual
employees and within and between companies too. Every time insisting in the need to strengthen the
performance of the group or the firm, it stimulates individuals to think collectively. This identification
with groups also explains the value of stability and the fact that Asian employees do not tend to
move from one company to another in a never-ending search for a better workplace. Instead, they
encourage lifetime employment, improving the construction of knowledge, continuity and experience
in the companies.

3. Japan’s business etiquette

"A traveler without observation is a bird without wings”

Saadi, Persian poet (1210-1250)

Since every etiquette is a product of the construction of a country’s both history and culture, learning
about it and relating to people by using their customs provides a deeper insight of their personalities
and uniqueness. A person interested in working closely with someone from a different country should
always consider the knowledge about etiquette and cultural traits as a must before approaching them,
especially if these people belong to a continent with so many distinctive traits as Asia.

For the specific case of Japan’s etiquette, two main features are strongly linked and ultimately are the
basis of the development of costumes in Japanese interactions with the rest of the world. These traits
are their native religion named Shinto, and the constant representation of maintaining harmonious
relations with people, the environment and the cosmos.

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Shinto is basically a devotion to nature and to every spirit it contains. Japanese tend to believe that
the world is habited by innumerable gods that are in everywhere, therefore they reverence them
all through maintaining a harmonious behavior, modeling the conduct of people. Attitudes like this
are what shape the character and personality of people in every culture, this process is experienced
by countries around the globe in their own manner, with their own moving forces and with specific
results, defining the norms by which others should approach them.

Figure 1. Torii (Shinto´s symbol) in front of a Shinto temple

Source: Mrsiraphol (2017)

Another key developmental force in the Japanese culture was the influence brought by the Chinese
society through its customs and philosophies. China and its three millenniums of history has a
very refined culture which one way or the other has influenced its neighboring countries. China
contributed too many civilizations, but essentially Japanese culture was the one directly shaped by
Chinese powers. Different techniques in art and writing, as well as philosophies and even medicine
have served as a model for the Japanese culture.

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Japan is as country of many faces and with the very rapid growth in the past years has developed quite a
unique lifestyle for its people. There is often an emphasis on the patience and gentleness that consequently
reinforce other Japanese traditional values. Besides harmony and group orientation, values already
mentioned as inherent in this culture, another crucial element for this society is politeness. This characteristic
reflects the way in which Japanese people’s sensitivity forges attitudes towards foreigners and the group
they belong to, thus it is unlikely to see a Japanese person openly disagreeing or voicing opinions that create
tension. As a result, Japanese try to project the best image of themselves so in their interpersonal relations
other people’s perception about them enhances their position.

When addressing someone from Japan, it is necessary to use the adequate formal titles and in no
way use their first name if it is the first time you meet him. Also, many Japanese have adopted the
handshake from western societies as a way to greet. However, bowing prevails as a more formal and
respectful way of approaching a person.

Some basic features of behavior that disturb a Japanese person are yawning and chewing gum in
public. Also, it is a custom that they sit with their knees or ankles crossed, but in no way with one
ankle resting on the other knee, this applies for men and women.

Whenever a visit is scheduled, it is expected that people call their host before arriving in order to give
them a warning, even if they were invited. And small gifts such as food or sweets are well received
when someone is visiting a Japanese’s home for the first time.

Japanese often avoid being direct or honest about delicate topics, their negative decisions are
delivered discreetly and the fact that they always smile throughout a conversation does not imply
their joyful nor their agreement with what the other person is saying, but it rather exemplifies the
politeness which is present in their daily relations. Also, being directly critical or pointing out a mistake
someone has made could lead to a misunderstanding since Japanese take criticism very personal.

One common mistake western people make is to assume that when Japanese people nod their head it
means they are agreeing to what they hear. It is pertinent to highlight that the main reason Japanese
do this action is to acknowledge what someone is saying. It is primarily a gesture that again shows their
politeness, not agreement.

Regarding the field of business specifically, for the Japanese time is a very important matter.
Therefore, punctuality is always a must, and being late is an act of rudeness. When entering a room,
you are expected to greet everyone in the room individually, and when receiving a business card, it is
necessary to hold it with both hands to show respect.

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Traditionally, by the moment of doing business, it is correct to allow for a few minutes of conversation
and social interaction before getting into the matter. Westerners should refrain from interrupting
someone when speaking, since it is considered as something rude and intrusive.

Last but not least, Japan is for its visitors a representation of both worlds: tradition and vanguard.
The country is one of the most advanced in terms of infrastructure and technology, but their cultural
approach is still that of traditional hierarchical structures, shedding a light on the care people must
have when approaching their culture and the effort to be made when doing business with them.

4. Korea’s business etiquette

Korean population considers one aspect as central in the influence on their behavior and thinking. This
is a concept called “face”. Asian cultures in general tend to bear in mind a person’s reputation, their
honor and dignity as well as any behavior or circumstance they consider “shameful”, such as a divorce,
unemployment, poverty and so on. The best way to show someone you respect and admire him or her
is through compliments which is called “giving face”.

Just as Shinto in Japan, Korea enjoys a wide range of Confucian traditions that emphasize their
respect for authorities and older people through religion. This also places education as a basic mean
to be a respectful member of society. Given their Confucian influence, it is normal that Koreans
establish relations based upon education, position, status or even age. Thus, these aspects tend to be
the pillars of the hierarchical structure they create inside their communities.

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Figure 2. Korean culture.
Source: Petukhova (2019).

In this country, it is also usual to bow as a sign of greeting just like in Japan, and in business
interactions require a deeper bow. The deeper the bow, the more polite people consider the greeting.

One aspect in which Koreans differ from Western society is the relatively low importance given to
gestures of courtesy to other people, such as holding a door open or apologizing if they bump into
one another on the street, a behavior that might seem rude to most westerners. However, they
believe this type of incidents do not require an apology, since it is not a disrespectful action nor they
give importance to them.

Although it is well-known that Japanese culture has influenced in some ways Korean culture, it
is imperative to avoid parallels and comparisons between these two countries. Koreans like to be
acknowledged for their uniqueness and they despise to be associated with other Asian cultures.

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Regarding business, Koreans appreciate punctuality and they strongly consider receiving and giving
business cards as a respectful gesture to indicate politeness towards people. They often receive the
cards with their both hands and with the right one in a sign of detail, receiving it with your left hand
denotes uninterest and impoliteness.

Finally, Korean people tend to be very competitive, they avoid defeated and in business they require
the assurance and reassurance that the main goal of the negotiation is a win-win situation, otherwise
they see meetings as a defeat. In this sense, Koreans are known for easily breaking relations if they
find a better deal or arrangement with another company. However, if the outcomes are satisfactory
to them, it is expected that Koreans work hard towards the maintenance of a very good relationship
with their partners.

5. Singapore’s business etiquette

This city-state has had a very important role in trade and the formation of relations between the West
and the East during the 19th century. This former British colony is considered to be one of the most
westernized countries in Asia.

Figure 3. Singapore.
Source: Volz (2019).

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Harmony is a guiding philosophy that affects many aspects of these societies, especially the ones of
family and business. For the people of Singapore harmony is a crucial element for greater productivity
levels and stability. A clear example is the harmonic lifestyle of many ethnic groups that inhabit the
island in peace. Concern over the other is a trait that of this population, which is visible even in the
way they speak. Just like Colombians greet with a “How are you doing?”, Singaporeans tend to greet
by saying “Hello, have you eaten yet?”, a customary question that serves for the purpose of implying
esteem for the other.

Given the ethnic diversity of this country, it is not quite clear which type of gift is better accepted
than the rest. Therefore, it is mandatory to become familiar and do research on the type of gifts that
are the most common to each person. Color of the package also influences the reaction of the gift
receiver, both Koreans and Singaporeans tend to think of colors such as black and white as mourning
colors or colors that represents death. For Chinese Singaporeans, it is polite to reject a gift before
receiving it at least two times, as it shows modesty and decorum.

When in a conversation it is important to ask as many questions and in several ways as possible in order to
avoid a vague response, which comes to show the precision by which Singaporeans are often characterized.

This population avoids any type of public display of disgust or anger, they see shouting as an
embarrassing act that could lead to the “loss of face” in someone else’s eyes. They also avoid
challenging authorities and it is required to let them know it is ok to ask questions. Something that
separates Singapore from other nations is the fact that negotiations develop very slowly, that is why
patience to complete business protocols is required.

6. Taiwan’s business etiquette

This island has a differ from the rest, due to the constant tensions of the misrepresentation by the
People’s Republic of China. Taiwan island has consistently declared itself as separate state, but China
does not recognize it a and it keeps the island on a short leash.

Taiwanese population shares the thought that their territory depends on China, but opinions among
younger generations differ and reflect a generational gap that perceives Taiwan as an independent
land. This generational gap is also visible in the shift from a collectivistic social system to a more
individualistic one.

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This is often attributed to an influence form the West. Also, younger generations are enjoying
freedom of choice regarding several topics such as marriage and sometimes education, which also
makes the structure of society to evolve in a very different way.

Just like Japan and Korea promote values like harmony, Taiwan has Guanxi, which represents the
relationships or the system of social network that usually facilitate both business and other matters.
Different to other Asian states, Taiwanese people do not tend to expect foreign people to follow their
customs and they do not often smile when greeting. Another difference to western behavior is the
topic of money. In Taiwan this is a commonly discussed issue, and people might ask about wealth or
the cost of your belongings or the amount of money you earn, something that is seen offensive in
Western cultures.

Figure 4. Map of China showing the island of Taiwan

Source: Politécnico Grancolombiano

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7. Hong Kong’s business etiquette
This territory is also part of China even though it enjoys a whole different degree of autonomy from
the mainland compared to Taiwan. It is considered as one of the biggest financial centers in the
world and its population is one of the most highly educated. Class and status in this territory is often
determined by wealth and influence. The level of education and languages proficiency also influences
the social standing of a person.

Hong Kong, although highly influenced by Western societies, has a very collectivistic sense in which
individuals consider themselves as part of a group and not a separate entity.

The West influence has resulted in the adoption of the handshake as the greeting standard. And the
Asian influences can be seen in the behavior towards criticism and the public display of anger. The
assumption that both Hong Kong and China have the same customs is a narrow perspective that does
not allow to perceive the customs of two different cultures.

The region is highly known for its economic efficiency and its investment in information and technology.
Hong Kong promotes concise information and a long-term approach to business relations.

Figure 5. Map of China showing Hong Kong location

Source: Politécnico Grancolombiano

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 In summary…
The different assumptions that Western societies have regarding Asian cultures
have been identified, and a further analysis has revealed that each state has its
own set of characteristics and social structure.

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References
Australian Bureau of Statistics. (2017). Census 2016, Country of Birth of Person by Sex (SA2+).
Retrieved from http://stat.data.abs.gov.au/Index.aspx?DataSetCode=ABS_C16_T06_SA

BBC. (2011). Shinto at a Glance. Retrieved from http://www.bbc.co.uk/religion/religions/shinto/

ataglance/glance.shtml

Bullock, B. (2016). How do Japanese names work?. Retrieved from http://www.sljfaq.org/afaq/

names-for-people.html.

Central Intelligence Agency. (2017). The World Factbook: Japan. Retrieved from https://www.cia.
gov/library/publications/the-world-factbook/geos/ja.html

COMMISCEO Global. (2016). Japan Guide. Retrieved from http://www.commisceo-global.com/

country-guides/japan-guide

Department of Immigration and Citizenship. (2015). Community Information Summary: Japan-born.

Retrieved from https://www.dss.gov.au/sites/default/files/documents/02_2014/japan.pdf

Donnellon, E., Lazos, K., & McConnell, C. (2001). Japan: Communication Within Family Contexts.
Retrieved from http://acad.depauw.edu/~mkfinney/teaching/Com227/culturalportfolios/japan/
familycontexts.htm

Everyculture. (n.d.). Japan Retrieved from http://www.everyculture.com/Ja-Ma/Japan.html.

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Figure references
Mrsiraphol (2017). Untitled [photography]. Retrieved from https://www.freepik.es/foto-gratis/
religion-tokio-manera-templo-hito_1090700.htm#page=1&query=torii&position=12

Petukhova, K. (2019). Untitled [photography]. Retrieved from https://unsplash.com/photos/

SahEnZR5Ni8

Volz, T (2019). Untitled [photography]. Retrieved from https://www.pexels.com/photo/gardens-by-

the-bay-singapore-1842332/

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 TECHNICAL INFORMATION

Module: Cultura y Economía Regional de Asia

Unit 2: Economic patterns for development and business
culture of Asian economies
Learning environment 4: Business culture of Asian emerging
economies

Author: Juliana Correa

Pedagogical Advisor: Adriana Alexandra Bolaños Contreras

Graphic Designer: Eveling Peñaranda
Assistant: Laura Andrea Delgado Forero

This material belongs to Politécnico Grancolombiano

Its partial or total reproduction is prohibited

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