Culture and Business Practices in Asia Response Essay

The Summary of the Article

The article Conflicting Imperatives in Modern Thailand written by Phillip Niffennegger, Songpol Kulviwat, and Napatsawan Engchanil (2006) is aimed at discussing the ways in which the cultural values of Thai Buddhism interact with western worldviews and principles. They authors highlight the differences between these ideologies. To some degree, these discrepancies can hinder the economic development of this country.

The scholars examine a set of different characteristics that distinguish Thai people from people living in the United States or Europe. Much attention is paid to uncertainty avoidance, power distance, or individuality. Additionally, Thai people attach importance to spiritualism, instead of material attachment (Niffennegger, Kulviwat, & Engchanil 2006, p. 404). This attitude is not widespread in western countries.

Apart from that, Thai entrepreneurs emphasize the role of trust in business relations, while managers, who work in advanced capitalist countries, pay more attention to contracts and governmental institutions that can enforce agreements (Niffennegger, Kulviwat, & Engchanil 2006, p. 404). Apart from that, there is a peculiar approach to corporate social responsibility in Thailand.

For instance, Thai managers focus on the preservation of jobs, while western executives concentrate on the efficiency of enterprises. Therefore, one can speak about different expectations or standards that can be set for businesses. The scholars argue that in Thailand there is a “conflict between old and new values” (Niffennegger, Kulviwat & Engchanil 2006, p. 407).

This quote means that Thai people, especially young generations can attach importance to such things as individual achievement, or material prosperity. However, they can also be affected by such principles as a strong sense of hierarchy as well as avoidance of various conflicts. This is one of the main points that researchers make.

To a great extent, this situation can be explained by increasing process of globalization, and the flow of capital and ideas from one country to another. The authors note that the business culture of Thailand can be successful provided that there is a “confrontation and compromise” between traditional Buddhist values and Western principles (Niffennegger, Kulviwat & Engchanil 2006, p. 415).

Moreover, these differences should be taken into account by companies that want to operate in this country. Entrepreneurs, who come from the United States or Europe, should learn more about the attributes of Thai business Culture.

In particular, one should remember that Thai business executives attach importance to long-term, rather than short-term results. Furthermore, such a quality as devotion and loyalty play an important role in Thai business ethics. These are the main issues that should be considered by the readers of the article.

Personal Response

Overall, the authors provide insightful comments about the way in cultural values manifest themselves in the business practices adopted by various companies. The most important point is that cross-cultural differences can lead to difficulties related to communication and decision-making. This issue becomes extremely relevant in the globalized world.

For instance, Asian companies pay more attention to ritualistic aspects of relations between people in organizations. The failure to consider this issue can significantly hinder the performance of an organization (Ardichvili, Jondle & Kowske 2010).

This is why the article written by Niffennegger, Kulviwat, and Engchanil can have profound implications for entrepreneurs, especially those ones who intend to operate in Asian countries. This is one of the main points that can be made.

Nevertheless, there are significant implications that should not be overlooked. The authors of this article believe that the differences between Asian and western values can prove to be a significant obstacle for the development of businesses. However, they rely only on the experiences of a single country. It should be kept in mind that such a country as Japan is also affected by Buddhist values.

For instance, in Japan, managers also attempt to avoid conflicts and confrontation (Iwamatsu, Akiyama & Endo 2008, p. 125). However, these organizations are often praised for their efficiency and innovation. This is one of the inconsistencies that should not be overlooked.

Additionally, it is vital to mention that writers do not refer to empirical studies which can highlight the differences in business cultures that are established in Thailand or western countries. This is the main limitation that can be identified. Apart from that, the scholars do not pay sufficient attention to such a criterion as the attitude toward change.

Researchers note that Thai people are more likely to resist change, and many entrepreneurs face significant difficulties when transforming the policies of businesses (Andrews & Chompusri 2001, 77). This issue is critical for understanding the peculiarities of business culture in Asia.

Yet, these limitations do not undermine the value of the article examined in this paper. The scholars identify a very important difference in the business culture of various countries.

This distinction should not be overlooked by managers who attempt to introduce new business practices in Asian countries. Moreover, some of the suggestions offered by scholars can improve the organizational performance of Thai companies. This is why the arguments expressed by these scholars should not be disregarded.

References

Andrews, T. G., & Chompusri, N 2001, ‘Lessons in ‘Cross-Vergence’: Restructuring the Thai Subsidiary Corporation’. Journal Of International Business Studies, vol. 32, no.1, 77-93.

Ardichvili, A, Jondle, D, & Kowske, B 2010, ‘Dimensions of ethical business cultures: comparing data from 13 countries of Europe, Asia, and the Americas’, Human Resource Development International, vol. 13, no. 3, pp. 299-315.

Iwamatsu, J, Akiyama, T, & Endo, K 2008, ‘Construction Claims and Disputes and the Business Culture of Construction in Japan’, Journal Of Professional Issues In Engineering Education & Practice, vol. 134, no. 1, pp. 119-127.

Niffennegger, P, Kulviwat, S, Engchanil, N 2006 ‘Conflicting Cultural Imperatives in Modern Thailand: Global Perspectives’. Asia Pacific Business Review, vol. 12, no. 4, pp. 403-420.