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More and more Asian economies are racing to the top, as the International Monetary Fund’s April outlook projects that India would soon surpass Japan’s fourth place in the global economic order and join China and the U.S. in the world’s top five spots.
On a micro level, individual Asian mid-cap companies, according to an article by Citigroup, are quickly expanding beyond the global manufacturing bases of Japan and China, with their booming factories having a presence in India, Vietnam, Indonesia, Malaysia and Thailand. Additionally, Asian companies are adopting new technologies 8-12 years ahead of the West, according to Citi’s 2023 report.
This rapid growth in Asian businesses is driven by fast-paced innovation and high adaptability, but what truly lies at the heart of these dynamic companies is the fact that, across the board, they practice a business culture that encourages durability and longevity, which is characteristic of traditional and often ancient Eastern values. These unique values, found across the continent, contribute to the fact that many of the world’s oldest, continuously operating companies are actually located in Asia.
As the fourth generation heir of a business that is more than 100 years old in Hong Kong, I believe that learning about aspects of the culture that are practiced across Asia is beneficial for Western entrepreneurs. Here I’ve picked five take-home messages.
1. Balance the Yin and Yang using Daoism
One of the most important business concepts in Asia comes from Daoist philosophy, a Chinese way of life that originated from the sixth century BCE. For entrepreneurs in particular, the concept of wu wei, which translates as “effortless action,” is crucial as it teaches about agility and acting in harmony with the ebbs and flows of the universe. According to this concept, businesses should prioritize efficiency and effectiveness and know which tasks are urgent, instead of taking too much control over every aspect of a company’s operations.
This philosophy also emphasizes the importance of balancing opposite forces, the masculine Yang and the feminine Yin, so they can co-exist in a positive way. In practice, an example can look something like building a business on “masculine” traits such as competitiveness, unwavering focus and risk-taking, and balancing it with “feminine” traits such as introspection, sensitivity and care. Only possessing these traits is not enough, but entrepreneurs will have to learn the art of moving between one faction and another seamlessly, especially when facing challenging market conditions.
2. Practice patience instead of anger
Patience is the virtue of success in many cultures, and this is no different in Asia. An article written for the Australian Institute of Company Directors shows that many successful Indian business leaders believe that using patience to react to a situation that would normally provoke anger is key to achieving progress. This belief is derived from the Bhagavad Gita, an ancient Indian text dating back to the second century BCE, which explains that when a negative event occurs, one must not be bewildered by delusion, which is a reaction that comes from anger. Instead, having a clear mind and controlling one’s reaction to the event will ensure that well-reasoned actions are taken, which will ensure preservation instead of destruction.
Patience will also mean that important lessons can be learned from adverse events, which are normally perceived to be “failures” in business. The Indian way of having a patient mindset is that every failure has the potential to be converted into success, with calm and reasoned thinking instead of reactive impulses that cloud our judgment.
Related: In the Age of Instant, Here’s Why Leaders Must Learn the Art of Patience
3. Understanding the Confucian art of giving face
Many of China’s flourishing businesses follow Confucian values, which originate from the country’s way of life propagated from the sixth century BCE — which remains relevant today. This Chinese social code has also influenced businesses across Korea, Japan and Vietnam. Among the most important Confucian values practiced in Asian business ethics is the concept of giving face, otherwise known as mianzi.
This is the belief that making someone look good, i.e., “giving face,” is key to establishing harmonious relationships between parties you’re doing business with. While protecting your own image is considered to be one of the highest ideals under this belief system, “giving face” to another is also equally as important, by carefully considering their thoughts and showing care. Mianzi is crucial to every business relationship out there, especially where clients and customers are involved, and is key to receiving support from others and achieving longevity.
4. Applying the Buddhist Law of Attraction
Among the most visible principles practiced by Asian businesses is the Buddhist Law of Attraction, which says that our thoughts and intentions shape our experiences and reality. Arising from Buddhist philosophies founded by Siddharta Gautama Buddha in the fifth century BCE India, the Law of Attraction simply means that entrepreneurs should define their businesses carefully and thoughtfully.
A company is seen as more than an organization or instrument set up to make money; instead, it is visualized as an agent that could deliver beneficial effects to the community in which it operates. This is something that my company, the Kowloon Motor Bus Company, especially believes in, since it is performing a crucial service to its customers rather than operating purely as a profit-driven business. If your purpose is clear, then success will follow, is what I’ve learned in my own experience as a business leader.
Related: 5 Things I Learned About Business From an Asian Monastery
5. Learning how “to lift together”
An important aspect of Indonesian and Malaysian business cultures is the concept of gotong royong, which translates as “to lift together,” an ancient principle of communal work and collaboration within a community. This concept originated in the island of Java and has been known and practiced within the Malay Archipelago since the 117th century BCE.
This concept is still practiced today and is a cultural value that creates important cohesion between business partnerships. For example, Indonesian startups have utilized the concept of gotong royong to create strategies where separate businesses come together for mutual benefit instead of competing alone within profitable industries.
More and more Asian economies are racing to the top, as the International Monetary Fund’s April outlook projects that India would soon surpass Japan’s fourth place in the global economic order and join China and the U.S. in the world’s top five spots.
On a micro level, individual Asian mid-cap companies, according to an article by Citigroup, are quickly expanding beyond the global manufacturing bases of Japan and China, with their booming factories having a presence in India, Vietnam, Indonesia, Malaysia and Thailand. Additionally, Asian companies are adopting new technologies 8-12 years ahead of the West, according to Citi’s 2023 report.
This rapid growth in Asian businesses is driven by fast-paced innovation and high adaptability, but what truly lies at the heart of these dynamic companies is the fact that, across the board, they practice a business culture that encourages durability and longevity, which is characteristic of traditional and often ancient Eastern values. These unique values, found across the continent, contribute to the fact that many of the world’s oldest, continuously operating companies are actually located in Asia.
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