Differences and Similarities of Business Systems in China and Japan

750 Words2 Pages

Summary

By utilizing institutional matrix, this paper explains how different factors in each country interact with one another and how those factors consist the business system in China and Japan. Moreover, this paper also compares the differences and similarities of business systems in China and in Japan.

Business System

In order to understand the business system, we need to look at the most important component, the people, first. After recognizing the pattern of individual activity, we can apply this pattern in a broader sense and understand the system as a whole.

Japanese people tend to be more collectivistic than Chinese. Historically Japan and China had ruled under the idea of Confucianism, which stresses the importance of conformity and collectivism. Japanese people inherited the collectivism while Chinese people took the conformity. The idea of collectivism have been taught during education in Japan, while having some benefits, this idea made Japanese people lack of critical and creative thinking. Further, because of the high competitiveness in the lobar market, get in good companies is difficult. In order to be haired in good companies, one need to get in certain favored university, and in turn get in good university manes one has to get in some certain high school. This system shaped the education system in to test oriented, meaning that the score is the primary concern for Japanese schools, parents and students. This orientation hence lead to a lack of challenging the routine (lack of creative and critical thinking).

Unfortunately, we can also see the same pattern in China's education system and lobar market. Chinese students are also face severe competition, education system is ever more test oriented in China ...

... middle of paper ...

... economic downturn (Wartzman, 2009). These measures increases the loyalty of employees and also formed their identity, Japanese workers often refer to themselves as a “company man”.

Individualism dominates China, and company exists purely for profit. People rarely identify themselves as a company man. In most Chinese people’s mind, family is the most important.

Moreover, a long-term viewpoint dominates the Japanese business world, firms, banks, and shareholders (mainly institutional shareholders like pension management programs) do not only looking at the current figures like cash flow or the profit, rather, they tend to focus on the long term returns of the business. Since major keiretsu is publicly traded, a cross-shareholding system is developed for the greater good, a company hold another companies share for a long time, and prevents hostile takeovers.

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