The past 30 years have been a wild ride for Asia, with China’s hyper-growth fueling both domestic and global ambitions. From low-cost simple manufacturing to leading-edge innovation and venture capital, China has not only been a modern success story but also raised the tide for all nations in the East.
The spillover from China’s growth has spurred a vibrant business growth culture in many nations, with industrial and retail evolution in Malaysia, the Philippines, Indonesia, Vietnam and Cambodia growing rapidly.
However, as you plunge into these exciting markets, remember that human engagement hasn’t evolved as fast as the rising factories and growing economic power. There are still very basic differences in how people conduct business that haven’t changed much in the past 100 years.
Here are a few things to keep in mind about Asian businesses:
Opinions are not shared directly
In the West, we speak our mind and get down to the facts and figures of a deal.
People in Asia are more likely to be oblique and indirect in expressing unhappiness, often softening the blow with transitional phrases like, “We will have to study this more carefully.” They are really telling you that the deal on the table won’t work. You need a new proposal.
The boss in Asia really is the boss
Top leadership in many Asian firms is tightly controlled and even in large companies is still highly influenced by family connections.
While you may make strong points on your suggested business deal with a manager or business development person, never forget that there is often only one vote that counts. Your strategy has to be to figure out who is most senior and engage that person and their interests.
Connections are not linear
When we try to make connections in the U.S., we think of relationships as straight-line. We assume finance people will connect with other finance people and the same for operations and manufacturing.
I have found that in Asia, the rapid regional growth with limited human resources has moved people into many diverse places. If I am looking for a specific connection, I tell all my contacts since you never know how wide their network may be.
Sometimes the answer to a problem is not a solution
The Western business model thrives on facing problems head-on and crafting solutions. This behavior with an Asia partner might strike them as confrontational or too aggressive.
When challenges do arise, I have seen Chinese or Malaysian partners simply choose ignore it for a while. Sometimes the problem resolves itself with the passage of time and subtle staff changes. Often, quiet behind-the-scenes diplomacy and a gentle nudge in the right direction is a better path than “getting it all out on the table.”
There are many ways to be prosperous in Asia and just as many ways to fall flat. While you’re working on the technical details and the financial model, never forget that the way you communicate may have even more impact on getting your deal to mutual success.
David Iwinski Jr. is the managing director of Blue Water Growth. A global business consulting firm with extensive experience and expertise in Asia, Blue Water Growth services include merger and acquisition guidance, private capital solutions, product distribution, production outsourcing and a wide variety of business advisory services for its Western and Asian clients.
