Book Reviews
Winning in Asia: Strategies for competing in the new millennium
Williamson, Peter J
ISBN: 0-875846-20-3 2004 HB; 256pp pages Harvard Business School Press
Pamela Mathews
School of Commerce, Charles Sturt University, Wagga Wagga NSW
The collapse of Asian businesses in the late 1990s rocked the world and resulted in significant changes to how businesses in Asia operate and how western businesses approach investment in Asia. 'Winning in Asia tomorrow', Williamson states, 'will require Asian companies to combine their traditional strengths with the best business practices from around the world to create new and distinctive Asian multinational companies' (p.1), and 'to develop and implement these kinds of strategies requires much more than the absorption of new technologies and skills. It demands fundamental changes in yesterday's mind-sets, organisational structures, and management processes' (p.3).
Such a radical change requires an examination of past practices; both good and bad. Williamson begins his analysis of future business strategies in Asia by considering how business decisions, such as investment, have traditionally been made in Asia. He reflects upon the strengths and weaknesses of these approaches, and how they may have contributed to the decline of so many firms. This view is supported by Ahlstrom and Bruton (2004:11) who rather concisely describe the causes of the Asian business crisis as market failure, institutional failure and strategic failure - three very comprehensive phrases.
However, Williamson sees the problems in Asia from a broad perspective that incorporates strategic, financial, attitudinal and cultural issues. Problems associated with rapid economic growth, business monopolies, investment approaches and understanding of the market have been discussed within the early part of this book, and whilst many of these are characteristic of the Asian approach to business and may require some adjustment to traditional thinking, Williamson argues that there are also many positive aspects to be gleaned from Asian heritage and tradition. Meeting the challenges of the future may require discarding some practices, but keeping others. For example, the future strategies adopted in Asia will benefit greatly from the Asian ability to learn fast, to respond to new opportunities quickly, the tradition of service delivery, the commercialisation of new technology and ideas, and the ability to align corporate strategies with government economic and social goals. Therefore, Williamson (p.32) argues that 'The winners in tomorrow's Asia will be companies that are able to combine traditional Asian strengths with the best business practices that the rest of the world has to offer'.
Winning in Asia: Strategies for competing in the new millennium, presents one perspective on the Asian business crisis, and Williamson attempts to paint a picture of Asian businesses in the future by examining the challenges businesses face, and the new and different approaches they might take to re-build. Having established the background to creating successful turnaround Williamson makes a number of predictions about how Asian businesses will change their approach to regain, build and maintain market position. Chapters examining issues such as building productivity, innovation, branding, creating multi-nationals and consolidation offer some useful insights into how the business environment within Asia has changed and the direction future changes may take. However, these changes will take time and will not be easy. To successfully move Asian businesses in the direction proposed by Williamson will require a change to the general strategic mind-set of most CEOs, a re-examination of structural and management processes, and a willingness to adopt models and practices from outside their comfort zone. Ahlstrom and Bruton (2004:9-11) argue that attention must also be given to the traditional Asian views regarding fear of failure/low risk-taking, family ownership, and the low levels of regulation and monitoring of business practices. However, they also caution against the automatic adoption of successful Western turnaround approaches because these need to be adjusted to take into account the differences in culture, institutional environment and implementation strategies (Ahlstrom & Bruton 2004).
Williamson's experience researching, and consulting with local Asian companies, governments and multi-nationals is clearly reflected in this book. Williamson has provided a comprehensive look at the Asian business approach and some valuable insights into the potential development focus of Asian businesses. The many examples from local Asian firms used to illustrate his argument serve to reinforce his perspective and prognosis for the Asian business scene. Through an appreciation and understanding of how the new Asian firms will compete in the future this book is essential reading for managers wishing to do business in Asia - both Asian and Western.
References
Ahlstrom D and Bruton GD (2004) Turnaround in Asia: Laying the foundation for understanding this unique domain, Asia Pacific Journal of Management 21(1-2): 5-24.
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