Compare and Contrast Japanese and Chinese Business Systems

1.0 Introduction (361 words)

This essay will attempt to demonstrate the main similarities and difference between business systems of Japan and China.

According to Whitley (1998), business systems are distinctive configurations of firms and markets, which have become established in particular institutional contexts as the dominant ways of structuring economic activities (Whitley, 1998, pg214). Each system is also dependent on the ”forms of capitalism” a country adopts (Whitley, 1998, pg214). In the case of Japanese versus Chinese, Whitley (1991) argues that unlike their Anglo-Saxon counterparts, business systems in Asia Pacific are bound to differ “more sharply” between nations and cultures (Whitley, 1991, pg777). However the influence of Confucianism on both East Asian states has brought along much similarities as well.

There are several key factors that influence a country’s business system but Whitley (1991) argued that significant historical developments since pre-industrial Japan and China remains key to some of the systems still in place today (Whitley, 1991, pg777).

A similar view is held by Dore (1973) as he argues that “continuing cultural predispositions of the two peoples which have remained relatively consistent since pre-industrial times” – this referring to the case of the Japanese against the British, constitutes much to the reasons behind Japanese systems today. He furthers adds, “the stirring and spicing and baking process of industrialization may have been the same in both cases, but if you start off with a different cultural dough you end up with a different social cake” (Dore, 1973, pg981) This viewpoint is one that can be used similarly while comparing the Chinese and the Japanese.

Despite the deep consideration of pre-industrial developments as an explanation to the constitution of business systems, the events which has unfold in the post-war era such as Mao-ist communism on China and American occupation on Japan has also constituted to...