Abstract
The culture space in which a company conducts transactions reflects the
extent to which information is codified and widely diffused. Widely
diffused information and well-defined laws define a market culture, for
example. Other types of defining cultures include the bureaucratic
(China before reforms), the clan (strong in Japan), and the feudal. With
poor or no codification of laws and weakly diffused information, key
individuals can wield much power in their feudal areas. Ironically,
China's reforms, which devolved power from its central government to
provinces and localities, have fostered a feudal-type of culture.
Seemingly arbitrary rules, regulations, taxes and fees, often directed
at foreign enterprise, can seriously disrupt a business unless it takes
steps to understand and work with its local social and power structure.
Original language | English |
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Pages (from-to) | 4-13 |
Number of pages | 10 |
Journal | SAM Advanced Management Journal |
Volume | 68 |
Issue number | 3 |
Publication status | Published - Sept 2003 |
Keywords
- China
- Feudal
- Governance
- Institutional theory
- Transaction costs
- Culture space