"In developing economies, we have to reexamine the fundamental
assumptions of what makes a good firm."
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Realigning Priorities
Other participants also remarked that the Asian economic crisis called for a reorientation of research priorities. Although the breakup of large conglomerates or chaebol is now a hot issue in South Korea, said Chang Sea Jin of Korea University's School of Business Administration, little research has been done on them. Hideki Yoshihara of Japan's Kobe University argued that too much academic attention had been paid to Japanese success stories, but not to the limitations and failings of his country's other companies. "It's not enough to do research on the 'can' aspect of Japanese management. There must also be work on the 'cannot' aspect," he said. "We have difficult problems, so this is a good time to do research." Yoshihara's concerns were echoed by Hotaka Katahira, an economist at the University of Tokyo. Years of economic stagnation and generational shifts mean that previous assumptions are quickly becoming obsolete, Katahira noted. "Japanese consumers and the concept of consumer satisfaction are changing," he said. "We need to redefine the model of customer behavior in Japan."
But perhaps the most telling comment came from Trilochan Sastry of the Indian Institute of Management. While noting that HBS-generated research, case studies, and management thinking have "tremendous influence" around the world - possibly more than the School itself realizes - he doubted whether principles and ideas applicable to U.S. companies could always be "taken out of context and dumped into completely different firms" elsewhere. In developing economies, such as India, Sastry reasoned, "we have to reexamine the fundamental assumptions of what makes a good firm." It was a reminder that what's right for America may not make sense in Asia - an obvious point, perhaps, but one worth repeating in any forum on cross-cultural issues.
The second day of the meeting produced equally profitable exchanges. HBS professor Christopher A. Bartlett discussed changing Asian management practices, using Acer as a case study. Stan Shih, who serves on the HBS Asia Advisory Committee, stepped up to share his thinking on a major corporate reengineering he is currently conducting. Other highlights included HBS professor Lynn Paine's presentation on global business values, assisted by special guest Zhang Ruimin, president and CEO of China's Haier Group, a maker of appliances; a briefing by HBS assistant professor Walter Kuemmerle on global research and development networks; Professor Krishna G. Palepu's and Associate Professor Tarun Khanna's thoughts on the restructuring of businesses in emerging markets; and Professor Dwight B. Crane's examination of the Asian financial crisis. The sweeping exchange of ideas prompted Professor David B. Yoffie, conference cochair, to conclude: "There is a need to look for ways to blend Asian and Western approaches."
A Platform for Change
The studies presented in Hong Kong demonstrated why, as Professor Michael Y. Yoshino, HBS director of Research, put it, "the School is a unique place with a unique mission." The School's business, he said, is "creating and disseminating knowledge." And he added: "We seek to contribute not just to business scholarship but also to the practice of management." He noted that when he first joined the faculty nearly thirty years ago, there were only four non-U.S. nationals, including himself, among his colleagues. Now, the cadre of researchers and teachers at HBS reflects the multinational character of the student body. In course development and case-study coverage, "HBS has a strong commitment to international research and the internationalization of the curriculum," Japan-born Yoshino said.
Asia, Yoshino explained, provides an interesting platform for the School's research. "Here, we can test our findings, knowledge, and theories developed elsewhere, as well as define new hypotheses that can be tested in other areas. We haven't just discovered Asia today, but we do need to strengthen our presence and increase our capabilities in this region." A key challenge is to cultivate access and connections to corporations in the region in order to develop case studies. "We must win the confidence of major companies in the region," Yoshino said.
The Hong Kong Research Office with Camille Tang Yeh in charge is already working hard to do just that. "In our attempts to contribute to management understanding and practice in an increasingly global marketplace," remarked Bob Hayes, "we cannot rely solely on the expertise of specialists in a particular region of the world. All of our faculty need to build strong area expertise.
"Much of the recent attention Asia has received has focused on its current problems, rather than its enduring strengths," he continued. "We steadfastly believe that Asia has a bright future and hope to be able to contribute to the rethinking about corporate management in the region." Speaking at the dinner that capped the research conference, Professor F. Warren McFarlan, a veteran faculty member who is now overseeing the operations of the Asia-Pacific project, predicted its impact will be far reaching: "This will be a deeply transforming period for HBS," he observed.
The conference provided a chance for HBS to recognize the enthusiasm and support of many alumni and friends throughout Asia, particularly S.P. Tao, chairman of Shing Kwan Group, who not only provided the School with office space in the Bank of China Tower but has also initiated a major new fellowship program to enable young, entrepreneurial Chinese students to attend HBS; former HBS faculty member and longtime friend of the School Victor K. Fung, chairman of the HBS Asia Advisory Committee; and Singapore's Minister for Information and the Arts George Yeo (MBA '85). "We are absolutely delighted and honored that HBS has chosen Hong Kong," said Tung Chee-hwa, Hong Kong's chief executive, at the inaugural dinner. Fung added, "HBS's choice of Hong Kong gives us incentive to build Hong Kong's resources as a center of learning. Never before has there been such a need for a top-flight research center."
In a final speech to the group, George Yeo praised his alma mater's bold bid to expand. "If an institution stops changing, it dies," he said, hailing Dean Clark as the "leader of the quiet revolution to prepare the School for the next century." In response, Clark declared: "The Asia-Pacific office is something we have dreamed about and worked hard for. HBS is going to be a global institution. We have taken the first few steps. It starts today. It starts here."
"We're in the midst of profound changes that will be of lasting
consequence."