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AM Lecture 4Management > Asian Management > Culture-organisational background
Culture-organisational backgroundIn both newly industrialised countries and market-socialist economies the government plays a large role in the functioning of organisations, even though they often profess that they are running free, commercial environments. Taiwan's economic development has been export-orientated industrialisation, driven by many Small and Medium Enterprises (SME), or "Laoban". SMEs in fact make up 95% of the industry. SMEs in Taiwan are like CFBs, in that they are family-orientated. They sometimes expand into guanxiqiye, loose business associations operating almost as one entity. Numazaki links the rise of the Laoban to an unfriendly political context, as many of the SMEs are run by people who have come from mainland China, who have had negative experiences in Taiwan as a result of being foreign. There was a lot of political instability in the 1950s to 1970s created by martial law, but which was stabilised by a repressive government actions. The Chinese were marginalised by new legislation, which encouraged a low-trust society. The Laoban then avoided markets dominated by the government and went into production and sales of petty consumer goods.
Internationalisation of Taiwanese firms
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