Philippe Lasserre

Regional headquarters: The spearhead for Asia Pacific markets

Abstract Firms seeking to develop or enhance their presence in the Asia Pacific region will, at some point, have to address the question of whether or not to set up a regional headquarters (RHQ). The relevance of the regional headquarters issue for companies operating in the Asia Pacific region is heightened by the rapid economic emergence of those countries and the debate over a new regional grouping for the area. This article seeks to contribute to the debate by describing the various roles RHQs can play and assessing their usefulness in achieving corporate ambitions. It is based on empirical data obtained through informal interviews with Western companies, and through a survey conducted by the INSEAD Euro-Asia Centre in the region in 1992.

Joint Venture Satisfaction in Asia Pacific

Entering and developing a presence in the Asia-Pacific region has required, and in most cases, still requires the setting up of joint ventures with a local partner particularly when the prime motive of the operation is to capture opportunities in local markets.The objectives of the research presented in this article are to identify the factors which are associated with a satisfactory perception of joint ventures from the point of view of Western managers and to identify the major differences in joint venture characteristics across countries in the Asia-Pacific region. The conceptual perspective, based on transaction cost theory, is that foreign partners will show satisfaction if joint ventures are instrumental in achieving the Western partners objectives and if co-operation costs are minimum given strategic fit, cultural fit and ability to controlThe analysis, using multiple regression based on survey data collected from 96 Western managers working in the Asia Pacific region, shows the predominance of the cultural and strategic fit factors in explaining the expressed satisfaction of Western managers. The ability to control the joint ventures is not related directly to satisfaction although it is very often quoted by Western managers as an important factor for the success of joint ventures.With regard to differences across regions, there are clearly four categories of countries: the highest expressed satisfaction is found in Japan, then in Indonesia and Malaysia, while China and Vietnam generate a moderate level of satisfaction, and Korea and Thailand a high level of dissatisfaction.

Corporate strategies for the Asia Pacific region

Abstract Western firms need to define very ambitious objectives for developing their presence in the region. Asia strategy is more than the sum of individual countries strategy; it requires specific investment effects to develop human resources, to build assets and competencies. Strategic intelligence and relationships management are the key competencies which are needed. For Western firms it implies a complete transformation of management culture and practices.

Competing in Asia pacific: Understanding the rules of the game

Abstract One of the major issues western companies face when doing business in the Asia Pacific region is how to approach the competitive situation. What are the criteria on which business decisions should be made? And what is the role of government, customers and competitors in the Asian business environment? The INSEAD Euro-Asia Centre has sought to clarify some of these issues by surveying managers working in the region. We first conducted a survey in 1992 and reported the results in Long Range Planning in 1994. 1 We decided in the autumn of 1996 to repeat the survey to see how perceptions have changed. 2 The survey results largely confirm the findings of our earlier study, underlining the continued importance of relationships, the difficulty of making western business rules work, and the need to make long term commitments both to investments and to relationships. In other words, western multinationals and their expatriate managers must alter their western business approach if they are to make the most of Asian business opportunities and adjust the nuances of their Asian business approach to satisfy the special attributes and preferences of each country.

Competing on the pacific rim: High risks and high returns

Abstract Western executives must confront attitudes and behaviour among their business partners in the Asia Pacific region that may differ fundamentally from their expectations. This article considers the premises which top management use to formulate strategies to tackle both the competitive context and the political, ethical, and legal dimensions governing the rules of the game in each country. The real challenge for strategic development appears to lie in the adaptation and transformation of corporate organizational behaviour to admit new complexities. Results of a survey conducted among general managers and marketing managers of Western companies operating in the Asia Pacific region are presented.

Selecting a foreign partner for technology transfer

Abstract This article proposes a method for evaluating the strategy and resources of local and foreign partners in technology transfer based on normal sound management practice. The author has had considerable experience of the process in business ventures in the ASEAN region and has found that not enough time, effort and research is invested in the initial negotiations. He suggests that a year or more should be allowed for the foreign staff to become familiar with the country and the business practices of local companies.

Corporate strategic management and the overseas chinese groups

Overseas Chinese entrepreneurs have been said to possess a certain number of cultural characteristics which inhibit their ability to manage large complex enterprises.Building upon the authors experience in Southeast Asia and upon data collected in six major conglomerates in Taiwan, Thailand and Indonesia, this article discusses some of the organisational mechanisms used by Chinese corporations for their strategic management.The conclusions are that Chinese culture does not apriori create a barrier to modern multibusiness management. Factors other than cultural, such as environmental risks, opportunities and stage of development may explain the strategic management style of Overseas Chinese corporations.

Strategic Assessment of International Partnership in Asean Countries

Partnership under the form of joint-ventures and licensing agreements between a multinational company and a local entrepreneur has become a predominant mode of entry into growing markets of the developing world. This paper illustrates three major issues in the process of building partnerships in the international setting, namely, the strategic perspective of both parties, the selection of partners, and the negotiation of the partnership. Data for this study was drawn from an earlier investigation at the Euro-Asia Center of INSEAD.

The new industrializing countries of Asia—Perspectives and opportunities

Abstract In the aftermath of the 1974–1975 oil crisis, an increasing number of business and government leaders in Europe have advocated a reinforcement of protectionist measures in order to cope with competition from the newly industrializing countries, and in particular from the Asian ‘gang of four’. So far there is no evidence that trade with the NICs has resulted in net losses in terms of employment. The Asian NICs are eager to absorb new technology and to develop their industries towards sophisticated high value added sectors. This creates new opportunities for European companies to export intermediate products, capital goods, and to foster their foreign direct investment in the region.

Why Europeans are weak in Asia— an organizational perspective

Abstract The European business presence in Pacific Asia has been long lasting. For centuries European traders, sailors and warriors have forced their way along the silk road or through the spice islands in their quest for fortune, trading posts or territorial control. Given this traditional interest in the Pacific Basin at a time when the United States was non-existent and Japan was a self-centred feudal archipelago, one could expect that today Europeans would approach the Pacific century with a well established presence, a dynamic perspective and a perceptive savoir faire which would put their companies in a good position for future competitive races. Data do not seem to support this hypothesis. Since the Second World War, competitive positions have deteriorated, investments have lagged behind the United States and Japan and companies have exhibited a marginal commitment to Asia, although in public speeches top executives recognize the need for a presence in the Pacific. This article, based on published data, as well as the authors own research in the region will attempt to provide some tentative explanations for such a weakness.