Asian Post-crisis Management : Corporate and Governmental Strategies for Sustainable Competitive Advantage

A decade ago, a writer from Fortune magazine wrote in the preface to Kim Woo Chong's book, Every Street is Paved with Gold, that Kim, the Daewoo empire's founder, "personifies the drive and imagination that makes East Asia a dynamic center of economic growth." Kim fled South Korea in late 1999, shortly after his empire crashed. From his initial exile post in Frankfurt, he submitted his resignation from all the Daewoo group's companies. He has left no clue about his whereabouts since then.Kim Woo Chong's meteoric rise as one of Asia's most powerful tycoons, and his equally spectacular fall, symbolize the Asian miracle and the prolonged crisis that threatended to destroy it in 1997 and that still hangs over the economic landscape. The system's flaws became apparent in mid-1999, when Kim acknowledged that his companies, which had acquired a global reach in a debt-fueled expansion binge, could not pay their creditors. By the time the banks that took over the Daewoo group had calculated $80 billion in liabilities, Kim was changing addresses in Europe. For Asia, lessons from the crisis indicate that traditional methods of operation through debt financing and over-investing will fail. This lesson and others are explored in Asian Post-Crisis Management . Contributers: Usha C.V. Haley • Masaaki Kotabe & Shruti Gupta • Yasuhiro Arikawa & Hideaki Miyajima • George T. Haley • Brij N. Kumar, Yunshi Mao & Susanne Birgit Ensslinger • Nancy E. Landrum & David M. Boje • Xue Li, John Kidd, & Frank-Jürgen Richter • Malcolm Cooper • Yi Feng & Baizhu Chen • Howard V. Perlmutter • Sek Hong Ng & Malcolm Warner • Thomas Clarke • Keun Lee • Caroline Benton & Yoshiya Teramoto • Fred Robins • Michael A. Santoro & Chang-su Kim • Beverly Kitching • Hock-Beng Cheah & Melanie Cheah Cover......Page 1 Contents......Page 8 List of Tables......Page 11 List of Figures......Page 13 Notes on the Contributors......Page 14 Part 1 Introduction......Page 22 1 Post-crisis Management Strategies in Asia: An Overview......Page 24 Part 2 Post-crisis Corporate Strategies......Page 36 2 Corporate Responses to the Asian Financial Crisis......Page 38 3 Corporate Finance and its Impact on Corporate Strategy after the Bubble: Is the Long-term Strategy of Japanese Firms Really Changing?......Page 55 4 Internet-based Strategies in Asia’s Post-crisis Emerging Economies......Page 74 5 Global Strategic Management of German MNCs in China: Patterns and Determinants of Sustainable Competitive Advantage in the Aftermath of the Asian Crisis......Page 85 6 Kairos: Strategies Just in Time in the Asian Athletic Footwear Industry......Page 102 7 The Realization of Meanings: Understanding Expatriates’ Needs in the Asian Post-crisis Environment......Page 123 Part 3 Post-crisis Governmental Strategies......Page 154 8 Vietnam: Is Doi Moi the Way Forward in Post-crisis Asia?......Page 156 9 Trade Policy Management, Industrial Characteristics and WTO: A Case Study of China......Page 175 10 China’s Choices: Scenarios for China in the Context of an Emerging Global Civilization......Page 197 Part 4 Organizational Restructuring and Corporate Governance......Page 220 11 Strategic Convergence or Divergence: Comparing Structural Reforms in Chinese Enterprises......Page 222 12 Crisis and Reform in Corporate Governance in Asia......Page 247 13 Corporate Governance and Restructuring in Korea: Before and After the Crisis......Page 273 14 Revolutionizing Japanese Corporate Governance......Page 302 Part 5 Post-crisis Business Environments......Page 320 15 Here There be Dragons: Opportunities and Risks for Foreign Multinational Corporations in China......Page 322 16 Impact of the Asian Crisis on Capitalism in Post-crisis Asian Business Environments......Page 342 17 Political Risk After the Asian Financial Crisis: A Proposal to Consider the Significance of Uneven Political and Economic Transformation......Page 374 18 Women, the Disabled and Ethnic Minorities in Business in Contemporary China......Page 382 19 Sustainable Development and Sustainable Management: Promoting Economic, Ecological and Social Sustainability in Post-crisis Asia......Page 417 Part 6 Epilogue......Page 454 20 Afterword......Page 456 Index......Page 459 Annotation A decade ago, a writer from Fortune magazine wrote in the preface to Kim Woo Chong's book, Every Street is Paved with Gold, that Kim, the Daewoo empire's founder, "personifies the drive and imagination that makes East Asia a dynamic center of economic growth." Kim fled South Korea in late 1999, shortly after his empire crashed. From his initial exile post in Frankfurt, he submitted his resignation from all the Daewoo group's companies. He has left no clue about his whereabouts since then.Kim Woo Chong's meteoric rise as one of Asia's most powerful tycoons, and his equally spectacular fall, symbolize the Asian miracle and the prolonged crisis that threatended to destroy it in 1997 and that still hangs over the economic landscape. The system's flaws became apparent in mid-1999, when Kim acknowledged that his companies, which had acquired a global reach in a debt-fueled expansion binge, could not pay their creditors. By the time the banks that took over the Daewoo group had calculated $80 billion in liabilities, Kim was changing addresses in Europe. For Asia, lessons from the crisis indicate that traditional methods of operation through debt financing and over-investing will fail. This lesson and others are explored in Asian Post-Crisis Management . Contributers: Usha C.V. Haley • Masaaki Kotabe & Shruti Gupta • Yasuhiro Arikawa & Hideaki Miyajima • George T. Haley • Brij N. Kumar, Yunshi Mao & Susanne Birgit Ensslinger • Nancy E. Landrum & David M. Boje • Xue Li, John Kidd, & Frank-Jrgen Richter • Malcolm Cooper • Yi Feng & Baizhu Chen • Howard V. Perlmutter • Sek Hong Ng & Malcolm Warner • Thomas Clarke • Keun Lee • Caroline Benton & Yoshiya Teramoto • Fred Robins • Michael A. Santoro & Chang-su Kim • Beverly Kitching • Hock-Beng Cheah & Melanie Cheah This book examines the key issues faced by the managers of multinational companies, and contains cutting-edge strategies and practices designed to enable managers and policy makers to weather the Asian financial and economic storms. Contributions are provided by an international group of distinguished academics, managers and policy makers, and the issues addressed include: - Post-crisis trends in Asia's economic and financial environments - Successful substantive and symbolic strategies undertaken by multinational companies and governments - Asian firms' and foreign multinational companies' efforts at organizational restructuring - Key issues emerging from the crisis such as corporate governance - Information-gathering for informed post-crisis strategies in Asia - Development of Asian post-crisis management strategies - Management training and re-training for Asia's new business environments Asian Post-Crisis Management shows how to position companies and governments in Asia for sustainable competitive advantage, and will be of interest to top management leaders, senior economic analysts, policy makers, academic scholars and students of international management A decade ago, a writer from Fortune magazine, Louis Kraar, wrote in the preface to Kim Woo Chong's book, Every Street is Paved with Gold, that Kim, the Daewoo empire's founder, 'personifies the drive and imagination that makes East Asia a dynamic centre of economic growth'.