The manager who is quick to group firms into clusters, however, is not much better off than the one who treats the world as consisting of a homogenized culture. All countries are different from all others. Some are just more different than others. And, to the degree that they are different, they require different behaviors from the firms. The Asian countries of Japan, China, and Korea are often grouped together as being similar. It is felt that if one understands and can function in Japan, then one can function equally well in China or Korea. However, regional specialists have noted that business organizations in Japan, the People’s Republic of China, and the Republic of Korea are not run by the same management principles. In Japan, there is a strong focus on group loyalty and consensus, expressed as wa. Mutual cooperation is of primary concern so that the group can devote their energies to reaching group goals. To more readily reach this state, many Japanese managers will insist that business dealings only occur among friends. In Chinese business relations the guiding term is guanxi, with the emphasis being on the relationship between two persons. It is based on friendship and the exchange of favors, which tends to favor the weaker member of the pair. And, in Korea, the guiding principle is inhwa, which refers to harmony, especially between those of unequal status or rank.

Even though there is some relationship between the guiding business principles of these three Asian countries, they are different and require subtle differences in behavior. To be successful in Japan, firms have to behave in ways that are acceptable to the Japanese and in China, firms must use Chinaspecific criteria and procedures. Performing in this manner would be difficult for a foreigner who spoke the language. It is practically impossible when the language is not spoken. And, as observed by Tung, a major language barrier exists for Western executives who are unable even to guess at the meanings of words from their spelling. This would be true for many other languages of the world, for example, Arabic.

Even here, within the constancy of the Asian cultures, the existence of change, as noted earlier, is at play. Schwind and Peterson have observed that young Japanese management trainees exhibit values more similar to U.S. students studying in Japan than to those of established Japanese managers. The trainees show a significant shift toward the values underlying Western management practices. For example, rather than supporting the collective goals characteristic of Japanese managers, the trainees show a stronger orientation to personal goals and to pay and promotion policies based on performance rather than seniority.