The recent rise in globalization has made countries in the Southeast Asia region suitable for outsourcing and opening subsidiary companies. Among the countries that are increasingly being recognized is Taiwan; though the country is under territorial disagreements with China, it is recognized as a republic. Nonetheless, the Taiwanese business culture has changed dramatically, like China, in the latter decades of the 20th century. According to Liao et al. (2015), the change is linked to the country’s embracement of capitalist culture in the mid-1980s. The outcome of the change in business culture resulted in the country experiencing a rise in entrepreneurial activities. Additionally, the country also assumes specific labor-related characteristics similar to mainland China (Liao et al., 2015) . Overall, with numerous organizations targeting the country, the Taiwanese government has made the environment welcoming, with numerous critical facilities developed. Moreover, it has refined its foreign investment policies, thereby making it easier for Taiwanese subsidiaries.
Cultural Differences
Time Management
Considering that Taiwan is a Southeast Asian country, its cultures greatly differ from those of the west. Therefore, it is critical to value the Taiwanese busines culture if subsidiaries are to be opened in the country. Organizational harmony is an essential aspect of success, particularly when handling different cultures in an organization. Among the first cultural differences presented by the Taiwanese business, culture is time management. Time management is a fundamental business culture adopted by the Taiwanese people. Punctuality is highly appreciated; therefore, meetings are always prompt with each agenda allocated strict timelines for high efficiency. According to Liao et al. (2015), time management is an essential aspect of business performance as it directly affects product and service quality. The study further states that proper time management contributes to effective prioritization resulting in more work being accomplished (Liao et al., 2015). Such cultural traits are essential as they would allow MNCs (multi-national companies) to bolster their services and product processing resulting in increased revenue generation.
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Meeting Management
Another cultural difference is meeting management; under normal settings, business meetings tend to be long because addressing issues to satisfactory levels may be time-consuming. It is a common trait identified in most western companies and organizations. However, in Taiwan, business meetings are managed differently (Chang et al., 2017). The first meeting allows both parties to comprehend the issues or factors of the contract. In such meetings, the process is described as highly detailed and brief. However, unlike most meetings in western companies that are strictly formal, the informal conversation is encouraged to develop relations between the two or more parties (Chang et al., 2017). Finally, in the second meeting, negotiations are engaged with the decisions terminating the meeting. The identified approach to meeting management in Taiwan is effective for numerous reasons (Chang et al., 2017). Among them is that each party is allocated sufficient time to consider the contract's issues or attributes. The process is both efficient and effective as it allows the main and subsidiary company to address issues are as fast as possible, allowing for no time wastage.
Group Relation
Most of the Taiwanese population comprises of Han Chinese whose ancestry is mainland China. Nevertheless, most of the population is founded on traditional Chinese principles, particularly Confucianism (Kawaguchi-Suzuki et al., 2019). Though industrialization pressures have caused numerous effects to the traditions, it has not altered their strong values. Confucianism is structured behaviors and morals that govern the people by describing an individual’s position in society. The result is a collective culture country-wide, with respect and dignity among the people and the will to overcome emotions for the benefit of others (Kawaguchi-Suzuki et al., 2019). The cultural trait is essential in creating harmony within the company as foreign employees operate it in Taiwan.
Conclusion
As a country, Taiwan offers numerous economic advantages over other countries due to its business culture and the country’s foreign policies. As previously mentioned, though industrialization is affecting the country’s culture, it is still strong. The people and business culture will continue valuing time and meeting management and group relations embracing equality.
References
Chang, W., Liao, S., & Wu, T. (2017). Relationships among organizational culture, knowledge sharing, and innovation capability: a case of the automobile industry in Taiwan. Knowledge Management Research & Practice , 15 (3), 471-490. https://doi.org/10.1057/s41275-016-0042-6
Kawaguchi-Suzuki, M., Law, M., Prisco, J., Head, K., Fu, L., & Yumoto, T. et al. (2019). Cultural Sensitivity and Global Pharmacy Engagement in Asia: China, Japan, South Korea, and Taiwan. American Journal Of Pharmaceutical Education , 83 (4), 7214. https://doi.org/10.5688/ajpe7214
Liao, S., Hu, D., Chen, C., & Lin, Y. (2015). Comparison of competing models and multi-group analysis of organizational culture, knowledge transfer, and innovation capability: an empirical study of the Taiwan semiconductor industry. Knowledge Management Research & Practice , 13 (3), 248-260. https://doi.org/10.1057/kmrp.2013.46
