Asian business systems

This chapter provides an overview of the current state of knowledge about the institutional structures of Asian political economies and their impact on the role of the firm in the political economy. After defining key terms, it proceeds with a discussion of the five different types of business systems, or varieties of capitalism, present in the Asia Pacific: (post-)socialist, advanced city, advanced Northeast Asian, emerging Southeast Asian and Japan. It then touches on the question of comparative institutional advantages, before transitioning to a discussion of institutional change, and in particular the agency Asian firms may exert in this context. The chapter argues that the existing institutional structures shape such agency both by influencing the objectives of firms and by encouraging the use of certain generic strategies over alternatives. It closes with a brief summary and suggestions for future research.