Networking in Asia, the West<\/p>\n
By Peter Verhezen<\/p>\n
This is the first of two articles exploring the concept of
\nnetworking in Asian and Western communities.<\/p>\n
JAKARTA (JP): In an Aug. 25, 1997 article in this paper, Bob
\nWidyahartono addressed the issue of Asian networking resulting
\nfrom the establishment of trust. He wrote \"although there have
\nbeen few empirical studies on the trust and networking issue, in
\nreality guanxi or networking based on trust has a positive impact
\non efficiency and growth.\"<\/p>\n
Although Widyahartono did not define what trust exactly means
\nand where or how that differs from a western interpretation, the
\nnotion that networking helps to boost an economy could be
\ninterpreted as a normality since all businesses are based on a
\ncertain trust, both in the East as well as in the West.<\/p>\n
Networking is not a uniquely Asian or Chinese practice.
\nNetworking is also important in the West.<\/p>\n
It can be concluded from Francis Fukuyama's latest book
\nTrust: The Social Virtues & The Creation of Prosperity that in
\nsome Western cultures, the extended family concept plays a
\ndominant role in community and business matters.<\/p>\n
\"Linkages\" in Italy are a good example of such strong
\nbindings. Networking is as important in Italy as it is in Asia.
\nThe famous (Mafia) kiss in business transactions is an outward
\ndisplay of this.<\/p>\n
Indonesia -- especially Java and Ambon -- possesses some
\nunique cultural values. However, one can easily identify general
\nAsian values claimed as norms in Indonesia, the West and
\nSoutheast Asia.<\/p>\n
Hard work, respect for learning, honesty, obedience to
\nparents, helping others, self-discipline, personal success,
\nrespect for authority, social harmony and an orderly social
\nconsensus -- all proclaimed as Asian values by Widyahartono --
\nare not so unique to the East as they also can be found in
\nWestern ideals.<\/p>\n
Stating that networking through trust is a unique
\ncharacteristic of Asia disregards empirical facts and suggests
\nthat the West is not aware of the value of trust.<\/p>\n
Trust is a fundamental aspect of interaction, whether
\ncultural, philosophical or economic. Trust and networking are the
\nbasis of almost every financial transaction.<\/p>\n
Warren Bennis, a famous author on leadership, notes: \"Trust is
\nthe emotional glue that binds followers and leaders together. The
\naccumulation of trust is a measure of the legitimacy of
\nleadership. It cannot be mandated or purchased; it must be
\nearned. Trust is the basic ingredient of all organizations, the
\nlubrication that maintains the organization.\"<\/p>\n
According to Fukuyama, trust constitutes one of the basic
\nfeatures for any social and economic community. It is the
\nunderlying force in establishing societal and economic ties,
\ncommunication and networking. Trust is the basis on which
\nbusiness communities survive.<\/p>\n
Dramatic economic and international business changes are
\nmaking trust more important and more elusive. Trust is necessary
\nin any marketplace. The hypothesis is that a world completely
\ndevoid of trust can only exist in our imagination -- people
\ncannot survive without trusting each other. Yet the competitive
\nenvironment that makes trust more important is also making it
\nmore difficult to sustain.<\/p>\n
Trust can be defined as the belief that those we depend upon
\nwill meet our expectations of them. The word trust is derived
\nfrom the German word trost which suggests comfort. Trust is,
\ntherefore, partly based on faith in a sense that those being
\ntrusted are both willing and able to meet our needs.<\/p>\n
Confidence, however, is more the result of specific knowledge
\nand is built on reason and fact. Trust is more than simple
\nconfidence and less than blind faith.<\/p>\n
The key components for building trust are achieving results,
\nacting with integrity and demonstrating concern.<\/p>\n
Anthropological and sociological studies have shown that
\nnetworking is more easily established among members of the same
\nfamily, tribe or culture.<\/p>\n
The well-known distinction between old Greeks and non-Greeks
\n-- or \"barbarians\" -- is a case in point. Richard Rorty, a
\ncontemporary American philosopher, goes so far as to state that
\ncompassion and trust is limited to those with close ties. Or more
\nbroadly expressed: To trust somebody you are familiar with is
\neasier than with somebody unknown from another tribe or culture.<\/p>\n
Networking is a characteristic or feature rather than the
\nbasis of trust. Trust means that a party, whether belonging to
\nthe same culture or same community, believes that another party
\nwill value its commitments.<\/p>\n
Historically, economies have grown the fastest within closely-
\ntied communities. Trade among the members of the Association of
\nSoutheast Asian Nations has grown dramatically over the last
\ndecade.<\/p>\n
In economic terms, it is quite obvious that almost any
\ntransaction is based on a certain amount of trust. The so-called
\nprisoner's dilemma has proven the trade-off between trust,
\nloyalty and cheating.<\/p>\n
The utilization of trust in business is definitely more
\nlucrative even from a pure economic point of view. Trust indeed
\nleads to extensive relationships and consequently to networking.<\/p>\n
Moreover, trust in somebody will likely benefit that person by
\nincreased economic transactions.<\/p>\n
Many Western and non-Asian examples could be given where
\nnetworking is a sine qua non for any business deal. The Chinese
\nterm guanxi, networking, also plays a major and quite unique role
\nin obtaining business in Asia.<\/p>\n
But it is not always as efficient as Widyahartono proclaims.
\nNetworking which is not entirely based on business principles
\ncould easily fall prone to nepotism which often can become
\ncounterproductive.<\/p>\n
Although trust in business transactions is assumed to be
\nessential to any business deal, economists and versed consultants
\nare aware of the dangers of exclusively relying on already
\nestablished networks as the sole basis for business practices.<\/p>\n
Empirical studies would prove the opposite of what many
\nconsider healthy practices to attain long-term growth or real
\nefficiency. Recognizing this, the Indonesian central bank has
\nlimited borrowing between closely connected groups because
\nkinship is not always the best guide for the most efficient or
\nsound business decisions.<\/p>\n
There are many examples in which corruption, resulting from
\nexcessive deference between partners with close ties, resulted in
\neconomic disasters -- though sometimes the individuals
\nresponsible did indeed extraordinarily benefit from it.<\/p>\n
These practices surely do not positively impact efficiency and
\neconomic growth.<\/p>\n
The writer is the managing partner of Cimad Pacific
\nConsultants Ltd, Jakarta.<\/p>",
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