nearly 60 percent o their investmentwithin Asia itsel. In 2011, that ratioreversed, with more than 60 percent o their capital earmarked or outside theregion. Japanese companies make upthe largest block o investors overall,though their rivals rom China are notar behind.
However, there has been no automaticcorrelation between money invested andresults achieved. As Asian companiesexpand into new territory, they run upagainst very dierent behaviors andbelie systems. For every successuloverseas move by a Samsung, therehave been many, many retrenchmentsand losses by Asian companies as they have stumbled over local culturalnorms and language diculties whileclinging to rigid and oten hierarchicalpractices that worked well or themat home.Perhaps the most notorious example o cultural mismatch was the attemptby a Japanese company to teach someo the emale employees o a newly acquired US company how to servetea, wear their hair and choose their wardrobes. Although ewer Asiancompanies today are likely to makesuch a aux pas, their approachesare nonetheless oten out o sync withwhat works in the regions where they choose to invest.Their business leaders know it. Askedto assess their internal executionin light o their global plans, Asianexecutives as a whole say their greatestinternal challenges are dealing withcross-cultural issues, mastering thehuman aspects related to talent andhaving the right local leadership.Nearly hal coness that they strugglewith cross-cultural barriers, and morethan hal are hard-pressed to attractand retain talent in overseas markets,according to the Accenture/EIU study (see charts, pages 4 and 5).These deciencies are proving to haveconsequences or many companies.One sure indicator: Only about a thirdo companies rom China and Indiasay they have seen their revenue andprots rom international operationsdevelop in line with their expectations.The gure is even lower among Japanesecompanies, at just 12 percent. Another telltale sign: Many Asiancompanies have ound it tough tocreate internationally recognizedbrands. Although Asian corporationsnow comprise 35 percent o the world’sbiggest enterprises, they make up just1 in 10 o the most valuable brands,according to Interbrand’s 2012 list o the world’s 100 Best Global Brands—again o only three companies over thepreceding decade. With these markers to go by, is it any wonder that there is such keen interestin what the successul Asian globalizersare doing?For most would-be Asian globalizers,the biggest challenges lie ahead.They conront a ar more complexand volatile global landscape thandid the rst wave o Asian companiesthat built global businesses. They mustgo nose-to-nose with strong localcompanies and an increasing number o multinationals.
The game gets bigger and tougher every year. Between 1990 and 2010, thenumber o companies operating acrossborders almost tripled, rom 35,000 toalmost 104,000, with the proportion o those rom emerging markets soaringrom 12 percent to 30 percent.The prevalence o amily-ownedbusinesses and state-owned enterprisesin Asia also presents unique challenges.In companies where a amily stillholds a sig-nicant stake—hal o publicly listed companies across10 key markets in Asia—ownershipand management are oten tightly intertwined, which makes it harder
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