Concept 4.1 underlined the importance of Confucianism and Buddhism in Asian societies. The differences between these two religions or philosophies have caused GLOBE to create two clusters, one containing China, for example, the other containing India.

To what extent do you believe that Confucianism and Buddhism still play an important role in the business cultures of these countries?

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Concept 4.1 Asian cultures This first concept will examine the two Asian clusters featuring in the GLOBE culture clusters: Confucian Asia and Southern Asia. According to Chhokar et al. (2008), a clear distinction needs to be made between these two clusters. The Confucian Asia cluster, as its name implies, has undergone the influence of Confucian ideology. The Southern Asia cluster, on the other hand, contains many different religions and ethnic groups which live in peaceful co-existence. There is, however, one feature which both clusters share and that is to do with the way relationships are managed. Unlike the West, business in Asian countries is as much to do with the relationship between the parties concerned as the actual transaction itself. This entails paying considerable attention to building trust and establishing respect while displaying the utmost courtesy, particularly towards those in senior positions. Harmony between the participants of any meeting is required, so everything must be done in a courteous, deferential manner to ensure that nobody is offended or loses face. If harmony is maintained, confidence and trust will build and this in turn will form the basis of consensus and eventual agreement on a deal. Patience is of the essence: time is needed to establish a relationship, to decide whether a deal can be made and, if it can, to actually make the deal. All these elements cause Westerners considerable frustration when trying to do business in Asia. They often have to try to make deals under time pressure, so go for the hard sell, assuming that vigorous handshakes and tales of past successes will immediately put them in a good light. Egocentric, brash behaviour does not encourage the establishment of a harmonious relationship, let alone any attempt by the Westerner to impose a deadline on any deal. Nevertheless, deals are made, relationships between Asia and the West do develop, and more and more joint ventures or partnerships are formed. Asians are always interested in a good deal. The basis has to be right: trust is the key component for establishing a good relationship as is illustrated in Spotlight 4.1 on a deal between French and Indian industries.