An analysis of factors influencing organizational structure in two East Asian nations

Abstract The purpose of this paper is to investigate the link between culture, history, government policies and the development of economic institutions. Specifically, the paper discusses the impact that history and culture, including the influence of Confucianism, have played in shaping the economic institutions of South Korea and the People’s Republic of China. Research results indicate that culture, history and government policies all played a role in shaping the organizational structure of these two East Asian nations. However, China’s economic landscape is dominated by small and medium-sized, family-oriented firms, particularly in the rural parts of the country. The South Korean economic landscape, on the other hand, is dominated by large conglomerate firms called Chaebols which are also dominated by one family.