For Chinese business, the means is more valuable than the end

In Go there is no precisely identified goal, aside from the conquest of areas through strategic flexibility, using context to guide a sense of direction. Profits are relative, and with tied games seldom occurring the ideas of sharing and co-existence are prominent. There are no predetermined starting positions and minimally formalised rules, with form created as the game develops according to a constantly evolving strategic overview. Both sides start with nothing, building organically from zero, the game ending in peaceful co-existence. Strategic considerations and holistic thinking take priority over tactics, and a strategy of exercising restraint in the opponent’s sphere of influence is widely adopted. Remember, for the Chinese, the means is more important than the end.

We should also remember that the Chinese produced Sun Tzu - author of arguably the most influential book on strategy ever written, The Art of War.

In closing, all of this information begs the question - why is there such a widely held perception that the Chinese overseas are successful? The answer, if there is to be one, has been related in business schools around the globe, and comes from the eminent Harvard Professor Michael Porter.

The combination of personal trust and interpersonal harmony as a precursor to commerce, an incredible work ethic, the moral approach of means over ends, thrift, and the strategic flexibility and support for sharing and co-existence in the marketplace are quite different, often times the opposite of how the West approaches business. This should not be surprising considering the Chinese affinity for balance in all things. It is the kind of difference that translates directly to differentiation. Differentiation leading, more often than not, to sustainable competitive advantage.

Why sustainable? Porter argues that differentiation stems from uniquely creating value, with sustainability derived from performing a range of unique value activities that impact purchase criteria. The mix and congruence of ideals and approaches detailed above fit Porter’s definition of a range of activities, and held up against many Western approaches, they are certainly unique. This situation provides some measure of explanation for the success of the Chinese overseas. At home in China, it really isn’t that different.

Put simply, doing things differently to your competitors in a marketplace, any marketplace, can pay dividends. Never forgetting of course, that if things cannot be done differently, perhaps it’s time to do something different.