The management practices in Malaysia were greatly influenced by the British. Managers and administrators practice both the Western and Asian style of management. Small businesses mostly adopt the Asian style of management. For instance, Chinese family-owned businesses run their businesses in the traditional Chinese manner- as either a clan-based or closely-knit family operation.
Larger businesses, multinational companies (MNCs) and foreign- owned companies are managed more with the Western approach while incorporating some local ethnic values and practices that work elsewhere such as Quality Control Circles (QCCs) and Management by Objectives (MBO). The Look East Policy (LEP) also encouraged Malaysians to incorporate some Korean and Japanese work ethics into management.