The Western scholars have always been puzzled by Asia's unique economic system and management practice, particularly by the dramatic swings of Asia's economic performance. To shed some light on this issue, this chapter focuses on two important questions: (1) what have been the causes of success and failure of the Asian firms in the recent past; and (2) what may be the solutions to enhance the competitive advantage of the Asian firms. As a longitudinal case study, this chapter argues that any narrow or static views are problematic; the best approach is to adopt a holistic, dynamic and paradoxical perspective. The case evidence suggests that Asia's economic systems and management practices have both weaknesses and strengths; paradoxically, its major strengths could also be its major weaknesses, contingent upon the transition of different stages of economic and social development in Asia. The real challenge for Asia is to find a way to correct its weaknesses while preserving its strengths.