The United States has been able to do substantial amounts of business with Japan throughout history. Typically, the two countries have been able to maintain great partnerships. Many US companies have expanded into Japanese markets, and have had success in doing so. This could be due to the fact that Japan is referred to as a more “western” culture than other countries in Asia. While there are many similarities among the cultures, there are some significant differences that must be analyzed prior to encountering in a business deal with Japanese companies.
One main difference between the Japanese culture and the American culture in terms of business is that Americans often are unafraid to speak their minds when communicating. Americans are often direct and to the point and Americans will perceive an indirect tone as unorganized or unprepared . In Japan, a direct approach is interpreted as rude to the other individual within the conversation . Japanese business people often use non-verbal communication or subtle hints when expressing their opinions in hopes the receiving person can interpret what they mean . This is one of the reasons Japan is seen as a high-context culture. Another difference lies between facts and emotions . Individuals of the United States tend to communicate through opinions and facts. Japanese business people typically analyze conflicts in a more indirect manner, not involving any sort of confrontation. They have a more feminine way of approaching conflicts, opposed to the United States who uses a more masculine approach . They often look to create harmony and will conform to groups to do so. There are not many occurrences where an individual will speak out against a group . Japan tends to be a more collectivist culture in comparison to the United States, who is much more individualistic . The Japanese focus on groups and communities, from which they develop a sense of pride . In the US, individuals’ find success and satisfaction in their personal accomplishments and focus on goals and aspirations set for themselves . Japanese professionals typically work for one company for their entire career . Loyalty is important and promotions are typically given based on seniority . American business people focus on their careers independently and not only tend work for multiple companies, but changes in career path as well.
In addition, companies of America tend to make speedy decisions on information that is available. The Japanese decision-making process is much slower and is typically completed in stages that entail many meetings and documentation . It is believed that this slow decision-making process will lead to minimal errors and a greater amount of consistency throughout the company’s entirety. Japan values quality and perfectionism, which ends up using a hierarchical decision-making process, also adding to their slow process. Although Japan is feminine in terms of assertiveness, they actually rate high on the masculinity scale specifically because of their drive for excellence and perfection .
Another cultural difference that is important to be mindful of when doing business in Japan involves gift giving. Japanese business people often treat others to lunch and give inexpensive gift, although many decline for fear the gift will lead to a sense of obligation. In the US, gift giving is becoming a cautious action as many companies see these as ethical issues or conflicts of interest. Additionally, Japanese business people are very big on punctuality, formal dress and professional titles, such Mr. or Mrs., followed by a surname . These are very important factors to keep in mind when going into business with the Japanese, as these traditions vary in degree of relevance in the United States depending on the company.
There are various reasons that western companies have difficulty succeeding in Japan. First, due to Japans size, large investments are imperative, causing an enormous risk. Things could go great or very far south. Secondly, Japan has a strong loyalty to the local economy. A very well-known company, eBay, withdrew from Japan due to local competition. Companies of Japan have had difficulty welcoming new competitors. Another important factor is that Japanese customers tend to be demanding and have significantly different needs and tastes than those of the west. Companies must adapt their products to target the Japanese markets. Another reason companies have had trouble succeeding is that management styles in Japan tend to be different than in the US. Thought processes and management method changes are essential to having success in Japan, although many western companies forget this information. Japan is one of the most uncertainty avoiding countries in the world and this can be related back to the amount of details management takes into consideration before making decisions. The US on the other hand, is more willing to take risks and pose new ideas, giving them a low uncertainty avoidance.
While American companies have seen success in their endeavors in Japan, they must continue to do their research before pursuing partnerships. The culture of the United States and that of Japan is very different and must be taken seriously as there is a great deal of risk in global business.