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Abstract
This paper presentsan opportunity to take a penetrating look into a Global Business Cultural Analysis of the nation of Japan. In writing this paper, four research areas and issues were examined: The major elements and dimensions of culture in Japan: how these elements and dimensions are integrated by locals conducting business in the nation of Japan, a comparison of culture and business of Japan and the United States, and finally implications for US businesses that wish to conduct business in Japan.
Introduction
Globalization rest at the foundation of modern culture; cultural practices reside at the core of globalization, so what does globalization mean for Japan. This is the reciprocal relationship in which I will try to explain that is taking place within the country of Japan. I will explore how political, economic, social and cultural aspects of this nation affected business in Japan. While addressing how these major elements and dimensions of culture in Japan are integrated by locals conducting business, a comparison of culture and business of Japan and the United States, and finally implications for US businesses that wish to conduct business in Japan.
Japan is nation infused with rich culture andcenturies of history and in order to be successful in a business adventure there it is important that whatever foreign country understand the Japanese culture as well as history. This is a key factor in the success of foreign nations doing business in Japan because; the Japanese tend to be culturally influenced in their views as they pertain to, society rules and business standards. Therefore it is detrimental to know the precise rules to engagement for doing business in Japan ( The Economist, 2005)
Although Japan is heavily cultured in the aspect of society rules and business standards, Japan is grasp the concept of globalization. Japan’s notion of globalization is similar to many other nations. The country shares in the ideal creating wealth and filling the desire of one’s carnal needs are looked upon asbeing "good, pure, and natural"-an adaptation of Buddhist teachings to the local cultural context (Hatoyama, 2009).
Japan’s Environmental Make-up
The archipelago (chain of islands) located of eastern cost of Asia; which are known as Japan is inhabited by over 123 million Japanese(Nihonjin, Nipponjin). Japan is ranked number seven in terms of largest population in the world. Although, Japan’s inhabitants are increasing in age; with average lifespanned from birth to death being 75.91 years for men and 81.77 years for women (Nihonjin, Nipponjin). Japan’s population is ageing out and the birth rate is insufficientto replace Japan’s present-day population. Japan is comprises of four main islands— starting with the northern island Hokkaido moving on south to Honshu, Shikoku, and Kyushu. These island that make of Japan inhabits lessthan 0.3 percent of the land mass provide here on earth and compared to the United States Japan is only one twenty-fifth the size of the United States.Japan is positioned with-in a temperate zone that located northeastern end of the monsoon region, and is inclined to four different meteorological conditions a year. There is a profuse amount of rainfall that fall’s each yearin Japan, as well the nation is subject to frequent earthquakes. In late summer Japan is at high risk for to typhoons. The geographic blueprint of Japan is cover by several rugged mountain chains, in which many of them are active volcanoes. These mountain chains are massive; they cover more than 72 percent of Japan’s total terrain (Nihonjin, Nipponjin). Along with that Japan hasabundance of rapid, shallow rivers that streams from the mountain tops, down into the ocean. This leaves Japan withbarely any terrain for agriculture production, which account for over 14 percent in this present day; residences and Japan’s infrastructuresaccount for another 7 percent. This leaves most of Japan countryside coated by thick, cultivated woodlands.
Japan was once a feudalistic country, until 1871 when it became a nation-stated (Nihonjin, Nipponjin). Japan has become by far the most advance society in terms of technology in the world today.For the most part Japan remains a homogeneous society with less than 1 percent of the inhabitant categorized as non-Japanese. Emigration is highly regulated in Japan.Japan’s religious foundation has been shape by Shinto; Buddhism, that found its way into Japan by means of China through Korea in the sixth century.A great portion of Japan’s society categorizes themselves as both Shinto and Buddhist, and leaving only more than over 1 percent as Christian((Nihonjin, Nipponjin). A substantial percentage of the inhabitants of Japanare, however, in fact nonspiritual. The Japanese classify themselves by shared genetic inheritance, birth in Japan, and a common language and culture. Even though,Japan is a postindustrial civilization and has been mainly for the most part after World War II. Japan has been systematically open to the cultures and values of North American and European, and the strong appreciation for the past and unique cultural heritage still remains the fundamental principles for creating a contemporary Japanese identity.
Emigration
As the world increasingly shift into an open market, there is a number of people that are employed andresiding in foreign countries.Research also stress that it is key factor to have the ability to adapt to a different culture and function efficiently. It is also necessary thatemigrants should be able to accustom their outlooks and actions to the new cultural environment. There a number of studies that outline the countless issues that are tied to Japan as it correlate to non-work- and work-related characteristics of cross-cultural modification. In addition to work,structural, and background factors, empirical studies display that constant emigrant character traits are also significant in determinants of cross-cultural modification.
Therefore we must consider the impact that individual, background, and job and organizational elements on emigrant’s adjustment in Japan. Japan is hard on expatriates, mainly due to the fact they are homogeneous society, so thereforeemigrant have to the right mixes of personal traits and characteristic that would allow them to be successful in Japan business arena. Non-fortunately studies indicate that about 80% of emigrants in Japan are deemed failures by the center of operations in which they work for (Peltokorpi,2008) . Even though the person may have the right character traits does not necessarily mean they will be successful in Japan. Japan is a masculine country so many female would not do well in role of authority of corporation.Regardless of the fact that steady changes are being made on how women are view in Japan there is stillcategorizes of women as inferior as it relate to management roles and Japanese practices discriminatory action against women that are trying to move up the corporate ladder. According to Peltokorpi many businesses in Japan operated on atwo-track employment system, in which it place emphases on women working support roles in the company’s structure and keeping them in temporary positions.It is important to assessed causes of emigrant cross-cultural modification as it relate to everyday living and interaction (non-work) and how they adopt to work-and job satisfaction aspects in Japan. It’s an assumed that cultural distance and immigrant gender, language, what organization their affiliation or not, and if they constancy personality traits such as open-mindedness, social resourcefulness, emotional stability, able to identified with the cultural, and flexibility; which has an impact on both non-work- and work-related adjustment.
Legal Business Contract
Moschis et all, ( 2011) reported that Japanese business contracts are based upon regulation favoring more substantive reasoning that is similarities to United States.Japanese lawsemploy substantially wide-ranging of content-oriented principles of good faith and/or unreasonable doubt. Nevertheless, portraying Japanese law as “drastically different” is undoubtedly an overstatement. There are twofundamental doctrine that is applied by the Japans in terms of legal contract.The first one is doctrine of non-attributable impossibility and the second is known as doctrine of changed circumstances. These two doctrines together haveset forth criteria, such as foreseeable, which is areciprocal part of law of frustration. In the same way that United States law, has extensive recognition process for relief in the event of tremendous economic displacement, so does Japan. While on the other hand, this trails upon from “Article 415 of the Civil Code, which provides that the promisor becomes liable for damages if performance becomes impossible for any cause attributable to him or her(Nottage,2007).” So therefore if we reverse implication of Article 415 of the Civil Code it will give lead way for the promisor and they will not be liable for non-attributableperformance, in which is consider an act of God or an incident that takes place and is beyond his or her control.This notion has impossibility been interpreted to including not only physical impossibility, but also impossibility that relate to “common sense in society” (shakaitsunen)(Nottage,2007). Consequently the promisor then might have a chance of being excused if performance of his or her responsibility would acquire enormously amount of labor cost and/or other costs.The doctrine of change circumstances (jijohenko no gensoku) is the relatively news of the two doctrines. This doctrinerecognizedas being more popular of the two doctrines in providing relief here costs of performance have increased dramatically and also where the market price of the subject matter of the contract (such as land) has fluctuated widely.The Japanese doctrine came to be recognized by the courts toward the end of World War II and during the decade of economic turmoil and reconstruction that followed. One prerequisite for the doctrine is a substantial change in circumstances affecting the basis of the contract. A second prerequisite, sometimes related in that it can involve weighing any resultant disequilibrium in contractual obligations, is that strictly enforcing the promisor’s original obligation would be highly unfair in light of the principle of good faith.
Japan’s courts system in particularly the Supreme Court, are also unwilling to utilize both doctrines to discharge a company form promisors. In some scholar’s opinion Japans laws seem to be much more merciful then that of the United States.
However, according to one scholar in particular John Haley believes that in term of non-attributable impossibility Japan is not more liberal than that of the United States (Nottage, 2007). Haley also recognized that there is no hesitancy on the behalf of Supreme Court’s to apply the doctrine of changed circumstances, and determined that there is in no way Japan courts are eagerly accept excuses.Japanese courts absolutely come to an understanding that certainty and consistency are civic values. Individual justice is not a major concern terms of applying the law in Japan.
Japanese and American Business Practice
The Japanese business culture and the American business culture is heavily influenced by the communication style. In non-verbal communication, the Japanese communicate indirectly by beating about the bush. The Japanese are not direct while the Americans are direct to the point. In Japanese culture, it is rude to express emotions freely. So while negotiating with Japanese, it is important to reduce being direct to the point, and take a more aggressive part listening than speaking (Katsuura,2012).
The Japanese are culturally tolerant and would understand the cultural differences that appear while in contact with foreigners. However, one must understand that the Japanese culture is heavily laden with customs and protocol. While doing business with the Japanese, the American must acknowledge that demonstrating a strong knowledge and understanding of the culture is an indication of a pure desire for the success of the meeting. It is a simple act of friendship that would go a long way in solving many business problems.
When in a meeting with the Japanese, the toughest challenge comes when it comes to greetings. This usually happens at the begging of the meeting. In Japan, bowing is an important gesture of commitment on honor. However, most Japanese business people understand that Westerners do not bow and are accustomed to offering a handshake instead. If an American business person insists on bowing, he must understand that the longer the bow, the more respect one gives to the recipient. In Japan, bows are repeated; the more the bow is repeated the less formal the conversation would take. In some cases, a bow and a handshake is combined.
Another important aspect of Japanese culture is the idea of exchanging business cards. In Japan, exchanging business cards follow a certain protocol. In Japan, the business cards are called “Meishi” and they are treated with most importance. While exchanging business cards, it is important to be proper and carry quality and well decorated cards. The quality of cards sends a message of how much business you would be worth of doing, or how serious you are. When receiving cards, it is important to thank the giver of the card by offering a quick bow. It is also important not cover the person’s name with the fingers. This may indicate disinterest. Exchanging business cards also require particular attention to order of seniority, level of acquaintance and age. The worst thing you could do in the process of exchanging of business cards is cramming the paper in front of the person who gave you the paper ( Franklin, 1995).
Japanese Business Philosophy of Confucianism
Godkin, & Endoh, (1995) argue Confucian teachings have a profound influence for most Asia countries Japan included. The Confucians philosophy has become many Asians belief in life. While most Japanese people are not religious, the Confucian philosophy plays an important role in how they do business. The Confucian values include being thrift, saving, persistence, and value of other people. The Confucian people take pride in persistence with slow results, adaption of tradition to a modern context, acceptance of unequal relationships, and a concern for virtue rather than truth. These characters make Asians became very different from Western people. The application of Confucianism to Japanese business models has alleviated conflicts of management, enhanced customer loyalty and good customer relations with regular customers.
Because of Confucian models, the Japanese hold creed to the idea of power distance. Power distance refers to the acceptance of differences in power and wealth among people. This is often reflected in limited interaction between social classes and restricted movement from one class to another. In Japan for example, the element of power distance is held dearly when dealing with business interests from other areas. Japan people keep in awe people who are in high social class. For business, Japan people will not negotiate with the opponent who is of lower rank. When dealing with Americans, the Japanese always want to negotiate for business contracts of equal status.
While this is an important to determinant on the methods of doing business, it sends signals on what to do on what not do when negotiating with Japanese business people. Perhaps one of the greatest cultural differences between Japan and the United States is the importance of the society ahead of the individual. In Japanese culture, the individual needs are subsidiary to the societal needs. In the United States, the individual rights are important and must be honored at all costs. Understanding this key difference is pivotal for total understanding of Japanese business culture.
Nottage (2007) argued for the harmonization of contractual laws to facilitate good business practice between the United States and Japan. In his research, he compared the contractual relationship between the United States and Japan that practice less formal and observed the more formal relationship of New Zealand and England. Nottage argued that “didactic formality” would be instrumental in identifying the differences in business laws of the two countries. The premise of the argument that while England and New Zealand observe the law as indicated in the books, Japan and the United States are a little flexibility with the law as indicated in the books, instead they practice the law as in practice. Nottage argues for the harmonization of global business laws to enhance international trade.
Vesa Peltokorpi (2008) examined approaches that could help cultural harmonization for expatriates working in Japan. In the argument, she reasons that the use of language, cultural distance, language proficiency, and stable personality traits were important elements that are critical for stable business practice in Japan. In addition, she advises that while in Japan, it is helpful to have an open-minded approach to life.
How the United Can Adapt for the Sake of Trading With Japan and the Rest of the Word
The world is almost integrated as a global economy. In this integrated world, the United States plays a central role as the largest economy in the world as well as a member of the G-8. In that sense, wherever happens throughout the world does affects the United States of America. There are two main reasons for this. First, the phenomena of globalization mean that many parts of the world are vital to the United States both economically and strategically. Second, the rest of the world looks towards the United States as a leading business destination for leadership. A plethora of reasons weighs for a company’s choice of location and to a large extends operation. While many of these factors such as the presence of resources, capabilities, and knowledge are internally driven, other factors, however, arise outside of the entity. In international business, these aspects are classified into five broad categories: political, economic, social, technological, and competitive forces. American businesses are not exceptions to these rules. Still, what is the significance of the transformation to highly globalized market for businesses in the United States and Japan?
Three reasons are functional in this respect. The first opportunity is the abundance that accrues from the availability of a variety of choices for consumers and the continued lack of scarcity on common goods. The United States managers must ensure that they create a niche that makes them attractive in an extremely competitive global arena. The second reason is the potential of Asia and Latin America as emerging markets and the ability of the new workers to get work done in efficient and quick ways. Because of the Asian efficiency, companies are now looking towards out sourcing as an alternative way of making a profit. While outsourcing is a question of political discourse, it is one way that many firms in the United States have responded to the increasingly expensive labor. The presence of cheap labor overseas enhances profit maximization for firms because the sole goal of companies is making a profit. Japan sees the United States as an important partner and makes all effort to accommodate the needs of the United States. Evidently, a mutual understanding of quality, respect and business is paramount for successful business association between the two countries.
The third aspect is automation and refers to the computerization and the use of technology instead of people to get work down. In view of Pink, these three new approaches bring the challenge of deciding whether computers can replace human kind in terms of efficiency and cost. Companies also need to ask if what they offer is demanded in the market or if it is abundance and third if out- sourcing would be ideal for the business. Pink’s argues that in order for companies to solve these problems, they will need to adopt approaches that are comprehensive instead of rigid. Flexibility in approach would be required for the success of any business in the global system. The need for flexibility in carrying out business leads the development of what is normally referred to as global mindset. In a global mindset, corporations in American think beyond the East Coast and the West Coast, they think Japan, China, Africa and the rest.
As the global economy grows, managers of firms have to learn to function effectively in other contexts and cultures just as they do in the United States. This requires that managers must be culturally aware of impeccable ability to adapt to different situations and environments. Globalization requires that managers reorganize the way they conceptualize management to incorporate different ideas that may be unconventional. In order to this, managers must learn to think globally. In the words of Lane et al, (2012), thinking globally means extending concepts and models from one to another relationship, which requires dynamism in the conceptualization of reality. A successful understanding of this concept is termed having “global mindset”.
Ardichvilil A., Jondle D., Kowske B., (2009) adds that a global mindset is the aptitude to see and comprehend the world another way than one has been habituated. A global mindset has the meta-capability that permits the individual to function in multiple situations. Globally minded leaders must understand cultural, political, socioeconomic conditions that domestic managers do not need. In addition to understanding different cultures, the managers need to develop a broadest of repertoire with behaviors that reflect respect for the people and the government of the new territory. This is possible only if the global managers acquire the skills and knowledge akin to those required of domestic leaders. Qualities required of global minded leaders include self-awareness, open-mindedness, non-judgmental, tolerance, and trust even in the most untrustworthy situations. On the other hand, Ruasch (2008) noted that while the government of Japan has been most successful in branding of Japanese products across the world, the government has often neglected local branding in the regions across Japan. Perhaps this provides an explanation why Japan, despite a whooping population does not have a vibrant local economy as the United States.
The United States managers must embrace the qualities of global mindset to be able to stay competitive with the rest of the global leaders in the world market. Closed-minds do not provide opportunities anymore because jobs are moving abroad. Pink proposes a radically different approach to business people and workers. Because of the nature of the new business environment, business should realize that traditional consumers and workers do not operate the same way; this requires an altogether different approach. This approach calls for an approach that takes advantage of the laxity in the business environment. The new strategy should embrace a strategy that honors the worker by promoting quality, creativity, innovation, and talent. In addition, businesses must demonstrate empathy and desire for genuine pursuit of meaning for workers. In a word, a global mindset requires a redefinition of what some scholars have described as a corporate culture.
Conclusion
Japan is not very farfetched for trade with the United States. The United States needs Japan just as much as Japan needs the United States (Yukio, 2009). While planning to operations abroad, companies but strive to position well for the business climate overseas. Apart from responding to external forces, companies should also attempt to influence them. Companies ought to innovative enough not to be susceptible to influence but unable to change the environment for the positive. External factors in business are largely beyond the control of a single organization. However, how can a firm influence the external factors that affect it? For the political and legal forces, a company must become law abiding by relating to changes in laws and regulations. Keeping within the law allows a business to find ways that the new law affect how they must behave. Businesses can make use of new economic forces by ensuring that they use the bulging economy as an opportunity to make profits. This way, they welcome rising living standards among their customers. Socially, a business ought to welcome changes in the nature of the population, as well as in consumer culture and how the change affects buying patterns. Technology enables businesses to acquire new ways of doing business abroad.
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