International business is a complex ecosystem. As enterprises of all size and activity engage in business dealings on a regular basis, differential modes of interaction emerge. Notably, cross-cultural communication is becoming increasingly a mandate for performing business functions not only locally and abroad. Accordingly, competencies for cross-cultural interactions become a requirement for successful business. This applies, more specifically, to staff who is assigned internally for short or long business positions. True, international business has been a staple of human activity for millennia. However, current business ecosystem departs radically from conventional business practices. Characteristically, current business is more overlapping and dynamic compared to conventional practices. More specifically, present international business practices assume a complex character whose constitutive components are not shaped by corporate values alone but also by values and practices set and performed by business partners. Further, corporate values and practices are not shaped by business alone. Indeed, as international business assignments become more established and as business is not only about business per se but also about full engagement of local stakeholders in business or external ones in broader community, learning how to do business internationally in and out or workplace has become a basic requirement. To perform effectively in international business requires, accordingly, insightful understanding of how international assignees conduct business in actual business contexts. Predictably, doing international business in different contexts requires different arrangements in order to adapt to changing business activities and functions. For current purposes, a specific business context is selected for cross-cultural investigation, namely Japan. Reporting about a U.S. assignee in Japan, differences between U.S. and Japanese cultures are explored in a business context. A description of business ecosystems in both countries is discussed. A special focus is laid on doing business in Japan, host country. As cultural differences between both countries are pronounced in a business context, insights for U.S. assignee cross-cultural competency are developed. This report aims, hence, to explore Japan's business context compared to U.S.'s in an aim to develop cross-cultural competence for a U.S. assignee in Japan.
As just noted, different business ecosystems require different arrangements. Japan is not different. To do business in Japan a U.S. assignee needs to gain a basic understanding of Japan's culture, value system and, not least, business practices and conventions.
The Japanese business context is, indeed, unique. Generally, Japanese are known for dedication to workplace. That is, showing loyalty to company and managers is a common, implicit practice between Japanese workers (Sauer, 2013). Expression of emotions or feelings is not acceptable in Japanese business context. Congruent to harmony – a central concept in Japanese business and social life – are expressions of sorrow and a clear admittance of mistakes (Sauer). In fact, refusal to admit mistakes, let alone mending wrong doing, is not only unacceptable in Japanese culture at large but is also an action which leads to further problem.
Conventionally, Japanese business culture is one dominated by a handful of families in what is referred to as "zaibatsu" (Axiom, 2003). This system – controlled only by one family or one board of directors – dominated business in Japan for centuries. Unsurprisingly, Japanese pay particular homage to corporate values as part of broader loyalty to communal and seniority values and principles. The zaibatsu system was, however, replaced by keiretsu system by which companies are no longer monopolies of a single family or board of directors but ones for which management is broken up and shared (Axiom). The change in Japanese business culture has been effected by Japan's defeat in World War II, a defeat which brought about changes in Japan's business practices and social life.
Further, Japan's business culture has long been dominated – particularly at higher levels of management – by Japanese only. However, due to internationalization of business, changing education norms and, not least, a gradual change in business practices in Japan, hiring foreigner for upper management posts is a notable pattern (Nezu, 2014). One most recent – and successful – example is Carlos Ghosn of Renault. A French executive hired to succeed Hasegawa, Ghosn has brought about a dramatic change in Nissan's corporate culture, a change which has not been possible by Japanese executives. Interestingly, in a business ecosystem which has been conventionally dominated by Japanese executives – not uncommonly related or associates – hiring foreigners in Japanese companies is a pattern which is increasingly adopted. If Tokyo remains Japan's most favored destination for international businesses to open shop or establish business connections (Axiom), Japan's corporate culture is in fact witnessing a comparatively rapid change in central and more remote regions as well.
On a micro platform, business in Japan is about formalities (Sauer). Being well groomed is one implicit practice business in Japanese companies require. Punctuality and doing what is supposed to be done is, as well, a formality which is most valued. Understandably, hence, paying specific attention to business formalities in Japanese business culture is only a favorable practice but also a sure guarantee of more harmonious relations at workplace.
Holding still on micro platform is business communication is conducted in Japanese companies. Given Japanese culture's emphasis on harmony and avoidance, Japanese workers avoid conflict among one another and, of course, seniors. As a collectivistic culture, Japan's business ecosystem is one marked by collaboration, established relations as well as extended work hours. If anything, Japanese workers stay longer at work not only for economic reasons – because of which existing staff has to work longer hours to make up for laid off staff – but also to enhance bonds between one another. Indeed, one adequate advice to give for a U.S assignee in Japan is to accept invitations for after-work socialization events. In addition to being valuable opportunities to enhance bonds, a U.S. assignee – who can associate freely at a U.S. workplace – can only enhance her understanding of not only Japanese business practices in a more relaxed context but also to network and socialize more effectively. Overall, communication in a Japanese business context is marked by implicitness. That is, given Japanese culture's emphasis on conflict avoidance, most business communication is conducted indirectly. This is, in fact, an aspect which cuts across all aspects of communication. For example, in response to criticism from a senior, a Japanese subordinate is not expected to argue or express open feelings about her senior's behavior. Indeed, compliance and abiding by senior's directives is not only required but also commendable in Japanese business culture. Notably, as well, introductions in business contexts are carried out in a very polite manner. Marked by a bow, formal greetings in a business context are performed to show welcome and respect to a business partner. Typically, a Japanese associate would bow to a U.S. international assignee in a business context and will avoid eye contact, particularly with a senior. Conversely, if a U.S. assignee in Japan bowed for a Japanese work associate, she would be commended, of course, for such a culturally sensitive act.
In more concrete forms of communication and movement, visiting and getting around in Japan would not, in fact, pose serious challenges to a U.S. assignee. Overall, Japan's infrastructure is highly developed (Axiom). This applies to public transportation as to communication facilities. Being an advanced economy, Japan enjoys a convenient and affordable public transportation system in addition to taxi company services which are active later after public transportation service is out of duty. Further, being a major electronics and communication equipment economy, Japan has a sophisticated communication infrastructure which makes international as well as national business more effective.
As noted, Japan business culture is opening up for international business leaders. This is manifest in an accelerating rate of bring in highly innovative executives and managers from international job market. Owing to perceived success, Japanese companies are giving away one characteristic feature of Japanese business context namely, keeping leadership "in family". That is, instead of conventional management styles adopted for centuries in Japanese business context – and which, in fact, still largely being in place – Japanese companies are no longer looking for Japanese leaders in-house but are, in fact, opening up to international job market. A successful case in point is Nissan as is noted above. This change does not only help making business in Japan a more open ecosystem but also leverages business across all value chains.
On a less positive note, however, a gender gap is still notable in Japanese business ecosystem. Based on a body of literature and empirical studies, women remains underrepresented in Japanese companies, particularly in leadership positions and are challenged by numerous workplace factors including, but not limited to, credibility, visibility and, not least, harassment (Napier & Taylor, 2011). This gender gap is not, in fact, one particular to Japan but is global. However, what makes Japan's case specifically challenging is a set of cultural values and beliefs which make leadership positions for women a particularly challenging job. In addition to lower representation of women's representation higher up in hierarchical organization – a characteristic feature which makes selection process more limited compared to a broader pool of male managers – Japanese business culture – and, for that matter, broader culture at large – emphasizes masculinity over femininity. This feature of Japanese culture might, indeed, be traced to Japan's Samurai history which emphasized masculine values and actions as opposed to negotiation and peace-keeping, a notable feature which was probably one underlying reason why Japan entered World War II.
As entrepreneurial initiatives are spreading globally and as more women enter into business by starting start-ups or engaging in community-wide projects (Lewis, Henry, Gatewood & Watson, 2014), representation of women in Japanese business has become a more pressing issue. Indeed, a U.S., female assignee in Japan is most likely to face serious challenges as she networks at workplace and socially for more integration and position assertion. Therefore, a female, U.S., female assignee needs to be better prepared for doing business in Japan against a backdrop of cultural resistance as well as gender gap.
Now, if for Japan's business ecosystem – as discussed – doing business in Japan is characterized by specific features which suggest business as well as social overlap on a regular basis a potential challenge, a quick reference should be made to comparative features in U.S. culture which makes such a challenge probable.
Compared to Japan's collectivistic culture, U.S. culture is individualistic. That is, if Japanese corporate culture – and, indeed, broader culture at large – emphasizes group action and collaborative work – which is manifest in after-work socialization and public rewarding and punishment instances – U.S. corporate – as well as broader culture at large – emphasizes and promotes individual initiative and personal choice. This applies, in both cases, across different business functions and activities. Accordingly, a U.S. assignee should be well aware of such a characteristic feature in advance.
For internationalization, U.S. companies do, indeed, enjoy a high profile, global presence. This presence is, moreover, characterized by diversity. That is, compared to Japanese companies, U.S. corporate culture has a long history of diverse workforces. As noted, Japan corporate culture is still entertaining diversity more or less reluctantly. This is, as noted, attributed to Japan's long history of family business and long-standing employment. Thus, by introducing a U.S. assignee into a Japanese company would require particular awareness of possible miscommunication and probably conflict in different incidences.
Compared to Japan's avoidance culture, U.S. culture is, in fact, one which promotes expression and discussion of problematic issues. If Japan's corporate culture emphasizes harmony and avoids conflict in interpersonal communication between staff – but more particularly between seniors and subordinates – U.S. corporate culture, in contrast, is one which promotes aggressiveness and more direct form of communication. Notably, whereas Japan's corporate culture is one which favors implicitness in all aspects of communication, U.S. corporate culture emphasizes explicitness. Again, a U.S. assignee in Japan would need to adjust her communication and interaction patterns with Japanese business and work associates such as to consider for communication styles.
For formalities, Japan's corporate culture is characterized by a higher degree of formalities at workplace compared to U.S. That is, if in a Japanese business context workers are required to dress smart and leave a great first impression, in a comparable U.S. context dress code is becoming more and more relaxed and is even business casual on Fridays. Further, comparable formalities are performed differently. If in a Japanese business contexts hands are shaken lightly, in a U.S. business context hands are shaken more firmly. As well, eye contact during or after greetings is performed differently. Whereas in a Japanese business context eye contact is indirect (and eyes are even closed upon bowing), in a U.S. comparable context, eye contact is direct either between seniors and subordinates or subordinates and subordinates.
For more concrete forms of communication – namely, public transportation and communication systems – Japan has a physical infrastructure which is comparable to U.S. This similarity should not pose serious challenges for a U.S. assignee in Japan. Notably, public notices and announcements – particularly in major cities – are in Japanese and English. Therefore, moving about in Japan should not pose serious challenges to a U.S. assignee.
Ideally, a U.S., female assignee requires adequate placement and relocation orientation. This could be a multi-phase process which cuts across different business functions and spans different periods. More specifically, a U.S. female assignee in Japan should receive a series of orientations prior to leaving. This series should cover main areas discussed above and be delivered by an in-house cross-cultural communication consultant, an external expert or an older assignee. Further, covered subjects should not be limited to broad exposure of Japan's corporate and community culture – a conventional focus – but should, more significantly, break up subject components into comparable features by which respective characteristics foe each culture is emphasized. There are, indeed, very different approaches as to how such orientations could be delivered. One possible approach is vignettes. By visualizing cultural contexts, different situations can, indeed, be experienced more effectively. By adopting a role play, moreover, a U.S., female assignee could, in fact, experience in person different conflict situations in an international business context both as a manger and a female. Upon arrival, relocation and a series of orientations should follow. These should cover similar areas covered in pre-travel orientations but, more significantly as well, social business manners. Given proximity of experiences, possible visits to business and social contexts could be made for more informed appreciation of host country's culture. Notably, cross-cultural communication competency should be incorporated in manager's periodic appraisals.
In conclusion, in order for a U.S., female manager to practice business in Japan, a basic understanding of host country's corporate and community culture is required. Japan, compared to U.S., has a very different culture. The Japanese culture emphasizes harmony, conflict avoidance, collectivism in action, preference for local "innovators" over foreign ones as well as a higher degree in business formalities. Japan has a transportation and communication infrastructure comparable to U.S. In order for a U.S., female assignee to adequately adapt to a Japanese business context, a proper set of cross-cultural communication orientations should be in place. International assignee should be assessed for cross-cultural competence as part of overall appraisal.
References
Axiom, P. I. (2003). Bering Guides: Business Travel in Japan. Retrieved from http://0-www.ebrary.com.opac.sfsu.edu
Lewis, V. K., Henry, C., Gatewood, J. E., & Watson, J. (Eds.). (2014). Entrepreneurship in the 21st Century: An International Multi-level Research Analysis. Surrey, UK: Edward Elgar Publishing.
Napier, K. N., & Taylor, S. (2011). Experiences of women professionals abroad: comparisons across Japan, China and Turkey. The International Journal of Human Resource Management, 13(5), 837-851. Taylor & Francis Online. doi: 10.1080/09585190210125949
Nezu, R. From globalisation to a new corporate culture. (2014). OECD Observer. Retrieved from http://www.oecdobserver.org/news/fullstory.php/aid/4339/From_globalisation_to_a_new_corporate_culture.html
Sauer, N. How to function optimally in Japanese work environment (2013, January 25). Japan Today. Retrieved from http://www.japantoday.com/category/opinions/view/how-to-function-optimally-in-japanese-work-environment
