Even though Japan is mostly westernized it remains being traditional Japanese. It
has a hierarchically structured culture and society and contains complex rules for
interpersonal situations and relationships (Kazuo Nishiyama, 2000, p. 1-9). The
Japan culture and society varies from the German. Those differences in cross-
boarder alliances are sources of potential conflicts and misunderstandings in
business relationships (Susan C. Schneider and Jean-Lois Barsoux, 2003, p. 9).
Especially the way of verbal and non-verbal communication: Japan is a high
context culture. Many information lay “between” the lines (in the context).
Germany in contrast to that is a low context culture. They give precise information
in a direct way. Japanese are more introverted and restrained than the Germans.
The importance of face keeping (for e.g. not showing emotions public) is another
main difference. In Japan the status of a person (often linked to its age and
experience) is important (Edward T. Hall and Mildred Reed Hall, 1987, xvi). But
also some little specific differences can cause huge problems. For example the
differing attitude towards bribe and gifts can cause difficult misapprehensions.
This summary of some of the main differences shows that there are many
varieties that can cause problems in business. This gap between the German and
the Japanese culture is unconditionally to considers, important to know in detail
and very helpful to internalize in doing business with Japan as a German
company.
Table of Contents
1. Executive Summary
2. Terms of Reference
3. Analysis of the current situation
3.1. PEST/PESTEL Analysis
3.1.1. Political Factors
3.1.2. Economical Factors
3.1.3. Sociological Factors
3.1.4. Technological Factors
4. A cultural comparison between Germany and Japan
4.1. Preface
4.2. Power distance
4.3. Uncertainty avoidance
4.4. Individualism
4.5. Masculinity
5. Analysis of Japanese business behaviour
5.1. Introduction
5.2. Basic differences in communication
5.3. Initiating Business Contacts and establishing a relationship
5.4. Time and punctuality
5.5. Negotiating, selling and making contracts
5.6. Decision making
5.7. Further worth knowing things making business with Japanese
5.7.1. Business Cards and Introduction
5.7.2. Questions one should expect
5.7.3. Japanese and the German language
6. Solution and recommendations
7. Forecasts/Outcomes:
Objectives and Topics
This paper serves as a strategic briefing for a German automotive company executive regarding potential joint ventures in Japan. Its primary goal is to provide a practical guideline for navigating Japanese business culture by mitigating risks associated with cultural misunderstandings and differences in professional conduct.
- Analysis of the political, economic, social, and technological environment in Japan.
- Cultural comparison between Germany and Japan using Hofstede’s dimensions.
- Strategies for communication, relationship building, and business etiquette.
- Best practices for negotiations, decision-making, and contract finalization.
- Specific cultural insights regarding business cards, language barriers, and social expectations.
Excerpt from the book
5.2. Basic differences in communication
Edward Hall differentiates high-context and low-context cultures. In low-context cultures language is precise and clear. Language is used direct and explicit. People do not need to read between lines – messages are easy to understand. In high-context cultures communication depends on the current situation and the people involved. Messages are often communicated via things that are not said and between the lines. People have to read non-verbal signs and body language (Edward T. Hall, 1977, p.105-117). Germany is such a low-context culture – people are expected to “come to the point”. Japanese culture is a high context culture. Edward Hall (1976) and L. Robert Kohls (1978) even think that Japan is the culture with the highest context and German is the culture with the second lowest context (after Swiss Germany). So this means that it s both important and difficult for German Businessmen to consider the different communication styles when dealing with Japan. They have to take the spoken word into the whole communication context before construing it (Gary P. Ferraro, 2002, p. 58).
Having a consensus during conversations is crucial for Japanese. A collective nature and a master shared value system was historical necessary. Consensus management is a main subject of daily communication in organizations (Albert Koopmann, 1991, p.79). One of the most obvious things for western businessmen in Japan is that the word “no” does not seem to exist. Instead of “no” Japanese use subtle nonverbal signals like scratching the head or prolonged silence (Kazuo Nishiyama, 2000, p.96). In Japan “yes” have just a different meaning. There are even seven different pronouns for the English word “yes” (or in this case for the German word “Ja”) and they all have different intents (different levels of politeness). For example in Japanese it is normal to say “Yes, I do not agree”. In English language it is “No, I do not agree” as it is the same in German (“Nein, ich stimme Dir nicht zu”).
Summary of Chapters
1. Executive Summary: Provides an overview of cultural differences, emphasizing that Japan remains a traditional society despite being westernized, and identifies potential sources of business conflict.
2. Terms of Reference: Details the scope of the briefing paper, which is to provide an executive at Wiesmann GmbH with cultural guidelines for potential joint ventures in Japan.
3. Analysis of the current situation: Conducts a PEST/PESTEL analysis to evaluate the political, economic, sociological, and technological landscape impacting business in Japan.
4. A cultural comparison between Germany and Japan: Uses Hofstede’s dimensions to compare power distance, uncertainty avoidance, individualism, and masculinity between the two nations.
5. Analysis of Japanese business behaviour: Examines practical aspects of Japanese professional life, including communication, etiquette, relationship building, and decision-making processes.
6. Solution and recommendations: Offers actionable advice on bridging cultural gaps, suggesting that preparation and potentially using interpreters are key to successful business interactions.
7. Forecasts/Outcomes:: Discusses the necessity of further comprehensive analysis, such as SWOT, before entering into long-term business commitments in the Japanese market.
Keywords
Japan, Germany, Business Culture, Cross-Cultural Management, PESTEL Analysis, Hofstede’s Dimensions, Communication Styles, High-Context Culture, Relationship Building, Negotiation Tactics, Joint Venture, Corporate Etiquette, Decision Making, Business Ethics, Cultural Differences.
Frequently Asked Questions
What is the core purpose of this paper?
The paper is designed as a briefing document to prepare a German business executive for interactions and potential joint ventures with Japanese companies by highlighting cultural disparities.
Which central topics are addressed?
Key areas include a PESTEL environmental analysis, a comparison of cultural values based on Hofstede's framework, and specific guidelines for Japanese business etiquette and communication.
What is the primary objective or research question?
The objective is to provide a practical guideline that helps an individual avoid common cultural pitfalls when doing business in Japan.
Which scientific methods are utilized?
The paper employs a PESTEL analysis for the environment and applies Hofstede’s cultural dimensions (Power Distance, Uncertainty Avoidance, Individualism, Masculinity) to compare German and Japanese professional behaviors.
What does the main body cover?
It covers theoretical background on cultural differences, analysis of Japanese business behavior, communication strategies, and specific rituals like business card exchanges and the role of gift-giving.
Which keywords best characterize this work?
The work is defined by terms such as Cross-Cultural Management, Japanese Business Culture, Hofstede's Dimensions, and Business Etiquette.
Why is the "Iceberg theory" relevant to this document?
The Iceberg theory suggests that obvious cultural behaviors are merely the tip of the iceberg, and it is vital to understand the underlying values and invisible assumptions to succeed in Japan.
How should a German manager handle the Japanese word "yes"?
A manager should be aware that "yes" in Japan often indicates that the message has been heard, not necessarily that the speaker agrees, making it distinct from Western usage.
What role does status play in Japanese business meetings?
Status is paramount; it determines the order of business card exchanges and who is allowed to arrive late, necessitating that German visitors treat status with high regard.
What is the importance of "face-saving" in this context?
Face-saving is central to Japanese interaction; public correction or direct rejection is seen as rude and can permanently damage trust and the potential for a business relationship.
- Quote paper
- Sarah Nagel (Author), 2009, Basic guideline for a German company to do business with Japanese companies, Munich, GRIN Verlag, https://www.hausarbeiten.de/document/160758
