What should a foreign executive know about Japanese business culture?
Foreigners Employment Support Organization (FESO) ／ Published ／ Last updated
This article is a translation of the Japanese original. Where the two differ, the Japanese version prevails.
Read the Japanese original（日本語版を読む）
Answer
At the root of Japanese business culture lie 3 things: respect for the other party, the building of long-term relationships of trust, and a high sense of professionalism. Understanding not only the language but also the values and patterns of behaviour behind it is the key to succeeding in business in Japan.
What is this enquiry about?
This is a summary of the commercial customs that foreign executives who have started, or are already running, a business in Japan will want to understand.
Subject: running a business in Japan, and commercial customs
Situation: a foreign executive who is starting a business in Japan, or already running one.
Question: What should I know about Japan's distinctive business culture?
Japanese business culture varies by industry, region, generation and so on. What follows is offered as a general tendency, and does not apply to every situation.
How much courtesy and modesty is expected?
Greetings on first meeting, the etiquette of exchanging business cards, and language that shows respect are the first step in building a relationship of trust.
In Japanese business settings, courtesy and modesty are valued very highly.
Polite language: you are expected to use the appropriate 敬語 (honorific language) — 尊敬語 (respectful forms) and 謙譲語 (humble forms) — according to the person and the situation.
Exchanging business cards: hand and receive them politely with both hands, and take care to note the other party's company name and job title. It is usual not to put a card you have received away straight away, but to leave it on the table during the meeting.
A modest manner: rather than showing off your achievements or abilities, dealing with the other party in a modest manner is preferred.
What are the features of Japanese organisational culture?
Seniority and group-mindedness remain deeply rooted; decisions take time, but once made they are carried out with force.
In many Japanese companies, large ones above all, a culture of 年功序列 (seniority) and group-mindedness is still deeply rooted.
年功序列 (seniority): age and length of service, and not individual ability alone, can affect promotion and terms of employment.
Group-mindedness: there is a tendency for the view of the team or of the organisation as a whole to be given more weight than the view of the individual. Reaching a decision can take time, but once something has been decided the whole organisation puts it into practice.
報連相 (ho-ren-so: reporting, informing and consulting): reporting, informing and consulting your superiors and colleagues as appropriate is regarded as very important for work to run smoothly.
How do I build relationships of trust?
By putting long-term relationships ahead of short-term profit, and building trust over time.
Building relationships of trust: it takes time to build a relationship of trust with a business partner, but once you have earned that trust, the chances of a long-term business partnership grow.
根回し (nemawashi): exchanging views and making adjustments among those concerned in advance of a formal meeting — 根回し — may be said to be an important process that leads to smooth decision-making.
義理人情 (giri-ninjo: obligation and human feeling): in business too, weight is sometimes given not only to the formal contract but also to emotional ties of obligation and human feeling.
How much attention to time and to detail is needed?
Punctuality, care over detail, and confirmation in writing at the end are taken as signs of a professional attitude.
Punctuality: keeping strictly to meeting times and deadlines is basic. Being late is regarded as causing the other party considerable trouble.
Care over detail: a thoroughgoing attention to detail, in preparing material and in product quality, may be valued. This is because many people take pride in the work they do.
A preference for things in writing: agreement reached orally matters too, but in the end weight is given to a contract or confirmation in writing.
Should I take part in drinks and social gatherings?
Unless you have a particular reason not to, taking an active part is considered desirable.
Drinks and social gatherings outside working hours are regarded as important networking occasions that deepen communication with colleagues and business partners.
Taking part is encouraged: unless you have a particular reason not to, taking an active part is considered desirable.
Behaving as the occasion requires: keep within reasonable bounds and take care not to make the other party uncomfortable.
An occasion for communication: it is a good chance to talk in a relaxed atmosphere about things that are hard to raise in the course of ordinary work.
What should I bear in mind in order to succeed in Japan?
4 points: a willingness to learn, careful communication, trustworthy partners, and patience.
A willingness to learn: make an effort to learn about and understand Japanese business culture and customs.
Value communication: pay attention not only to words but also to non-verbal communication (facial expression, manner and so on).
Find trustworthy partners: it is important to find specialists who know Japanese business well — a lawyer, an accountant, a certified administrative procedures legal specialist (gyoseishoshi) — and business partners you can trust.
Build relationships patiently: a long-term view matters in Japanese business. Do not rush; build relationships of trust steadily.
You are expected to understand the differences from the business culture of your own country and to respond flexibly. There may be times when you are at a loss, but by understanding these features and taking them on board actively, you should be able to make your business in Japan a success.
Frequently Asked Questions
What is the etiquette for exchanging business cards?
Hand and receive them politely with both hands, and take care to note the other party's company name and job title. It is usual not to put a card you have received away straight away, but to leave it on the table during the meeting.
Why do Japanese companies seem slow to decide?
Because there is a tendency towards group-mindedness, in which the view of the team or of the organisation as a whole is given more weight than the view of the individual. Once something has been decided, however, the whole organisation puts it into practice.
What is 根回し?
It means exchanging views and making adjustments among those concerned in advance of a formal meeting. It is regarded as an important process that leads to smooth decision-making.
If we agree orally, is a written contract unnecessary?
In Japan the preference for things in writing is strong. Agreement reached orally matters, but in the end weight is given to a contract or confirmation in writing.
This article provides general information. Immigration rules change, and outcomes depend on individual circumstances. Please check the Immigration Services Agency website or consult a qualified specialist.
This page is a translation of the Japanese original. Where the two differ, the Japanese version prevails.
