Values to Keep in Mind When Doing Business in Japan
By Clark Roundy, Luxul Wireless VP of Marketing
One of the most frequent pieces of advice about doing business in Japan is to “know the culture.” But what exactly does that mean? For starters, it’s important to recognize the American and Japanese value systems don’t always align with each other. While a single blog entry could never come close to addressing the complexities of the Japanese value system, at a high level here are a few values to keep in mind when entering the Japanese market:
Value 1: Nothing is more important than relationships
In American business, logic is almost the highest of virtues. Present a sensible argument that clearly demonstrates a win, and generally you will have management support. In Japan, decisions aren’t always logical—rather, they are more typically based on relationships. Never assume that presenting a logical argument will get you the deal. Certainly, present the argument so the value is understood, but focus your efforts on gaining the trust and respect of your potential customers.
Value 2: Don’t ever let your partner lose face
In Japanese society, the concept of “Saving Face” is intertwined with the role of relationships. We discussed this concept last week, so I won’t rehash it here. Just keep in mind that the Japanese avoid embarrassment at all costs. Anything you do to either cause or help diffuse a potentially embarrassing situation will be remembered. Help your partner find a solution to a possible loss of face and you will have a friend, advocate and strong supporter for life.
Value 3: Find the right balance between “being Japanese” (i.e. when in Rome) and being a foreigner
As a foreigner, you need to know when it is necessary to act Japanese and when it’s appropriate to benefit from your own cultural diversity. A common mistake Americans make when trying to do business in Japan is to go to one extreme or the other. They either come in with this “cowboy” attitude or go way overboard trying to be totally Japanese. Keep in mind that the Japanese expect something different from foreigners and there are distinct advantages that can be gained by sharing your culture, while also being respectful of the Japanese culture.
Value 4: Be patient
In general, Americans are impatient—we want things done NOW. That’s because our goals and expectations are typically based on monthly and quarterly timeframes. The Japanese mindset is much more long-term in nature. While having many of the same short-term financial pressures, they look at time differently and prioritize accordingly. This doesn’t mean that you’re destined to only long-term success. It simply means that in entering the Japanese market, your initial goal must be to align interests. In doing so, you will break down a lot of barriers and shorten the sales cycle.
Doing business in Japan can be both frustrating and deeply rewarding. Do your homework so you go in with your eyes open. Then, be culturally aware—realizing that you may need to adjust your own thoughts about how business should be done.
About Clark Roundy, Luxul Wireless VP of Marketing
Clark Roundy is VP of Marketing at Luxul Wireless. Throughout his 20 year career, he has worked extensively with early stage and emerging companies to identify core competencies and implement key growth strategies. Mr. Roundy has held key executive positions at Linux Networx, Penguin Computing, Parvus Corporation, Alta Technology, and the Eyring Research Institute. His roles have included sales and marketing leadership, strategic planning, international business development, product management, and professional services program development. In his role at Luxul Wireless, Mr. Roundy is responsible for marketing strategy and oversees all outbound marketing programs as well as product and brand management.
The content of this blog reflects the views and opinions of the author, and not necessarily those of Utah Business.
Tags: Business in Asia, Business in Japan, Cultural Differences, Distribution Partnerships, international business, International Expansion