Japanese Business Etiquette Using GLOBE Models Of Culture

Analysis

Discuss about the Japanese Business Etiquette using GLOBE Models of Culture.

Japan is a sovereign island in East Asia that offers immense opportunities for business. In order that business in Japan prospers and achieves success certain business cross cultural etiquettes needs to be adhered to (House R. J., 2013). A business cultural etiquettes of Australia differs highly from those of Japan. Japan is a conservative society that has its own ways and techniques for conducting business. Communicating to a business partner in Japan hence needs appropriate mannerism along with appropriate styles. GLOBE study, which is an acronym for Global Leadership and Organisational Behavior Effectiveness was aimed at providing a bridge to cross-cultural communications. The scope of this essay analyses pertinent cross-cultural styles that are effective for Japanese business communication for a business partner from Australia according to GLOBE study (Avolio, 2007).  

GLOBE study primarily focuses on analysis of 62 worldwide societal cultures that are predominant in nature. GLOBE study is considered more applicable considered to Geert Hofstede’s study on cross culture as it analyses cultures and not national identities. Japan along with other Asian countries was grouped under Confucian Asia group (Naidoo, 2011). Each unit of cultures were further divided and sub-divided into nine units or dimensions of cultures as performance orientation, institutional collectivism, gender egalitarianism, uncertainty avoidance, in-group collectivism, future orientation, humane orientation, assertiveness and power distance. Along with such cultural identities GLOBE study asserted six different types of leadership dimensions as Charismatic or value based, team oriented, humane oriented, participative, self-protective and autonomous. Hence, these parameters once analyzed cross-cultural differences with Japan can easily be diagnosed (Okoro, 2012). 

Figure 1: GLOBE Study

Source: (Tung, 2010)

Performance orientation reflects the extent to which a community has regards for innovation, high standards in performances. As practiced across Japan is rated medium 4.22 in nature and is very close to average GLOBE score. Hence, behavior in accordance to performance orientation needs not be stressed upon or be aggressive in nature, while conducting business in Japan (Du-Babcock, 2014). Institutional Collectivism is a parameter where a community shows respect for collective distribution of its resources. Japanese culture has a high regard for collective behavior and scores 5.19 against GLOBE average of 4.25. They are a closely knit society where decisions of elders and seniors are regarded as against individual efforts. Hence, in order to conduct business in Japan individual from Australia, which is a more individualistic society needs to have regards for collectivism. Gender Egalitarianism is an aspect where a culture aims at reducing gender inequality between males and females of the society (Egan, 2008). Japan is below GLOBE score for this measure with an average of 3.19 against GLOBE score of 3.37. Men and women conduct business with almost equal dignity but there are no especial endeavors meant for women, though it is not purely a male dominating society. Uncertainty avoidance parameter reflects social norms for avoiding unpredictable future events. Japan has a low score of 4.07 as against GLOBE score of 4.16 which depicts that they are less likely to indulge in situation that have unfavorable outcomes or futures. Business etiquettes depicts more regards for planned progress rather than unplanned nature. In-group collectivism reflects an individual’s regards for loyalty to families and organisation. Japan has a lower score of 4.63 as against GLOBE average of 5.13. This depicts that though they prefer to act in group but they are more concerned with individual success and so on. Business conduct in Japan needs to be more focused on providing benefits to the partner rather than benefitting the entire society. Future Orientation is Japan is above the GLOBE score and it reflects the societies vision and planning towards its future. While GLOBE average is at 3.89 for Japan it is 4.29, meaning that businesses expanding to Japan needs to depict their plans for the future (Shi, 2011).

Figure 2: Cultural Values in Japan

Source: (globeproject.com, Retrieved on 13th August 2017

Humane Orientation is an aspects which reflects the degree to which an organisation encourages for being fair, friendly, caring towards others. Japan ranks more in this respect 4.3 as against GLOBE score 4.09. This reflects that they have high regards for individual who are friendly and caring or has feelings for others. Assertiveness is an aspect where individuals assert their rights and behaviors on the other, by depicting dominance or aggression. Individuals in Japan are less assertive considered to those in Australia as they have a score of 3.59 against GLOBE score of 4.11 (Scagliotti, 2010). Power distance depicts the degree to which a society has regard for power, position and authority. Japan has high regards for power, authority and position scoring 5.11 as against GLOBE score of 4.01. Thus, businesses in Japan needs have regards for leaders and other people who are in power.

Figure 4: GLOBE Study  Japan

Source: Author

Analysis of leadership style in Japan reflects six parameters, which analyzed can reflect true nature of their leaders. Charismatic or value based leadership reflects a Japan’s leader being visionary, inspirational, self-sacrificing, with high integrity, decisive, performance oriented hence scores 5.94. GLOBE score on this parameter is only 5.63 hence individual conducting business with these parameters are more likely to be appreciated in the country. Team oriented reflects being collaborative, having team integration characteristics, diplomatic, malevolent and having administrative capabilities. Japan scores 5.56 in this regards as against GLOE score of 5.61 (House R. J., 2010). Humane oriented reflects characteristics of modesty and being human oriented. Japan scores below this parameter 4.68 as against GLOBE average of 5.04, which reflects Japanese high regards for achieving perfection as the country has contributed in numerously towards quality measurement tools and techniques.  

Figure 3: Leadership Values in Japan

Source: (globeproject.com, Retrieved on 13th August 2017)

Participative characteristics reflects being autocratic and participative in nature, where Japan scores 5.07 which is higher compared to GLOBE score of 4.99. Leaders in Japan like to contribute to business with their though processes and discusses various issues with their team mates (Javidan, 2009). Self-protective nature reflects being self-centered, status conscious, face saver or being procedural in nature. Japan has a low score of 3.60 in this respect as against GLOBE average of 3.72, hence leaders have less of such attributes as present in Australia. Autonomous reflects characteristics of individualism, independence, being autonomous and unique in nature. In Japan the score is 3.67 as they enjoy relatively being low Autonomous as compared to GLOBE average score of 3.72. 

 

Figure 5: Leadership Style Japan

Source: Author

There are large levels of discrepancy amongst business procedures in Australia and Japan, while Australia is a Westernized society, Japan comprises of a closely knit society. Leadership styles and ways of conducting businesses differs widely in Japan as those practiced in Australia. Japan is not an individualistic society as compared to Australia, hence they have closely-knit communities and society. They are hardworking individuals who strive to attain excellence in every sphere of business they practice. They are more serious and extend conscious efforts for establishing excellence. With constant hard-work and striving for quality they have achieved success in various spheres, they demand respect for the same. Due to high disparities in cultures there remains potential for cultural miscommunications occurring between the two country’s individuals. As a country’s social cultural inheritance determines our aspects of communications and conduct. An Australian business person is more likely to be more open and adopt free communication styles, which might not be appreciated by Japanese businesses. With appropriate practice such challenges can easily be overcome and attended to, for business success. 

From above analysis of cross-cultures it can easily be understood that Japan is a much more conservative country as against Australia. Norms, regulations and methods of conducting business in Japan are very different and unique to its culture. Thus, in order to conduct business in Japan there needs to be more serious and conscious efforts developed targeted at achieving success towards a planned future. As they are generally risk averse in nature, an appropriate business plan with risk mitigation matrix will help achieve success. Australians conduct businesses with more passion orientation, which cannot be easily understood in Japan, as they are more practically oriented. Thus, a blue-print for the business will help establish a successful partnership. Cross-cultural communication gaps and other techniques for managing business needs to be appropriately diagnosed such that adequate strategies can be developed and applied.        

They do not allow free mixing and take their businesses very seriously. Their high level of dependence on quality reflects their levels of seriousness with which they do business. Hence, adopting to such business etiquettes and mannerism will help conduct business in Japan easily. A business person planning to expand to Japan needs to abide by these cultural parameters as people of Japan has high regards for them. 

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