The Japanese negotiation style

Dos and don’tsThe Wabusiness culture

Dos and don’tsbusiness cultureNegotiators

The Wabusiness cultureConclusions

Hofstede dimensions

Dos and don’tsThe Wabusiness culture

Power distance Individualism Masculinity Uncertainty avoidance

Long-term orientation

5446

95 9280

90

3042

90

JapanRomania

Dos and don’tsThe Wabusiness culture

• The japanese are somewhat hierarchical

• Not as much as other Asian cultures

• Slow decision making

• Meritocratic society

Power distance = 54

Dos and don’tsThe Wabusiness culture

• The harmony of the group stands above individual needs

• Strong sense of shame and of losing face

• Japanese are seen as collectivistic by Western standards and individualistic by Asian standards

Individualism = 46

Dos and don’tsThe Wabusiness culture

• Severe competition between groups

• Drive for excellence and performance

• Japanese are notorious for their workaholism

• It is still hard for women to climb the corporate ladder

Masculinity = 95

Dos and don’tsThe Wabusiness culture

• One of the most uncertainty avoiding cultures on Earth

• In Japan, anything you do is prescribed with maximum predictability

• Etiquette books describe what people should wear and how they should behave at special events

• Changes are difficult to realize

Uncertainty avoidance = 92

Dos and don’tsThe Wabusiness culture

• The Japanese see their lives as a very short moment in the history of mankind

• High rate of investment in R&D

• Priority to steady growth rather than quarterly results

• Companies are here to serve society for many generations to come, not for short-term profits

Long-term orientation = 80

Dos and don’tsbusiness cultureNegotiators

1. Establishing a personal relationship is crucial

• It’s a good idea to get to know the Japanese negotiator beforehand

• Meet him/her for dinner or other events

• Relationships are core assets

Dos and don’tsbusiness cultureNegotiators

2. Avoid lawyers as negotiators

• The Japanese mistrust a negotiator that pushes for the advantage of one side rather than for a fruitful cooperation

• They see lawyers as outsiders

Dos and don’tsbusiness cultureNegotiators

3. Speak clearly and avoid idioms

• Language barriers

• The use of a basic vocabulary is advised

Dos and don’tsbusiness cultureNegotiators

4. Explain ideas several different ways

• They will not tell you if they don’t understand

• Ask the negotiator what he/she likes or dislikes about the proposal

Dos and don’tsbusiness cultureNegotiators

5. Avoid addressing the Japanese as “you”

• In the Japanese language, “you” is rarely used

• Example: Mr. Tanaka or Mitsubishi instead of you and your company

Dos and don’tsbusiness cultureNegotiators

6. Indirect no

• The Japanese will avoid saying NO directly

• Look for more subtle signs

• Avoid direct NOs yourself

Dos and don’tsbusiness cultureNegotiators

“The Japanese rollercoaster”

initial phase

point of acceptance

Relationships are extremely important

The Japanese are very competitive (success is important)

They will try to avoid uncertainty whenever possible (hence the rigid rules and procedures)

The emphasis is on long-term value and cooperation

business cultureThe WaConclusions