Embracing excellence: how Japan's working culture and values shape business success

In a more competitive global market than ever, it is crucial for Japanese businesses to leverage their unique cultural values and organisational culture to distinguish themselves and drive sustained international success. 

Japan has consistently ranked among the top economies globally. However, it has been met with recent economic challenges. According to Reuters, Japan slipped into a recession at the end of 2023, losing its position as the world's third-biggest economy to Germany. With a nominal GDP of US$4.21 trillion in 2023, it fell behind Germany's US$4.46 trillion. Furthermore, local sectors that historically drove Japan’s economy, such as automobile and precision manufacturing, now face fierce pressures from the likes of China and South Korea.

Here are some tips for Japanese businesses and entrepreneurs to stand out in the global marketplace.

How does Japanese culture affect business?

Japanese culture profoundly influences business practices, creating a distinctive approach to commerce. These are the unique qualities that are often expected from Japanese businesses:

1. Leveraging a commitment to quality for global recognition 

Japanese businesses' unwavering dedication to quality, deeply ingrained in the national culture, can be a powerful differentiator in the global market. This relentless pursuit of excellence, evident in meticulous design, stringent quality control, and a focus on exceeding customer expectations, can establish a reputation for reliability and superior craftsmanship that resonates with international consumers seeking premium products and services.

2. Punctuality as a business strategy

The ingrained respect for punctuality in Japanese culture can be a competitive advantage in the global arena. This cultural value, seen as a sign of professionalism and respect, translates into meticulous adherence to schedules and deadlines. Such dependability can set Japanese businesses apart in a competitive landscape where delays and missed deadlines can have costly consequences.

3. Politeness in negotiations

Politeness, deeply ingrained in Japanese social norms, plays a strategic role in business negotiations. This approach, prioritizing mutual respect and understanding, can build trust and goodwill with foreign partners, paving the way for successful long-term collaborations. 

The importance of navigating international business etiquette

While Japanese business etiquette, rooted in tradition and respect, is undoubtedly effective within its cultural context, the global marketplace demands a more nuanced approach. As local businesses expand beyond national borders, they will encounter diverse cultural expectations and practices and failure to acknowledge and adapt to these differences can lead to misunderstandings, missed opportunities, and even strained relationships.

Cultural quirks in businesses around the world:

Work-life balance: While overtime is commonplace in Japan and the US, work-life balance is highly valued in many European countries. Contacting business partners outside of working hours can be perceived as disrespectful.

Gift-giving: In Japan, gift-giving between businesses is a nuanced art form with specific protocols. However, in some cultures, lavish gifts can be seen as bribery.

Greetings: While a firm handshake is common in many Western cultures, a bow is the traditional greeting in Japan. In some cultures, cheek kissing or even nose rubbing might be the norm.

By understanding and respecting the cultural norms of their international partners, Japanese businesses can demonstrate their commitment to collaboration and mutual respect. This adaptability not only fosters smoother communication and prevents cultural faux pas but also builds trust and goodwill, essential ingredients for successful long-term partnerships.

Mastering international business etiquette

Navigating the nuances of international business etiquette is pivotal for Japanese companies seeking to expand their global reach, as doing business with local and international clients is vastly different. Here are the key pillars that businesses should focus on:

1. Building cross-cultural competence

Cross-cultural competence and international business skills are vital for Japanese businesses looking to successfully expand globally. Train sales employees on negotiation styles, business etiquette, communication preferences, and leadership perceptions to enhance collaboration.

This is also essential to minimize misunderstandings, enhance productivity, and foster strong, trusting relationships.

2. Research local customs

To build strong relationships with international partners, businesses must research local customs and etiquette. Understanding greetings, gift-giving, dining, and communication styles prevents misunderstandings and shows respect. Japanese businesses should invest time in learning local practices to adapt their business culture globally.

3. Adapt negotiation tactics

Japanese negotiation styles, often characterised by indirect communication and consensus-building, might not always align with their international counterparts. Hence, businesses should adapt negotiation tactics accordingly. This could involve being more direct in some situations or more flexible in decision-making.

4. Establish communication protocols

Clear and effective communication is paramount in international business dealings. Therefore, Japanese businesses should implement clear protocols for communication, such as preferred channels, response times, and language usage, to prevent misunderstandings and ensure all parties are on the same page. Businesses should also consider leveraging technology and translation services when necessary to further enhance communication and bridge language barriers.

5. Prioritise relationship building

Building trust and personal connections is important in many cultures and is familiar to Japanese businesses. However, adapting strategies to local cultures is crucial. This involves getting to know international partners, understanding their business practices, and showing genuine interest in their success.

Strategic adaptations for global success

Aside from modifying their business culture and etiquette, Japanese businesses can achieve global success by aligning their operations with international standards without sacrificing their core values. Here are some strategies for effective adaptation:

1. Conducting global market analysis

To stay ahead, Japanese businesses must analyze global markets, identify trends, assess competitors, and understand regional preferences. This proactive approach helps anticipate shifts, seize opportunities, and stay competitive globally.

2. Adopting a customer-centric approach

Customer-centricity is key to global success. Japanese businesses excel in attention to detail and quality, enabling them to create products that resonate with international customers. By seeking feedback, researching markets, and tailoring offerings, they build strong relationships, drive loyalty, and unlock revenue.

3. Technology integration

Technology empowers Japanese businesses to streamline operations and enhance customer experiences. By investing in digital tools, they automate processes, improve efficiency, and gain insights into customer behavior. This includes customer relationship management (CRM) systems, data analytics for personalized marketing, and tailored product recommendations.

4. Investing in risk management

Entering international markets brings risks and uncertainties like exchange rates, political instability, and regulations. Japanese businesses need strong risk management strategies to identify, assess, and mitigate challenges. Thorough due diligence, contingency plans, and continuous monitoring are crucial. 

5. Networking

Japanese businesses can leverage their reputation for trust and commitment to form strategic alliances with global partners. Participating in trade fairs and networking events helps businesses to connect with potential partners, gain insights, and access new markets. These relationships provide support, knowledge-sharing, and distribution channels for sustainable global growth.

Integrating cultural values with DHL Express Japan for logistics excellence

Partnering with DHL Express Japan benefits Japanese businesses expanding globally. DHL's precision and efficiency integrate Japanese cultural values into shipping strategies. 

DHL’s digital shipping tools enable easy, transparent and controllable shipment arrangement and tracking. Furthermore, our vast global presence and expertise in over 220 countries and territories makes DHL your best logistics partner to navigate international shipping complexities in a sustainable way. 

Open a business account today to unlock reliable and efficient global shipping solutions that fulfil the needs of your business.