Expatriate Management: U.S. to Japan Using Hofstede's Framework

Introduction

Japanese corporations and Japanese culture in general have become increasingly Westernized over the past several decades. However, this does not mean that all differences between Japan and the United States have been eradicated. There is still a great deal that the American expatriate needs to know about doing business in Japan before embarking on such a venture.

With so many cultural differences, adjustment on the part of the expatriate can be challenging. These stressors can be reduced, however, if the expatriate feels confident that he or she is well versed in the workings of the foreign culture. According to Peltokorpi (2008), "expatriate language proficiency, type, and the personality traits of emotional stability and cultural empathy have a positive influence on both non-work- and work-related adjustment" (p. 1588). Human resource managers are in a unique position to help the expatriation and repatriation process go as smoothly as possible.

One helpful tool that has often been used by human resource managers to identify differences and bridge the gap between foreign countries attempting to do business with one another is Geert Hofstede's Cultural Classification Theory. This paper uses Hofstede's theory to analyze the opportunities and risks of an expatriate of a U.S. corporation conducting business in Japan.

Hofstede's Cultural Classification Theory

Successfully conducting business in Japan requires HR personnel to conduct a great deal of research into the nature of the business culture, the ethical standards of the country, and the rules of business etiquette—all of which tend to differ significantly from those Western managers are used to. This is where Hofstede's Cultural Classification Theory can be particularly helpful.

According to Hofstede, there are five different cultural dimensions that help determine how a certain culture conducts business, negotiates, and deals with conflict. These dimensions are power distance, individualism versus collectivism, masculinity versus femininity, uncertainty avoidance, and long-term versus short-term orientation.

Power Distance and Hierarchical Structures

Power distance refers to the accepted level of inequality among the people of a community or nation. There are certain characteristics associated with high power distance and others associated with low power distance. For example, according to Goodwin (1999), "People in high power distance cultures experience greater uncertainty and anxiety when communicating with people higher in status than do members of low power distance cultures" (p. 26). Furthermore, in high power-distance cultures, "subordinates and managers perceive themselves as unequal, and subordinates depend more on the management and are expected to 'do as they are told.' Interpersonal contact between levels of the hierarchy is initiated by superiors" (Goodwin, p. 142).

Goodwin adds that numerous factors can be influenced by high power distance versus low power distance negotiating styles. For example, low power distance groups are egalitarian in nature and are therefore more likely to perceive injustice. High power distance groups, which are hierarchical in nature, are more likely to legitimize inequality.

According to Hofstede's Power Distance Index, Japan has a higher power distance than the United States, with the former scoring 54 and the latter scoring 40. Therefore, American business leaders need to be formally trained to recognize important cultural differences such as the fact that in Japan, employees are more subordinate to managers than they are in the United States, and that there may be a level of anxiety during communications because of the differences in power distance.