Japan Business Practices, Customs, and Negotiation Tips

Communication Style and Language in Japanese Business

When negotiating in Japan, it is best to observe a highly deferential communication style, as opposed to a confrontational one. Debate and an open show of disharmony will make a negotiator seem rude rather than dominant or skillful. Disagreement should be expressed as indirectly as possible. Even if an American feels that he or she has "won" a particular argument — because an apparent concession was made in the form of a Japanese counterpart uttering "maybe" — this in fact likely means that the proposal is still rejected, according to the tactful, less overt style of cultural communication typical in Japan.

Japan ranks highly among nations that prize deference to formality in business protocol and dress. Wear formal clothing during all business meetings and observe a structured format during discussions and negotiations. However, after-hours socializing as a sign of respect may be necessary, as Japanese businesspeople frequently enjoy partaking in local sake bars after a long day of talks and may invite their foreign visitors along. Certain formal protocol should be observed here as well. "When toasting, the glass is never left unfilled. Drinking is an important part of Japanese culture. It is a way to relieve business stress." (Williams, 2003, "Behavior") Allow the host to pay, as this is expected. Also, if you invite your Japanese negotiators to a Western-style establishment, insist on paying, although the Japanese will make a show of attempting to pay. Discussing business during such social sessions, provided it is done with respect for authority, is considered acceptable.

Although it may seem obvious, it bears repeating to American businesspeople that Japan is a non-English-speaking nation. Although many Japanese study English in high school, the emphasis is on writing, reading, and grammar rather than speaking, so fluency cannot be assumed even if one's Japanese hosts have a grasp of basic English phrases. Their ability to speak may not match their ability to comprehend spoken English.

English and Japanese belong to entirely different language families, unlike, for example, German or French and English. Word approximations or even mimicking the sounds of the other speaker's language can therefore prove difficult. Japanese speakers may be more inclined toward silence than is comfortable in an American context. The Japanese do not feel a need to fill every pause in a conversation; in fact, attempting to do so may even seem rude.

Nonverbal Communication and Business Correspondence

"Japan has a population of approximately 125 million people packed tightly into a rather small geographic area." (Williams, 2003, "Introduction") Personal space is highly valued. "Because the Japanese live in such a densely populated area, they value their personal space." (Williams, 2003, "Appearance") Expect to be densely packed when traveling via Japan's famous bullet trains and subways, but in the boardroom, show great respect for personal space, particularly with those of greater seniority on the Japanese corporate hierarchy. Unlike in America, sustained eye contact upon meeting a new acquaintance is considered rude rather than polite. Nor is a constant smile considered de rigueur as an expression of friendliness. (Williams, 2003, "Appearance")

The Japanese are likely to know that shaking hands rather than bowing is considered appropriate by Americans, but be prepared to bow nonetheless. One lesser-known fact is that Americans should avoid making the "OK" sign, as in Japan it signifies money rather than affirmation. Pointing is simply considered rude.

As in all nations with different nonverbal protocols, avoid using large hand gestures, extremely animated facial expressions, or dramatic movements that could be misinterpreted. Although the Japanese may be prepared for American communication differences, it is worth remembering that the Japanese do not talk with their hands, and doing so with great animation could distract rather than assist communication. (Williams, 2003, "Appearance")

Negotiations may begin with an exchange of business cards. In Japan, business cards are called meishi, which are given and received with both hands. Presenting such a card to one's host is a token of respect for Japanese culture. Cards should be printed in English on one side and Japanese on the other, and should be presented with the English-language side facing up. (Williams, 2003, "Communication")

Cultural Norms, Religion, and Organizational Structure

Japan does not have an official religion. However, one common phrase applied to the nation is "born Shinto, die Buddhist," reflecting the comfortable interplay between multiple religions in Japan, along with a strong Confucian respect for age inherited from Chinese culture. This blending of religious traditions may strike Westerners as surprising. Japan is also not, by and large, a Christian country. Although Christian holidays such as Christmas have grown more popular, they are not part of Japanese spirituality on the whole.

Despite the respect accorded to old age, Japan also has a great fascination with what is new — hence its proficiency in technology. Japanese people are intensely proud of their culture, history, and heritage. As an island nation, Japan's population is relatively homogeneous compared to the United States. Japanese negotiators may not be fully aware of American diversity or assumptions about race and ethnicity, and may hold different views about the value of a pluralistic society than their American counterparts.

Teamwork and respect for hierarchy and position are fundamental in Japan. The folk saying "The nail that sticks up gets hit with the hammer" is often quoted to illustrate this point. (Williams, 2003, "Appearance") Even after hours, Japan's collectivist emphasis is evident: it is considered impolite to pour a drink for oneself — a drinker should always allow his or her companion to pour. (Williams, 2003, "Behavior") For a broader overview of how collectivist cultures shape workplace behavior, comparative cultural research offers useful context.