The Japanese are world class negotiators and do business very differently than their American counterparts. “The negotiation process differs from culture to culture in language, cultural conditioning, negotiating style, approaches to problem-solving and building trust” (Moran, Remington Abramson & Moran; pg. 74). Negotiating is a part of everyday life, but in business it’s absolutely critical to your success. Poor negotiation can cripple a company just as quickly as losing key customers. Doing business overseas, specifically in Japan, there is much to consider before you take that 17 hour flight forward and open the door to the several Japanese business associates waiting to meet you.
Maintaining balance and harmony is an important aspect of Japanese thought. Japanese do not want to “lose face,” (Moran, Remington Abramson & Moran; pg. 85) and they also do not want to cause you to “lose face.” Culturally, “saving face” is of utmost importance. One who loses face in front of his or her peers is politically injured or destroyed. It is never proper to criticize or humiliate another in public. Conflict is avoided at all costs.
Silence at a negotiation is common and appreciated by the Japanese (Moran, Remington Abramson & Moran; pg. 86). Silence is a time for thought and reflection. As negotiators, the Japanese speak less than most cultures and especially less than the Americans, who they view has blabbermouths, unpredictable, and selfish. When the Japanese do speak in a negotiation, it is almost always in the form of questions to get the other party to reveal information. This approach is also why it so hard to negotiate with them; it is nearly impossible to get them to disclose their interests or motivations. “Personality dimensions are universal to all humans regardless of their culture. If you understand the dominate personality types in the culture where you are doing business, and you understand your own personality predilections, you may have a useful and simplified stereotype to work with” (Moran, Remington Abramson & Moran; pg. 68).
Context of time is also a key factor when doing business overseas. Negotiating in Japan is a marathon, not a sprint, and in terms of business negotiations, especially large ones, are likely to take place over a longer period of time than in the West. A delay in reaching a decision is not a reflection of a Japanese counterparts inefficieny. For instance, For westerners may find themselves complaining that on 6 visits to a company they will be met by 18 different people in groups of 3 and will have to say the same thing six times. This is time-consuming but necessary for the Japanese, as all the members of the group have to become acquainted with the visitors. After this ordeal, Westerners often press for a quick decision. They will not get one. If they impose a time limit, the Japanese will back out quietly. “Negotiating is not a theoretical activity. It is a face-to-face activity, kind of like a dance where partners in the dance influence each other” (Moran, Remington Abramson & Moran; pg. 71).
When negotiating in Japan, you will likely face a team of negotiators across the table, (Moran, Remington Abramson & Moran; pg. 85). A key challenge will be to identify the real decision maker in the group — there is usually only one — and the individual or individuals who can influence the decision maker. “When people communicate, they make certain assumptions about other’s process of perceiving, judging, and reasoning patterns. Correct assumptions facilitate communication, but incorrect assumptions lead to misunderstandings, and miscommunication often results” (Moran, Remington Abramson & Moran; pg. 76). Thus, when dealing with a Japanese company that may, superficially resemble your own, do not assume similarities that are not there. Japan has modernized, not westernized, and true similarities are mainly only technical. Don’t assume that they mean the same as you do when they use words like leadership or motivation. They have something quite different in mind.
Why are Japanese companies so successful? If there is one key to Japanese success it is their ability to conduct a company’s internal affairs in a spirit of harmony and cooperation. Many foreign companies never do start business in Japan (or only enter the Japanese market through a distributor) simply because of the misconception, fueled by those infamous myths and misconceptions of doing business in Japan. Often times labeling the business culture is somehow too risky. Fortunately, Japanese business culture is not an impenetrable barrier to successful business in Japan. “In face-to-face negotiations, we give and receive nonverbal behavioral cues. Some argue that these cues are the critical messages of negotiation” (Moran, Remington Abramson & Moran; pg. 77). We must remember that personality and context are also determinates of behavior in any on country. “Behaving as an effective negotiator involves great skills of resilience, forbearance, emotional intelligence, thoughtful listening and the consideration of all sides of the argument” (Moran, Remington Abramson & Moran; pg. 71). Effective business negotiation is a core leadership and management skill. This is the ability to negotiate effectively in a wide range of business contexts. As more businesses expand their focus to include foreign markets, the demand for competent international business negotiating professionals increases. “In face-to-face negotiations, we give and receive nonverbal behavioral cues. Some argue that these cues are the critical messages of negotiation” (Moran, Remington Abramson & Moran; pg. 77). We must remember that personality and context of a culture are also determinates of behavior in any on country and can critically influence your strategy going into an international negotiation. Remember, in some cultures the turtle is more respected that the hare.
Reference
Moran, R. T., Ph. D., Remington Abramson, N., Ph. D., & Moran, S. V., MA. (2011). Managing Cultural Differences (9th ed.). London: Routledge
Negotiations take such a long time to complete because in the beginning, neither party trusts the other. The point is that the negotiations will only succeed if trust is built (Bethel & Melfi, 1997). The Japanese know this and will usually not even discuss business until the two sides get to know each other through a series of meetings solely focused on entertaining (Martin, Herbig, Howard, and Borstorfff, 1999). The reason for the time spent together outside of business deals and to provide entertainment is to get to know the other side. In a social setting we are likely to show more of who we really are. One way that is accomplished is through revealing ourselves through our stories. I personally know people who will tell their stories to complete strangers, yet these same people are liked more than any others I know. When I saw John Sadowsky’s (2012) video explaining that this is a fundamental trust builder, I knew that it definitely is spot on. He premised this by pointing out that we trust about thirty percent of the people around us, yet we trust about seventy percent of the people we know.
Bethel, T.; Melfi, C. (1997). The Failure of Gissel Bargaining Orders. Hofstra Labor Law Journal 14(2), 423-464.
Martin, D. Herbig, P., Howard, C., & Borstorff, P. (1999). At the table: Observations on Japanese Negotiation style. American Business Review, 17(1), 65-71. Retrieved from http://search.proquest.com.ezaccess.libraries.psu.edu/docview/216298486?pq-origsite=summon&accountid=13158
Sadowsky, J. [John Sadowsky] (2012, February 9). John Sadowsky talks about trust, stories of identity and leadership. . Retrieved from https://www.youtube.com/watch?v=mBIQxXJ3ZDc