Sociocultural underpinnings of Japanese business practices and the Canadian perception

Abstract

This study represents an exploratory examination into the Canadian perception of various Japanese business practices. Salient features of Japanese business practices which Canadians may encounter when doing business with the Japanese are explained and assessed with respect to the need for their understanding and their seriousness as problem areas. This study is divided into two parts. In the first part, five major sociocultural concepts that underlie the Japanese business practices are examined: group orientation, vertical hierarchy, harmony, amae, and an implicit communication style. From these fundamental concepts all aspects of Japanese business practices are derived and originated. These practices include the more concrete customs of exchanging business cards, bowing, and gift giving to the less tangible aspects such as the time required to make decisions and the extensive use of personal connections. In the second part, the results of a survey on the Canadian perception are presented. These results indicate that Canadian businessmen perceive some significant differences between their business systems and practices and those of the Japanese but these differences are not considered to be serious problems in doing business with the Japanese. The three most problematic aspects are practices related to the process of decision making whereas the customs of exchanging business cards, gift giving and bowing are the least problematic.