Connecting Japanese Companies with Global Ventures

Abstract

After more than 13 years of business slump in Japan and worldwide, many high-tech companies are struggling to remain competitive. Faced with the need to stay profitable, a common response of such companies in Japan has been to cut their investment in R&D. Heavy cuts in R&D have led to a lack of innovation, with the associated threat to future growth. Global ventures now constitute a major source of innovation, but during the past few years high-tech venture companies have struggled to identify strong Japanese firms that can manufacture innovative technologies they have developed. Many such ventures have tried to establish relationships with Japanese companies, but differences in culture and management structure have prevented successful interaction. In response to this problem, GVIN (Global Ventures Industries Network) was established to provide ‘Ba’ – opportunity and place – for direct interaction between the top management of both global ventures and Japanese companies. This is achieved by means of presentations and, especially, through face-to-face meetings. The GVIN experience has highlighted many issues, especially those relating to cultural differences – national cultures, large and small companies, east and west. Addressing these differences is not easy, but it is essential if the aims of GVIN are to be achieved. This paper describes the experience of starting and managing GVIN and highlights the issues that have emerged.