Strategy implications of business culture differences between Japan and China

Abstract

PurposeTo identify characteristics of Japanese business culture that differ from China, particularly in the dimensions of ‘high context’ versus ‘low context’’ and collectivism versus individualism.Design/methodology/approachApplication of the concepts in cross‐culture research suggested by Hall (1976), Hofstede (1980) and Trompenaar and Hampden‐Turner (1998) and on the base of comprehensive field visits and observation undertaken in China and Japan over the past several years.FindingsThe Japanese culture can be characterized as highly tacit and group‐centered, whereas Chinese culture is more explicit and individualistic.Research limitations/implicationsArguably the absence of a large body of supporting data represents a limitation in the methodology of this article. Future survey based research and further conceptualization on different kinds of collectivisms and individualisms will supplement this article.Practical implicationsVery useful advice in aspects of communication, human relations management, recruitment, and management control systems for international business management developing business opportunities in Japan and China.Originality/valueThis article elucidates the differences in business culture between Japan and China and shows to the global business community that a differentiated view of international business management in Japan and China is necessary.