Internationalization of Japanese

Firms

By Moeko Hiraoka,

Sophia University, Japan

History of Internationalization in

Japan

© Moeko Hiraoka, 2010

• 60s: Textile• 70s: Steal, TV• 80s: Automobiles,

Semiconductors

• International capital flow• Development of transportation and communication technologies• International specialization• Introduction of foreign labor• IT technology

Capital, Companies, Consumers and Informationmove across borders

What is Necessary for

Internationalization?

To be competitive, it is necessary for Japanese firms to operate internationally.

A weak point of Japanese firms is

“Communication Style”

Sharing Corporate Philosophy, Vision and Values

is Important

© Moeko Hiraoka, 2010

Communication StylesCommunication Styles

• Communication gap

• Conceptual gap

• Context gap

• Japanese tend to avoid conflicts

• Vagueness is considered a virtue

– Nemawashi(根回し): Pre-meeting discussion and

informal information exchanges

– Unanimous agreement

– Time consuming

Problem: How to deal with Conflicts

Understanding differences

© Moeko Hiraoka, 2010

Leadership

� Top-Down

decision making

� Leader is responsible

� Charismatic leader is desired

� Bottom-up

decision making

� Little personal responsibility

� Leader who can motivate people in Genba is desired

Genba(現場)*

Top

Managers

Western Companies Japanese Companies

*Genba(現場): the actual place where work-related activities happen

© Moeko Hiraoka, 2010

To be Competitive inTo be Competitive in

International MarketsInternational Markets

• Understand both strong points and weak points of Japanese management style

• Keep the strong points

• Improve the weak points

– To be able to communicate corporate philosophies,

vision and values

– To be able to be competitive internationally

© Moeko Hiraoka, 2010

These slides are part of a student podcast project related to the book “J-Management: Fresh Perspectives on the Japanese Firm in the 21st Century” edited by

Dr. Parissa Haghirian of Sophia University, Tokyo, Japan.

For further information about the podcasts and the book, please visit www.parissahaghirian.com

These slides are to be used for teaching and educational purposes only.

About This Project