May 25, 2026 Thank you for reading. In this series, I discuss cultural differences between Japan and Western countries. This time, however, I would like to share my experience of how the exclusive distribution rights through a joint development project with a Korean company were eventually overturned when a US company entered the market later. 🔵 Joint Development with a Korean Partner and the Exclusive Rights We Secured in Japan When I was serving as an executive overs

Japan–Western Cultural Differences Ver13 “Western Bonus vs Japanese Bonus – part2” In the previous article (Ver12), I explained the structural differences between Western-style bonuses and Japanese bonuses. Here are several additional points summarized in a simple Q&A format.

Japanese bonuses function as part of living income, unlike Western performance‑based bonuses. This article explains the cultural, structural, and financial reasons behind Japan’s bonus system and why foreign HQs often misunderstand it.

In foreign-owned subsidiaries in Japan, the GM’s legal responsibilities often exceed what their title conveys. This article explains why title misalignment occurs, how HQ and Japan interpret roles differently, and what both sides should understand to ensure effective leadership and credibility.

European headquarters often set Japan’s salary‑increase rate based solely on inflation, but this approach ignores Japan’s unique labor‑market reality. Japan’s salary‑increase budget frequently exceeds inflation, and inflation‑based raises lead to real wage declines, lower motivation, and reduced competitiveness. True global management requires a Think Global, Act Local approach grounded in Japan‑specific data.

European HQ mandated an urgent shift to BEVs for SBTi compliance, but Japan’s field operations could not support BEV use. This ideological–operational gap created major misalignment, requiring a practical compromise to protect service quality.

Japanese customers often react strongly to a direct “No” because they rarely hear it in business settings. Using a one‑step cushion and later offering an alternative helps maintain trust and enables more constructive communication.

This article highlights the cultural gap in how Japan and Western countries view apologies. While Japanese customers expect “I’m sorry” as a relationship‑building ritual, Western HQ avoids it due to liability concerns—creating real friction in business.

This article explains why Japan’s “So‑Yu‑Wakede” meeting style leads to vague agreements and slow decisions. Rooted in relationship‑preserving culture and conflict avoidance, it contrasts with Western decision‑making. The article also shows how insufficient nemawashi and sudden HQ decisions create friction in foreign‑owned Japanese subsidiaries, highlighting the PMO’s role in bridging these gaps.

Global MATRIX structures often fail in Japan because LOB‑based KPIs assume dedicated teams, while Japanese subsidiaries must cover multiple businesses with limited headcount. LOB and Entity KPIs conflict, priorities collide, and workload concentrates on the local team. This is not a cultural issue but a structural mismatch in organizational design.

Many foreign companies choose China as their APAC headquarters for logical reasons—market size, supply‑chain concentration, and fast decision‑making. However, this China‑centric model often fails to align with Japan’s unique industrial market, where technical depth, long‑term relationships, and exceptional service expectations define competitiveness. Successful foreign companies in Japan share one trait: they grant the Japan entity sufficient autonomy in service strategy, cus

Foreign industrial companies often underestimate how different Japan’s expectations are from the rest of the world. In Europe, once a product performs as specified, the job is considered done. In Japan, trust is built through responsiveness, attentiveness, and after‑sales commitment that goes far beyond engineering excellence. Late‑night support calls, immediate on‑site visits, and detailed follow‑ups are not “over‑servicing” — they are proof of long‑term partnership. Underst

Western companies are renewing their focus on Japan, but capital alone won’t ensure success. Japan’s trust architecture—consensus decisions, long‑term reliability, and high expectations for after‑sales responsiveness—requires deeper understanding and stronger local empowerment.

This post introduces my background and explains the “So‑Yu‑Wakede” communication style often seen in Japan, where meetings end without clear decisions. I discuss how this differs from Western expectations and why it can cause misunderstandings.