This is the translation version of https://nazolab-japan.com/?p=176.
Over the course of my career, I have worked both within traditional Japanese corporations during the economic bubble era and, for the past 25 years, at the Japanese subsidiaries of global (primarily American and European) firms. Through this journey, I’ve directly experienced the cultural and operational contrasts between Japan and the West—not as theory, but as lived reality.
To be clear, I do not mean to criticize Japanese business practices simply because they differ from Western ones. Every country has its own legal and cultural context. However, the global business environment is evolving rapidly, driven largely by advances in technology—and that evolution is increasingly shaped by Western (especially American) models of management and innovation.
A Growing Imbalance
If we compare the globalization of Japanese companies with the entry of global enterprises into Japan, a clear imbalance becomes evident: the momentum is significantly stronger on the side of global firms entering Japan, not the other way around.
This brings us to what I call the third mystery:
Why do Japanese companies continue to view global business through a domestic lens, while global companies take a systematic, data-driven approach to entering and expanding within Japan?
And how is this disconnect leading to massive missed opportunities—not just for companies, but for the Japanese economy and society at large?
Misaligned Expectations, Missed Potential
In my nearly two decades as an analyst of a global research firm, I’ve had countless conversations with both Japanese enterprises and global technology providers looking to succeed in Japan. One of the biggest challenges I’ve faced is articulating this cultural and strategic gap in a way both sides can understand.
Put simply:
- Japanese firms—particularly those with a purely domestic customer base—often show limited interest in global trends, preferring to rely on established, inward-facing business practices.
- Meanwhile, global firms approach Japan strategically, evaluating potential ROI, market entry risks, and operational models long before making a move.
This disconnect often results in failed implementations. For example, many Japanese companies adopt global software packages for business transformation, only to later claim “it doesn’t fit our way of doing things,” incurring substantial losses.
A One-Way View?
Many Japanese professionals are indeed aware that a gap exists—but their awareness often comes from a one-directional perspective: looking at the world from Japan. What’s often missing is the reverse lens: understanding how Japan is perceived by the rest of the world.
Studies such as IMD’s World Competitiveness Ranking have consistently pointed out Japan’s declining global standing:
- Lack of international experience among business leaders
- Low efficiency in management and operations
- Limited agility in responding to global market changes
A Critical Choice for Japanese Businesses
If Japanese companies aim for sustainable, long-term growth, then aligning with global trends and frameworks is no longer optional—it’s essential. While there are certainly success stories of Japanese firms embracing globalization, they remain the exception, not the rule.
From my perspective, far too many companies remain stuck in legacy thinking, falling behind as the rest of the world moves forward.
What This Blog Aims to Explore
This blog category is dedicated to exploring and demystifying the gap between Japanese companies’ domestic perspectives and the expectations of global markets. If you’re wondering things like:
- “Why is Japan so different in its business approach?”
- “Why do foreign firms struggle in Japan?”
- “Why do Japanese companies resist global methods?”
I hope to offer insights that bridge those questions with practical, respectful understanding. My goal is simple: to support the evolution and revitalization of Japanese business in the global economy.
If you have thoughts, questions, or suggestions, please don’t hesitate to leave a comment or reach out through the contact form.