The biggest cultural differences between Japanese and German business

Japan and Germany are two of the world's leading developed economies. When it comes to business between the two countries, cultural differences can pose challenges, but they can also open up new possibilities. Understanding these differences is key to building a strong partnership.

1. Communication Style

• Germany: Emphasizes direct and clear communication. It is common to express opinions straightforwardly.

• Japan: Uses indirect and delicate expressions, valuing harmony in the culture. Criticism is often conveyed in a roundabout way.

  
  

2. Decision-Making Process

• Germany: Decisions are made quickly after discussions. Decision-making authority often lies with individuals such as leaders.

• Japan: Emphasizes consensus-building (ringi system), and decision-making takes time. Even small decisions require many approvals.

  
  

3. Perception of Time

• Both countries are strict about time, but:

• Germany: Values efficiency and deadlines. Meetings start on time and are structured.

• Japan: Places importance on preparation and building trust, which can result in longer decision-making processes.

  
  

4. Hierarchy and Roles

• Germany: While hierarchy exists, organizational structures are relatively flat, and subordinates expressing opinions to superiors is not unusual.

• Japan: Strongly values hierarchy. Seniority and vertical relationships influence communication and decision-making.

  
  

5. Risk Management

• Germany: Open to taking risks if there is a logical plan.

• Japan: Tends to avoid risks, making decisions cautiously to avoid failure or embarrassment.