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Hofstede Analysis Comparison between the USA and Japan
Jonathan Musangu
Liberty University
BUSI604: International Business
Dr. Rossano Gerald
July 5, 2024
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HOFSTEDE ANALYSIS COMPARISON BETWEEN THE USA AND JAPAN ASSIGNMENT
Hofstede Analysis Comparison between the USA and Japan Assignment
The cultural dimension theory developed by Hofstede provides a framework
for understanding cross-cultural business practices and national cultural differences. In other
words, the framework serves as a tool to distinguish between different national
cultures, highlight cultural specificities, analyze their effects, and facilitate communication
in different contexts, including business and diplomacy.
Dutch management scientist Geert Hofstede developed Hofstede's cultural dimension
theory in 1980 after extensive research in the 1960s and 1970s to examine the differences in
values between the many business areas of the multinational computer manufacturer IBM.
1. From the perspective of a Hofstede Analysis, what are the differences and
similarities between Japan and the USA?
USA’ Hofstede Analysis
Power Distance Index in the USA
This dimension, which emphasizes the American concept of "liberty and justice for all",
gives the United States a low score of 40. The emphasis on equal rights in all areas of American
life and politics is further evidence of this. In corporate America, managers rely on the expertise
of individual employees and teams, and hierarchy is imposed for convenience. In addition,
guides are always available. In addition, communication is immediate, relaxed, and interactive.
Collectivism vs. Individualism in the USA
With a score of 60, the US has an individualistic culture that is based on the idea of
"liberty and justice for all." The focus placed on equal rights in all spheres of society and
government is indicative of this. In American companies, managers rely on the knowledge of
individual workers and teams, and supervisors are reachable. In a loosely linked community
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where people are expected to take care of themselves and their families, communication is
informal, direct, and participatory. The United States is a cultural melting pot where white
people tend to be more individualistic than other ethnic groups. The recruiting, promotion, and
decision-making processes are merit-based, and Americans are used to conducting business and
communicating with strangers.
Uncertainty Avoidance Index in the USA
The United States ranks below average, scoring 46 on the uncertainty avoidance
dimension. Therefore, the behavior of Americans is influenced more by their perceived life
context than if the culture had a higher or lower rating. Innovative products, fresh ideas, and the
desire to try new things are welcome, whether they are related to technology, business, or
cuisine. Americans are more open to the thoughts and opinions of others and support freedom of
speech. However, compared to countries with higher scores, Americans are less emotionally
expressive and do not need much restraint.
Femininity vs. Masculinity in the USA
The United States has a high rate of masculinity since every person there is a man. Even
as young children, they typically want to win whatever they do; they have an ardent desire to be
the greatest. This mindset is quite common among Americans in the economic sector. Wojdylo et
al. claim that their ultimate objective is financial gain, which explains the "live to work" mindset.
With this growth in money, people may live better lives, demonstrate their elevated position, and
flaunt their affluence. Americans' level of life rises each time they receive pay increases.
Short-Term vs. Long-Term Orientation in the USA
In this dimension, the United States receives a score of 50, indicating the absence of a
dominating preference. Americans tend to analyze added information to ensure its veracity, on
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the one hand. This should not be confused with the "can-do" attitude that reflects how practical
Americans are. Due to the quarterly release of profit and loss accounts by American
corporations, which evaluate performance in terms of short terms, employees are incentivized to
work quickly.
Restraint vs. Indulgence in the USA
The United States has a normative score of 68 on the sixth dimension, which, when
combined with its contradictory attitudes and behaviors, is reflected in its Indulgent (68) society.
The country has been at the forefront of the war on drugs and continues to do so, but the rate of
drug addiction in the US is higher than in many other wealthy nations. The US is a prudish
society, but even some well-known televangelists seem immoral.
Japan’ Hofstede Analysis
Power Distance Index in Japan
Japan is a hierarchical society, with a score of 54, which is moderate. Yes, Japanese
people behave appropriately and are always aware of their place in the social hierarchy. Because
of their business experience with the agonizingly slow decision-making process—every choice
must be verified by every hierarchical layer and then by the top management in Tokyo—some
foreigners perceive Japan as being very hierarchical. The Japanese educational system is heavily
influenced by the idea that all people are created equal and that anybody can succeed and
become anything if they work hard enough—yes, that still applies to men.
Collectivism vs. Individualism in Japan
Japan contains a score of 62 for independence. The characteristics of an individualistic
culture are apparent in Japanese society. Not at all like China and Korea, Japanese society does
not hone the amplified family structure. Within the paternalistic nation of Japan, the eldest child
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gotten the family title and belonging from his father. The more youthful kin were constrained to
move out of their parents' house and live with their essential relatives. Japanese people are well
known for being given to the company they have chosen for themselves—an act of
independence. The Japanese in-group could be portrayed as situational. Compared to most other
Asians, Japanese individuals are more hesitant and shrouded.
Uncertainty Avoidance Index in Japan
Japan is renowned for having a high degree of uncertainty avoidance (92), partly because
of the continual threat posed by typhoons, earthquakes, tsunamis, and volcanic eruptions. As a
result, people now live extremely ritualized lives where every detail is planned out for maximum
predictability. Life is quite ritualized; etiquette manuals describe what to wear and how to
behave at certain occasions. Public employees and educators are hesitant to take actions without
precedent. There is a strong requirement to eliminate ambiguity in corporate Japan since
feasibility studies and risk considerations are carefully addressed before any project can begin. In
Japan, it is challenging to implement changes due to the elevated level of uncertainty.
Femininity vs. Masculinity in Japan
Femininity vs masculinity illustrates how culture shapes accomplishment,
competitiveness, and success; it also depicts a value system that begins in education and
throughout an enterprise. Japan is seen to be among the nations with the highest levels of
masculinity in the modern world. The greatest measure of masculinity in our culture is the
intense rivalry that begins in kindergarten. Fulop & Gyori 2021 state that there is intense rivalry
in both sports and education to identify the smartest and greatest players and teams. Corporations
in Japan fight fiercely with one another, demonstrating that competition is necessary for firms to
succeed.
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Short-Term vs. Long-Term Orientation in Japan
Japan is one hundred percent long-term oriented society. The Japanese see life as a short
chapter in the vast history of humankind. According to this point of view, the Japanese are used
of fatalism. People follow moral guidelines and true examples of virtue as guidelines for life. In
the Japanese business world, sustainability is demonstrated by, among other things, persistently
high investment rates, higher equity capital, and a focus on steady market share growth rather
than quarterly profits. All of these contribute to the longevity of businesses. The basic principle
is that companies exist to serve stakeholders and society for many generations, not to maximize
profits for shareholders every quarter.
Restraint vs. Indulgence in Japan
Japan's low score of 42 shows that its culture is one of limitation. Social orders that score
ineffectively on this measurement are more likely to be cynical and negative. Moreover,
Controlled societies limit the fulfillment of their wishes and put less esteem on recreation time
than Liberal civilizations do. People who recognize this perspective accept that societal rules
constrain their behavior which it is some way or another dishonorable to enjoy themselves.
Similarities
On the lower end of the power distance index, Japan and the United States are
comparable, with Japan having the highest PDI score. However, both are low, indicating that
both nations value consultative decision-making. A consultative method to decision-making is
preferred by subordinates in nations where superior authorities have less power disparities,
which encourage more compromise solutions. This indicates that subordinates and superiors are
interdependent. In terms of masculinity, Japan is quite masculine, whereas the United States is
only masculine. The widely acknowledged belief is rooted in the well-known Japanese work
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ethic, which is a cultural trait that is not unique to Japan. It is well known that Americans work
excessive hours and take insufficient vacation time. Despite its high ranking, Japan is neither
overworked, as is widely believed, nor does this imply that every Japanese firm overworks its
workforce. More flexible work schedules are the result for both Japan and America.
Differences
A seniority structure in business is highly valued in Japanese society. One's working
hours determine their opportunities for promotion. Oftentimes, output volume takes precedence
over quality. That is not to argue that they do not try to do tasks with diligence. They know that
putting forth their best effort is a terrific way to represent the group since they encourage
teamwork. Compared to the United States and Europe, gender norms are ingrained in Japanese
culture. Regarding gender equality, they come in third from the bottom. The Japanese are not an
egalitarian society; rather, they adhere to a hierarchical system of government. The distinction
between superior and inferior is clear.
The distinction between a short-term and long-term focus is another. Japan's culture is far more
long-term oriented since it adheres to traditional values and beliefs. Japan often places more
emphasis on future growth than on fleeting delight. They do not seek quarterly or short-term
benefits even through their enterprises, as they will be concentrating on long-term sustainability.
In this dimension, the United States exhibits distinct behavior. The pursuit of temporary
happiness is highly valued in American culture, which contributes to the country's extremely low
average score.
2. What are the implications for USA businesses that wish to conduct business
in Japan?
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HOFSTEDE ANALYSIS COMPARISON BETWEEN THE USA AND JAPAN ASSIGNMENT
There are some significant ramifications for American companies looking to do business
in Japan. It is critical to recognize that individuals in Japan and the USA are not the same.
Americans need to recognize that the Japanese have quite distinct thought processes to create a
solid business plan that will be implemented successfully. Businesses from the USA that operate
in Japan must demonstrate long-term promise rather than relying solely on quarterly
performance.
Giving the locals a positive impression of one's company is imperative, particularly if one
has a high uncertainty avoidance index. To participate in or make investments in US enterprises,
they require this level of assurance. However, it is crucial that a nation first evaluate the costs
associated with setting up shop in another nation. When joining the corporate world abroad, it is
also critical to comprehend local business practices and company cultures.
Conclusions Regarding the Similarities and Differences
This aspect of culture has the real power to create or break a commercial deal or a
connection between different countries or organizations. The value of effective communication
in business has finally started to sink in for the Japanese. For many years, the Japanese Business
English Association—which was established in 1934—has worked to promote the use of
contemporary American business communication (Johnston, 2016). One of the most often used
languages in international commerce is English. Despite having a widespread English education
program, Japanese people still struggle greatly when it comes to speaking in the language.
The problem is that, although they were taught how to read and write in English, they
were never given any opportunities to speak or listen to it. The incapacity of the Japanese to use
English as a functional language is one of their main communication issues (Johnston, 2016).
It is always expected for Japan and the USA to have parallels and distinctions because of the
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distinct histories and ideals that have molded their cultures. This is always to be expected in any
country where there are racial and historical differences. In conclusion, every nation seeking to
invest in a foreign nation must respect and value that nation's culture to prosper economically. It
is crucial to respect the ways in which their societies function. A climate of acceptance fosters
the creation of an efficient business.
How Could USA Managers Use the Above Information to Create and Sustain Competitive
Advantages When Doing Business with Japan?
USA business managers can use this knowledge to maintain and build a competitive
advantage when doing business with Japan. According to Anna (2017), a company's competitive
edge should be a motivating factor to generate services and goods at lower costs and higher
quality than rivals. Business managers should always evaluate business models in foreign nations
where they plan to invest, and they can do this successfully by applying Hofstede's methodology.
America and Japan have different philosophies on orientation. To ensure that American
investment in Japan considers Japanese viewpoints, the US must begin adopting long-term
strategies like those employed in Japan. Managers ought to contrast the aspects in the USA and
Japan that could make their investment more difficult. Managers might use Hofstede's research
in surveys to offer competitively advantageous business concepts.
How Might a Christian Manager/Leader Prepare to Address the Differences and
Similarities While Working in That Nation?
America and Japan have different philosophies on orientation. To ensure that American
investment in Japan considers Japanese viewpoints, the US must begin adopting long-term
strategies like those employed in Japan. Managers ought to contrast the aspects in the USA and
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Japan that could make their investment more difficult. Managers might use Hofstede's research
in surveys to offer competitively advantageous business concepts.
Romans 12:18 states that getting along peacefully with others is vital. Christian managers
ought to model such peaceful coexistence with others. Christian executives in the US should
incorporate Japanese elements into their companies considering several Bible texts. The religious
affiliations of many nations vary. Christian leaders should make sure they establish a calm
atmosphere that promotes economic success to conduct business in Japanese culture.
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