Introduction
The cultural background of the market plays a vital role in deciding whether to expand a business. Asian culture and environment are undeniably quite unusual for Australian companies and, in some cases, require a costly adaptation strategy. Therefore, it is crucial to analyze not only the legal and political peculiarities of a country but also the potential risks associated with cultural premises. This paper aims to investigate cultural factors’ role in business expansion to Singapore and Japan.
Singapore
There is a number of key cultural considerations when planning a business expansion to the country. Despite its status as a modern and advanced Asian country, Singapore still follows some patriarchal principles even in the corporate world. For example, Singaporeans treat their elders with great respect (both in age and rank). This fact is essential to consider in negotiations and acquaintances: people should be introduced to each other following their position level.
Moreover, it should be understood that Singaporeans are very open and tactile. They can easily ask personal questions without considering it something indecent. The openness of the interlocutor is crucial for them, so they expect detailed answers to their questions and do not restrain themselves in tactile gestures. All this is primarily due to the fact that Singaporeans value personal contact with a potential business partner or colleague and strive to build a trusting and almost friendly relationship. Only after establishing mutual respect and trust can an entrepreneur count on long-term productive cooperation on the best terms.
Nonetheless, in communication, Singaporeans tend to be more indirect than Europeans. They pay attention to the tone of voice, intonation, and use of expressions and, therefore, may interpret what is said in a distorted way due to this cultural peculiarity. They often dodge specific answers, avoiding the word “no”; instead, for example, promising to give a proposal a second thought. In general, Singapore combines an Asian patriarchal multi-religious culture with Western economic and social standards.
Japan
Japan, in turn, is more susceptible to the influence of national traditions on corporate relations. The main distinguishing features of Japanese business culture are most likely to be authoritarian leadership and an almost complete absence of balance. Overworking, refusing to take leave, and unquestioning obedience to a superior colleague are among regular practices in Japan. All these are components of unspoken office etiquette, which is based on the opinion that the more an employee works, the more he is motivated and respectful to his superiors.
Moreover, leaving before the boss is considered bad form in Japan and can be perceived by the team as selfishness and vanity. That being said, productivity does not play a significant role in Japanese corporate culture. In principle, such practices adopted in Japan may be very far from the modern Western view of the company, where it has long been accepted that an employee’s efficiency does not depend on the time spent in the office.
Recommendations
Overall, culturally, Singapore again wins over many Asian countries and Japan in particular. Despite some peculiarities in corporate traditions and relationships, these prerequisites do not pose a threat to business expansion with the proper level of awareness. The same cannot be said for Japanese practice. In the long run of the company, the obsession with subordination and the culture of processing can have a detrimental effect on the reputation of a Western company. Therefore, the Australian manufacturing firm is recommended to consider Singapore as a new market for expansion.