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Business Etiquette in Japan: Why Intercultural Competence is so Important

The de:hub initiative is heading to one of the world's most exciting technology hotspots—Japan—this September. Along with many partners from the Berlin ecosystem, the plan is to explore Tokyo and Osaka and network with industry-leading companies and potential partners. The right etiquette is especially important, as business life in Japan is often more complex than in other countries.

So, how do you behave correctly? Before we clarify that, let's take a look at Japan as a business and innovation hub.

 

Catching Up in the Startup World: How Japan is Expanding its Innovative Power

Whether it's robotics, electronics, semiconductors, or automation, Japan is famously at the top of the global rankings in many industrial sectors. This is thanks to a combination of government support, a strong manufacturing infrastructure, and well-trained talent. Despite this, the country's startup ecosystem remained relatively small for a long time.

Japan wants to change this. In recent years, the Ministry of Economy has launched numerous support programs to promote both domestic and international startups. These include the J-Startup Program, which primarily supports technology-oriented startups with the potential to strengthen Japan as a global market leader. The Japan External Trade Organization (JETRO), in turn, helps international startups establish themselves in the Japanese market and build and expand partnerships. In addition, the German Chamber of Commerce and Industry in Japan (AHK Japan) acts as a central hub for German foreign trade promotion, especially supporting founding teams with export ambitions to Japan. Various accelerator programs also help aspiring startups that want to scale quickly and expand into international markets.

 

From Tokyo to Osaka: Regional Startup Scenes on the Rise

How the state is creating a vibrant startup culture can be observed in the capital, Tokyo. According to the global research organization Startup Genome, the estimated total value of Tokyo's startup ecosystem alone increased from $25 billion to $66 billion between 2020 and 2024—a massive 264 percent increase. Targeted investments by the city government in innovation hubs, international connectivity, and structural frameworks have fueled this boom.

At the same time, networks between VC firms, startups, the public sector, and established businesses are becoming denser, enabling new business models to scale quickly. Innovation ecosystems are also being expanded beyond Tokyo, for example, in Osaka, where the establishment of the Osaka Innovation Hub has created a home for startups. While a large portion of Japanese startups are founded in the fields of AI and FinTech, the topic of decarbonization is also becoming more important. For example, Yokohama, Japan's "Gateway to the World," has developed into a hotspot for GreenTech startups in recent years.

 

Business Etiquette for Japan

There are plenty of networking opportunities in Japan, which makes intercultural understanding all the more important. The Japanese business world is still heavily influenced by tradition, and values such as respect, politeness, and harmony are considered crucial, especially in the context of entrepreneurship and economic partnerships. In general, patience is golden in Japan, both when networking and negotiating. For example, if you talk about finances at the very first meeting, you might close off one or two possibilities. The same applies to punctuality, which is extremely highly valued in Japan. In the best case, you even arrive a few minutes early for appointments.

The list of customs goes on. We've summarized a few of the most important cultural techniques in a business context below.

 

The First Meeting: Bowing as Prevention

While greetings in Europe are considered a superficial formality, in Japan they are an important building block on the path to a partnership. Although expectations for foreign guests regarding greetings, including bowing, are not quite as high, you should not omit it out of respect. The implied bow doesn't have to be perfect—there are different angles depending on the social relationship anyway—but it should at least be recognizable. If the Japanese counterpart extends a hand for a handshake, you should, of course, reciprocate.

 

Digital Netiquette

Special politeness is also the order of the day when exchanging business emails in Japan, regardless of whether it's about a meeting or contract discussions. Cautious wording, the use of the subjunctive mood, and above all, many thank yous define digital communication. This etiquette is not strictly required of non-Japanese people—but if you want to develop long-term relationships, you should still consider it.

 

Business Cards: More than a Nice Gesture

What can you do wrong with business cards? A lot—because in Japan, their handover has ceremonial features. This is about more than just exchanging contact information. A business card should always be handed over while standing and with both hands. As the recipient, you should also take the time to examine the card thoroughly. In addition, the card should not simply be put in your pocket—in Japan, people always carry a business card holder with them anyway.

 

Hierarchies

Professional status plays a bigger role in business meetings in Japan than in Europe. For example, you should always address the executives first before approaching other employees—for instance, business cards are exchanged first with the highest-ranking person.

 

Saying "No"

Open rejection is frowned upon. Especially in negotiations or when making offers, you will rarely hear a "no," and that is out of politeness to the other person. A clear rejection would mean a loss of face for them. Instead, the answer is avoided, for example, with phrases like "that's difficult," or, more rarely, simply by silence.

 

Business Meals

At a business lunch or dinner, you should not pour drinks for yourself—your table neighbor will do that. A special custom also applies when eating soup: slurping noises are completely normal and will not offend anyone. The opposite is true for tipping, which is uncommon in Japan and is often seen as charity.

 

Physical Contact

In Japan, great importance is placed on personal space. Hugging, patting on the shoulder, or shaking hands is not common in everyday business life—even if the latter is sometimes offered out of politeness to Europeans.

 

Gifts

If you want to create an optimal atmosphere at a business meeting, bring a small gift—for example, sweets or fruit. The rule here is: there is no such thing as too elaborate packaging. This is because it is also seen as a sign of appreciation for the recipient. Gifts that can be shared in the company are also best.

 

Clothing

A casual startup look? Not a chance. In Japan, formal, conservative clothing is still common at business meetings—even in the warm season. Formal business attire for women and a suit for men are ideal, while colorful or flashy clothing could be perceived as disrespectful in some places.

 

Balancing Act Between Future and Tradition

Anyone traveling to Japan experiences not only a global technology hotspot but also a country with a tradition-rich business and networking culture. The strong government support for the tech sector and innovative startups, paired with entrepreneurial values and traditions, make Japan a unique destination for delegation trips. If you want to build successful partnerships here, you should not only know the local economic potential but also the subtle art of business interaction.

You can find out more about Japan as a hub of innovation after the de:hub delegation trip in September!

 

Sources: 

https://www.japanwelt.de/blog/japanische-geschaeftsetikette-regeln-und-empfehlungen
https://expateer.ch/etiquette-business-knigge-japan/
https://global-cultures.com/dos-and-donts-japan-business-etikette-in-japan/
https://oishya.com/de/journal/geheimnisse-der-japanischen-geschaets-etikette-geschaefts-meetings/

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