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Communication and Based on measures across a variety of dimensions, this
Decision Making across paper reports on the communications and decision-
making practices of Japanese firms operating in Japan
Cultures: Japanese and and the United States compared to American firms
American Comparisons operating in the United States. The findings document
substantial similarity among these firms. Contrasting
Richard Tanner Japanese firms in Japan with American firms in the U.S.,
Pascale the findings dispute some of the traditional characteriza-
tions of the two management systems. Many similarities
were found in the form and volume of communication
across the two cultures. Further, contrary to sterotypes,
managers of Japanese firms were not found to utilize a
consultative decision-making process more extensively
than American managers do. From a methodological
standpoint, the findings suggest the desirability of first
examining cross-cultural phenomena from the vantage
point of universalistic organizational theory, and, sub-
sequently, examining the mediating effects of par-
ticularistic factors such as culture.*
OVERVIEWAND PURPOSE
A number of studies, the majority descriptive in nature,
have characterized Japanese and American management
methods as different in a variety of ways. The Japanese are
reported to communicate more extensively with other man-
agers and to more extensively utilize a consultative
decision-making process. These depictions of differences
between the Japanese and American managerial systems
are generally explained on the basis of two kinds of argu-
ments. The first holds that the Japanese culture is different
from the American and that these cultural differences are
reflected in their communication and decision-making pro-
cess. The Japanese emphasis on interdependence and
harmony within work groups (see, for example, Doi, 1973
and Rohleen, 1976) leads to extensive consultation whereas
Americans, according to this argument, are more indi-
vidualistic and conscious of excessive authority and will
demarcate "zones of authority" within which they can op-
erate with relative independence (Burrage, 1972).
The second argument states that even while the Japanese
and American managerial systems serve the same overall
purpose of accommodating the organization to the envi-
ronment, societies can achieve similar objectives through
different but parallel institutions. West Germans use
codetermination in industrial relations; Americans use col-
lective bargaining. Both systems achieve the same result of
determining wages, employee benefits, and so forth. This
? 1978 by Cornell University. "functional equivalence" argument does not look to culture
0001-8392/78/2301-0091 $00.75 as an explanation of differences but rather points to the
functions which these differences serve. Thus, the
Japanese consultative decision-making system is explained
This research was supported by the Na-
tional Commission on Productivity. In a as serving the rational function of furthering peaceful rela-
complex four-year project such as this it tions among labor, management, and shareholders -a key
is impossible to credit each individual requirement for the success and legitimacy of Japanese
contributor. However, I wish to thank
Mary Ann Maguire, Assistant Professor, ma nageme nt.
Catholic University, who contributed im-
portantly to the design, conduct, and Juxtaposed to the cultural and functional equivalence argu-
analysis of this research. ments is the convergence hypothesis which states that in-
March 1978, volume 23 91/AdministrativeScience Quarterly
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dustrialization imposes a number of common forces on a
society including moves away from an agrarian base, a
technological ethos, secular values, and shifts to educated
manpower and management.
The purpose of this research on Japanese and American
management methods is to examine the extent to which
the "imperatives" of industrialization overshadow cultural or
functional differences and result in common solutions to
managerial communication and decision making.
Relevant Research
This study constitutes an intersection of two research tradi-
tions, one providing empirical descriptions of managerial
communications and decision making generally, and the
second contrasting these processes as a function of cul-
ture. A number of studies have documented activities and
communications patterns of managers. Carlson's (1951)
classic study was based upon nine senior Scandinavian
managers recording the details of each activity they en-
gaged in. Subsequent researchers have empirically docu-
mented the volume, hierarchical direction, and purposes of
managerial communication (for example, see Burns, 1954;
Landsberger, 1961; Kelly, 1964; Horne and Lupton, 1965;
and Stinchcombe, 1974).
Additional studies have investigated communications and
decision making among managers and their impact on the
quality of decision making and implementation (see, for
example, Vroom and Yetten, 1973). Lawrence and Lorsch
(1969) found that effective upward communications and in-
fluence from lower and middle levels of management in-
creased the quality of decision making and of implementa-
tion. Vroom (1970), in his studies of both autocratic and
participative decisions, found that allocating problem solving
to groups required a greater investment of time but pro-
duced higher acceptance of decisions and increased the
probabilitythat the decision would be executed efficiently.
Cross-cultural research efforts have contrasted managers in
x Japan with their counterparts in other cultures. However, a
Isi uzrakstit par so petijumu x close look at the methodology of these studies as they per-
rezultatiem un noradit, ka x tai n to the Japa nese ma nagerial process indicates that they
are not based upon empirical measures of Japanese mana-
tos kritizeja sa raksta autors, jo: x gerial practices but rather upon (1) researcher impressions,
x
(2) attitudinal measures, and (3) decision-making experi-
x ments in laboratory settings. For example, Abegglen (1958:
x 83) reporting on his observations in Japanese firms noted
x striking differences between the Japanese and American
x approaches to decision making. Abegglen reported more ex-
tensive lateral and hierarchical communication in Japanese
x companies and more extensive reliance on consultative de-
kopsavilkums, kads x cision making. Ten years later, Yoshino (1968), again basing
tad ir sis sagrozits x his reports on clinical observation, largely echoed
priesstats, skatit x Abegglen's characterizations. Yoshino noted the high de-
nakosaja lapa (A) x gree of immersion of Japanese managers in the communi-
cations process, their ability to communicate quickly and
x easily up and down the hierarchy, and their emphasis on
x consultative decision making. A subsequent study by
x Johnson and Ouchi (1974), based upon open-ended inter-
x views with managers of Japanese companies in the United
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Communication and Decision Making
Propositions
A composite picture drawn from existing descriptions of
Japanese management tends to portray management as
different from and/or superior to the prevailing approach
toward managerial communications and decision making as
practiced by most American companies in the U nited
States. It is useful to summarize these characterizations as
four propositions: -
(1) Volume: The volume of communications among manag-
I ers of Japanese companies is greater than among manag-
I ers of American companies.
a I
I
(2) Direction: Managers of Japanese companies have a
greater proportion of communication initiated on them by
subordinates than do managers of American firms.
I
I (3) Consultation: Managers at Japanese firms more fre-
I quently employ a consultative approach in decision making.
I (4) Quality: Owing to the consultative decision-making pro-
cess, there will be greater acceptance by managers of deci-
I sions in Japanese firms and a greater probability of deci-
I sions being implemented effectively.
I
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Examination of these propositions permits two kinds of ob-
servations. First, we see the broad levels of generalization
which they encompass. A number of questions can be
raised. What are the limits of these characterizations? Do
they apply to the foreign subsidiaries of Japanese com-
panies or only to operations in Japan? Are the characteriza-
tions true of all firms which operate in Japan, regardless of
national ownership, or only of Japanese-owned companies?
As these questions suggest, the propositions may require
qualification. Second, from the vantage point of the cultural,
functional equivalence arguments, and/or convergence
hypothesis, each of the propositions assumes differences
between Japanese and American methods. While neither
the propositions nor the design of this research can indicate
whether the cultural argument or the functional equivalence
argument is responsible for these differences, it is clear
that differences are assumed and that the convergence
hypothesis (predicting similarity in managerial processes)
represents the null finding.
This research thus has two objectives. First, to examine the
validity of these propositions as a function of ownership
and location. Second, to shed light on the larger question of
whether highly industrialized nations differ in their manage-
rial processes (whether for reasons of culture or functional
equivalence) or whether they tend to display predominant
similarities in their managerial practices.
Major Constructs
In an effort to test the four propositions -volume, direc-
tion, consultation, and quality- four basic constructs will be
utilized: (a) managerial communication, (b) decision style, (c)
the relation of decision style to perceptions concerning the
quality of decisions, and (d) perceptions concerning the
quality of implementation. Managers of all cultures are con-
fronted with the task of acquiring information from the en-
vironment, transmitting and analyzing it through a com-
Manageria
Communication
Figure 1. Schematic relationship of constructs. Note: Items in ovals represent majorconstructs in the research;
items in rectangles represent minor constructs and are included in the diagram for completeness.
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Communication and Decision Making
LOCATION
United States Japan
1 ~~~~~~~~3
American American parent firm American
(U(U.S.)
.S.)subsidiary
~~~~~~~(Japan)
OWNERSHIP
2 4
Figure 3. Composition of sample. Note: The 261 total respondents refers to managerial respondents only. This
pool included managers from senior management to the supervisory level; over 75 percent of respondents were
middle-level managers.
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Thirteen Japanese firms with major operating units in the
United States were matched on an industry-by-industry
basis with 14 American companies. The pairing of operating
units within industries was performed to approximate
equivalence between the sample populations. The selection
of operating units was based on a number of criteria which
were designed to achieve comparability across a number of
dimensions.
The matching process, based upon the following procedure,
began with identifying every Japanese firm with major
operating units in the United States. While there are hun-
dreds of Japanese firms which export goods to the United
States and have regional sales organizations here, only 30
to 40 are involved in major production or service activities
which employ 30 or more Japanese and/or American man-
agers and workers.
The Japanese firms meeting these criteria fall within 10
basic industries. In some instances, of course, there are a
number of Japanese firms in the same industry -particu-
larly in automotive distribution and banking. Our selection
process began by selecting one firm from each industry.
Where more than one firm existed, we selected the
Japanese firm which had been in business the longest in
the United States and, conveniently, these firms had the
most extensive U.S. operations. In several cases, alternate
Japanese firms in a given industry were so closely compar-
able that two were contacted. A total of 14 Japanese firms,
representing 10 different industries, were asked to partici-
pate in the study; all but one accepted. The industries rep-
resented were retailing, banking, food processing, airlines,
fasteners, bearings, motorcycle assembly, light aircraft as-
sembly, television assembly, and automotive distribution. As
the list suggests, the sample includes firms (1) operating in
manufacturing, distribution, and services businesses, (2)
utilizing batch and continuous process production methods,
(3) varying in capital and labor intensivity, and (4) with both
high and low technological concentrations.
Analysis was made of each of the Japanese firms selected.
Details concerning the product and market segment of each
were compiled. U.S. industry associations were then con-
sulted to identify an American firm in each of the 10 indus-
tries whose product and market segment was most closely
comparable to their Japanese counterpart. It was found that
Japanese firms with the skills and resources necessary to
establish subsidiaries in the U~nitedStates tended to be high
performers within their industries in Japan; the American
firms chosen tended to be their strongest U.S. competitors.
We approached the chosen American company in each in-
dustry to determine their willingness to participate in the
study, and whether they had an operating unit in the U nited
States which was comparable to the Japanese operation
with which they were paired. Of the 15 American firms
asked to participate in this research, only one declined. The
criteria for identifying the closest match, in the order of
importance, were (1) plant facilities (that is, technology, pro-
duction methods, and capacity), (2) range and quality of
product produced, (3) size and composition of work force
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Communication and Decision Making
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Our response to the second and third challenges is that
these are precisely the issues which our design enables us
to examine empirically. If Japanese firms in the U.S. do
indeed differentially recruit a special breed of American em-
ployees, this would constitute an interesting aspect of the
overall differentiation between the Japanese firms and their
American counterparts. Since one of the Japanese firms in
the study acquired plant and personnel in entirety from an
American company, we were able to test if the profile of
these employees and their managerial processes differed
from those of Japanese subsidiaries which started from
scratch and engaged in the recruitment process. In the
same vein, our empirical data shed light on the question of
whether the Japanese operating units sampled in the
United States are "truly" or "sufficiently" Japanese. Un-
doubtedly the Japanese firms in the U.S. are likely to be a
hybrid of both cultures. All Japanese firms in the U.S. hired
American managers for line positions (which encompassed
all echelons from senior management to foremen and
supervisory personnel) and all had an American work force.
With the single exception of the banking industry, the pro-
portion of managers and workers of Japanese extraction
(that is, second- or third-generation Japanese-Americans)
was no higher in the Japanese-manbged companies than in
their matched American counterparts. The interesting re-
search question, and one which the empirical data pre-
sented here will address, is not whether the firms are
"pure" but to what extent they are different (regardless of
ethnic composition) along the dimensions reported in this
paper.
A second interesting research question stems from the re-
verse side of the above argument. This question centers
upon whether the Japanese hybrids, whatever their com-
position, are different enough, that is, is the "Japanese ef-
fect" a sufficiently strong "treatment" to cause Japanese
subsidiaries to behave differently? This question is antici-
pated directly in the research design. Since the same in-
struments were administered to the Japanese subsidiaries
as to their parent companies our findings will enable us to
determine the extent to which the subsidiaries behave in a
Japanese fashion. All the Japanese firms studied in the
United States were headed by a Japanese national and all
had two or three Japanese senior managers in key staff
positions (usually accounting, planning, and industrial en-
gineering). While the mean number of Japanese nationals
was 23 percent of the total number of managers in the
sample of firms (giving credence to the contention that the
Japanese subsidiaries were essentially "American" com-
panies) such an argument assumes that it is the proportion
of foreign managers that gives a subsidiary its "foreign
character." Others may contend that a subsidiary's charac-
ter derives from the parent company's procedures, control
system, planning process, and so forth. In essence this
argument asserts, "IBM France is still very American and
very IBM regardless of whether its entire management
team is comprised of Frenchmen." Here again our data may
shed light on an interesting issue. The sample was con-
structed with 4 of the 13 Japanese operating units in the
United States having 60 to 90 percent of their managers
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Communication and Decision Making
DATA COLLECTION
The study was conducted in two phases. Phase I began in
the summer of 1973 and was completed by the summer of
1974. In this phase, participation of companies was elicited
and exploratory unstructured interviews were conducted
with a sample of managers and nonmanagers. The objec-
tives of Phase I were to (1) establish clinical impressions of
the management process of Japanese- and American-
managed firms, (2) identify the major research issues,
and (3) develop a data collection methodology. In all, 142
open-ended interviews were conducted.
Phase 11involved the development and administration of
the empirical research. Research issues were identified and
data gathering instruments were developed and pilot tested.
These were administered to managers and workers in 43
Japanese and American sites, in both Japan and the United
States over the 12-month period beginning in February
1975. Seven instruments were used to collect the data: two
interviews, one for managers and one for first-line super-
visors; two questionnaires, one for managers and one for
nonmanage-rs; two non-participant observations of ma nag-
ers and non-managers; and, finally, a personnel data survey
concerning the organization as a whole.
This article reports on data obtained from the management
interview and questionnaire.2 Since the purpose of this
study was to analyze differences within and across cultures,
common sets of instruments were utilized in both Japan
and the United States. The questionnaire was translated
into Japanese, translated back into English, and subjected to
2
a panel of bilingual Japanologists to ensure accuracy. The
Findings pertaining to supervisory management interview was conducted in English both in
methods and employee relations are re-
ported in Pascale and Magu ire (1978c) Japan and the United States. In only 10 percent of the
and Pascale (1978a), respectively. interviews in Japan was a translatorneeded to assist the
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English speaking interviewers. At all but two research sites,
the size of the operating units permitted all senior and
middle-level managers to be interviewed. Where size dic-
tated a sampling of managerial respondents, this was done
largely on the basis of matching job title and function as
closely as possible between the Japanese and American
companies. A total of 261 managerial interviews were
conducted.
Measures
As noted earlier, four major constructs were employed per-
taining to (1) the managerial communications process, (2)
style of decision making, (3) the outputs of that decision
process as manifested by the quality of decisions, and (4)
the quality of implementation. The variables and measures
utilized to translate these constructs into a useful research
tool will be discussed in order.
Managerial communications process. The primary forms
of organizational communications are of written and oral
character. Written communication includes formal typewrit-
ten memoranda and letters, and informal handwritten
notes. Similarly, oral communication takes a variety of
forms, occurring primarilyby telephone and through face-
to-face contact.
Appendix 11presents the communications measures that
were utilized in this study. The measures are classified on
the basis of communications volume, direction, and pur-
pose. It should be noted that "communications purpose" is
used here in a limited sense. A nine-item question in the
managerial questionnaire, scaled from 1 (always) to 5
(never), was designed to assess the respondent's use of
written communication for a variety of purposes such as
"requesting days off," "presenting solutions to problems,"
and so forth.
Measures of volume and hierarchical direction of communi-
cation relied on a detailed audit of the different kinds of
communication which took place in the organizations
studied. The methodology employed drew upon the re-
search methods developed by Burns (1954), Kelly (1964),
and Stinchcombe (1974). Managerial respondents were
asked to report the number of incoming and outgoing
phone calls, and face-to-face interactions each day, the ex-
tent to which these contacts were initiated by self or
others, the percent of these various types of contracts with
superiors, peers, subordinates, and the percentage of time
in a typical working day that was spent working alone.
Managers' secretaries were consulted to verify the accuracy
of these data. In addition, each respondent reported on the
number of formal and informal meetings attended involving
three or more persons, and the average number of people
attending those meetings. Respondents also reported on
the number of formal memos and letters, and informal
notes written each week. As a surrogate measure of the
volume of written communication, respondents noted the
thickness (in inches) of their previous year's outgoing corre-
spondence file.
In the interest of enhancing reliability,there was consider-
able overlap among measures. For example, the objective
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Communication-and Decision Making
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Decides Alone
L H
(2) (1)
[0] [32] Gets
Facts
(3) (2) H
[34] [47]
Decides Alone
L H
(5) (4) L
(6) (5) H
[23] [48]
L-Low consult
H-High consult
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Communication and Decision Making
FINDINGS
A score for each of the nine summary variables was com-
puted for each of the 43 sites in the sample. Table 1 pre-
sents a summarization of these scores arrayed by location
and ownership. For the sake of completeness, the scores
for the six American firms in Japan are included. However,
Table 1
Summary Statistics for the Nine Indices of Communications, Style of Decision Making, and Output Quality
In U.S. In Japan
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given the smallness of the sample size in this cell, these
scores should be viewed as highly tentative and will not be
treated in the discussion that follows.
Several overall impressions can be drawn from Table 1. We
find basic similarity in the volume of telephone calls in col-
umns (1), (2) and (4). In contrast, managers in Japanese
firms in Japan engage in over 30 percent more face-to-face
contacts each day than managers in either Japanese or
American firms in the U.S. do. There is also more lower-
to-higher and lateral face-to-face communication among
managers at Japanese firms in Japan than among their
counterparts in the United States. Finally, Japanese firms in
Japan score themselves somewhat higher on decision qual-
ity and substantially higher on implementation quality.
An analysis of variance using firm scores as the unit of an
analysis was run for each of the nine summary indicators.
T-tests were performed in those instances where signifi-
cant ownership, location, or ownership/location interaction
effects were identified. Two-tailed tests of significance
were utilized since the point of inquiry taken was one of
questioning the four propositions stated earlier by seeking
to determine, on an empirical basis, the actual direction that
those relationships would take. These findings are sum-
marized in Table 2.
As can be seen, there are no significant differences in any
of the summary variables between Japanese subsidiaries in
the U.S. and their American counterparts.
More interestingly, there are relatively few significant dif-
ferences among these variables between Japanese firms in
Japan and American companies in the U.S. Of the nine
variables, only three revealed significant effects.
Recalling the four propositions to be tested, it is of interest
to review our results. Proposition 1, higher volume of com-
Table2
Summary of Findings for Operating Units, by Location and Ownership
Decision-style construct
Decision-style (score) .174 .999 .151
Decision-quality construct
Perceived quality of decisions .999 .131 .093 - -
Implementation-quality construct
Perceived quality of implementation .057 .011 .149 3.1 (p < .01) 5.0 5.0 (p < .05) 3.5 no significance
Two-tailedtest of significance. The notation "-" signifies that not-testswere performed since theANOVA revealed no significant locationlownership effects.
The terminology "no significance" appears for those variables where the ANOVA confirmed significance location/ownership effects but subsequent t-tests
found no significant differences in the cells as indicated.
**
Indicates extentto which written commu nicationsare used for relatively routine matters such as reminding a colleague of a previous commitment. Scaled on the
basis of frequency of use from 1 (often) to 5 (never).
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Communication and Decision Making
CU1 Ee 0E
&E 4-'E cn 7D (.
.C0 0
Z
) xo (D =
F-o H W. WX 0 (D (D
Managerialcommunicationsconstruct
Thickness of correspondence file
Total telephone calls .14
Number of face-to-face interactions .08 .03
Purposes of written communication (score) -.1 1 -.07 -.12
Extent of lower-to-higher communications .07 .13 *5 -.19
Extent of lateral communications -.09 -.06 *33e .04 .620
Decision-style construct
Decision-style score -.18 .06 .11 .11 .19 .20
Decision-quality construct
Perceiveddecisionquality .08 -.04 .50 .05 .19 -.04 .14
Implementation-quality construct
Perceived quality of implementation .23 .07 .32 -.07 .36g .17 .15 .600
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higher Japanese scores on perceived quality of decision im-
plementation. The Japanese work setting encourages face-
to-face communication in a variety of ways. First of all, the
Japanese written language does not lend itself to mechan-
ical word processing. Since most written communication
must be rendered by hand (rather than typed), managers
find it more efficient to talk out problems rather than handle
them on paper. Secondly, the Japanese work setting is
crowded and open with numerous levels of hierarchy lo-
cated in the same open work space. Face-to-face communi-
cation is the dominant medium of exchange and problem
solving in these circumstances. We see here the ways in
which particularisticaspects of the work setting have signif-
icant impact on the frequency and use of face-to-face in-
teraction. Given the interrelationship between face-to-face
communication and implementation quality noted above, it
is not surprising that the Japanese firms in Japan, whose
work setting encourages face-to-face communication, also
score highly on perceived quality of decision
implementation.
DISCUSSION
The conceptual point of inquiry of this paper has been the
extent to which two highly industrialized nations, Japan and
the United States, will evolve similar management pro-
cesses or retain differences in approaches owing to the
forces of culture or functional equivalence. Our findings can
no doubt be marshalled to support both sides of the argu-
ment. However, when we consider the propositions ad-
vanced at the onset of this paper, assertions of wide-scale
differences based on cultural factors (and regardless of loca-
tion or ownership) appear unjustified. While there are dif-
ferences, the preponderance of evidence suggests wide
areas of commonality between Japanese and American
communications and decision-making practices.
One challenge that might properly be raised at this point is
whether the empirical measures utilized in the study tap key
differences between Japanese and American firms. Our
Limitations of the studymeasures focus heavily on the quantifiable aspects of
communication and decision making. In doing so, there is a
real risk of missing qualitatively important features of sig-
nificance. Culture is sometimes referred to as a system of
shared meanings which need not be communicated ex-
plicitly but nevertheless create the context of meaning for
social interactions.4 The methodology used in this study fo-
cuses on the volume, and to a limited extent the content,
examples - p. 103 of communication, and the perception of decision and im-
plementation quality among managers. Such measures are
insensitive to implicit meanings which are often created by
the cultural context; this is a real limitation. However, it
should be noted that the dimensions selected for empirical
measurement (such as volume and direction of communica-
tions and extensiveness of consultative decision making)
were not arbitrarychoices but often cited dimensions along
which the Japanese and American systems are said to dif-
4
of the non-quantifiable
fer. Thus while our measures did not exhaust all possible
For a discussion
findings of this study, see Pascale differences between the two management systems, they
(1 978a). did attempt to move the frontiers of understanding forward
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Communication and Decision Making
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Furthermore, Japanese subsidiaries were found to differ
from their parent companies in the use of (1) face-to-face
communication (p < .05), (2) written communication
(p < .01), (3) lower-to-higher communication (p < .05),
and (4) perceived decision quality (p < .05). In each case
these significant differences were in the direction of the
Japanese subsidiary being more like American companies.
Two alternate explanations for the "Americanization" of
these subsidiaries might be advanced. First, that Japanese
firms in the U.S. adapt exclusively to U.S. managerial prac-
tices. Alternately, given that few major differences in the
managerial process were found, it is not surprising that a
Japanese subsidiary with a predominantly American man-
agement team and work force would erase any residual
Japanese characteristics.
A test of this alternate possibility was conducted by examin-
ing whether the proportion of Japanese nationals present in
a Japanese subsidiary in the United States affected its ex-
tent of Americanization. Table 4 presents a breakdown of
company scores in which those Japanese subsidiaries
whose proportion of Japanese nationals exceeded 60 per-
cent of the total managerial force are compared to the
Japanese subsidiaries with 60 percent or less Japanese na-
tionals. The mean scores for each subset of firms are
shown. Overall these data indicate that the mean of all
operating units with a high proportion of Japanese nationals
falls within one standard deviation of the total sample of
Japanese firms in the United States.
Two principal differences of the "high-percent Japanese"
firms were in their lesser reliance on written communica-
tion and face-to-face interactions initiated on peers. The
most plausible reason for these differences appears to stem
from the communication difficulties in companies with pre-
dominantly Japanese and minority American staffs. These
firms used written communication less often for routine
matters, thereby significantly lowering the overall use of
written communication. In addition, interviewer impressions
indicated that those firms where the Americans were in the
minority tended to splinter along nationality lines, possibly
inhibiting interaction between Japanese and American
managerial peers. This inhibition is believed to account for
the comparatively low scores of these firms on the lateral
communication items. In summary, these findings do not
support the contention that it is the proportion of Japanese
managers present (in a Japanese company in the U.S.) that
drives the process of adaptation and Americanization.
One final challenge noted earlier concerns whether the
Japanese subsidiaries in the U.S. attracted a special breed
of American employee. One of the Japanese subsidiaries in
the study had been purchased outright from an American
company and thus inherited its American managers and
work force intact. There were, however, no significant dif-
ferences between the managerial responses of this operat-
ing unit and those of the other Japanese subsidiaries in the
sample. These findings fail to support the selective recruit-
ment argument.
108/ASQ
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Communication and Decision Making
CONCLUSION
Several propositions characterizing the practices of major
Japanese enterprises appear to overstate the contrast be-
tween Japanese and American managerial processes. Our
contingent approach, based on data by location and own-
ership, reveals that important qualifications need to be
made in generalizing about managerial characteristics both
within and across cultures. In a broader context, these find-
ings point out the risks of approaching cross-cultural
phenomena with the presumption that culture or functional
equivalence are the dominant explanatory variables. The
findings suggest that these mechanisms may need to be
applied in a narrower and more parsimonious fashion.
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APPENDIX I: Summary Statistics of Selected Structural Factors
Japanese and American Firms in the United States
Structural Factors American firms in the U.S. Japanese firms in the U.S.
For operating units studied (N=42)
Total number of employees
mean 1159 197
mode 450 250
range 28-4500 55-700
Number of levels in organization
mean 6 6
mode 6 4
range 4-9 4-10
Number of functional departments
mean 6 6
mode 7 7
range 3-11 3-14
Formalization score A-1
mean 4 3
mode 5 3
range 3-5 1-5
Age of operating unit
mean 19 8
mode 8 4
range 3-35 years 2-20 years
For parent company (N=42)
Years in operation
mea n 67 105
mode 37 40
range 28-170 years 26-340 years
Total number of employees, world-wide
mea n 47,890 33,700
mode 50,000 15,000
range 1000-230,000 1500-250,000
Purpose: Questionnaire items asking the respondent to Interview audit of the percent of face-to-face
indicate the extent to which written interactions self-initiated and the percent of all
communication is used fora variety of purposes interactions with 1) superiors, 2) peers, and 3)
ranging from routine to non-routine activities. subordinates.
A-I
The formalization score was based on
five written indicators of formalization,
with one point awarded for each: (1)
union contract, (2) procedures manuals,
(3) production schedule, (4) organization
chart, and (5) job descriptions.
1 1 OIASQ
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