Lost in Translation? Swedish companies in Japan

Abstract

Japan is one of the biggest economies in the world, and its huge market gives companies a strong incentive to establish themselves within the country. This study was conducted to identify how Swedish companies have managed their establishment within Japan. The purpose was to study six Swedish companies which have subsidiaries in Japan, and the methods they used for establishing their company, including how the management of the subsidiary was conducted and an analysis of the difficulties the companies faced. A qualitative method was employed through interviews and questionnaires. The collected data was then analyzed by utilizing the Uppsala Model, Hofstede's Cultural Dimensions and the EPRG-model, amongst many others. Results indicate that the companies have used a wide variety of different establishment methods, and that they have faced problems due to cultural differences. The study also reveals that the companies had needed to adapt their managerial approach to Japan, although not to the extent expected from reviewing theories and earlier literature.