The Effect of Cultural Norms on Group Decision-Making in Japanese Corporations

Abstract

This paper explores the impact of cultural norms, particularly collectivism and social harmony, on group decision-making practices in Japanese corporations. Focusing on consensus-building mechanisms such as nemawashi and ringi-sho, the study examines how these practices foster inclusivity, mitigate conflict, and promote long-term organizational stability. It also highlights the challenges posed by slow decision-making processes and the risk of groupthink, which can stifle innovation and agility in a fast-paced global market. While consensus-building leads to more widely supported and risk-averse decisions, the paper suggests that balancing these traditional practices with more agile decision-making models is essential for Japanese corporations to remain competitive. The findings provide valuable insights into how Japanese firms might integrate global business practices while preserving their cultural identity.