Project: Cultural Rapport

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Project: Cultural Differences

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Project: Cultural Differences

Differing Business Practices

The case study shows that there is a difference in business culture between Japan and India. One of the most significant distinctions is the attitude towards the formalization of the procurement procedures. Business relationships are important in Japan as evidenced by when Nippon Tele Communication (NTC) selected Nippon Information System Processing (NISP) directly without an RFP. This is contrary to the RFP process that Infosys expected to go through. Infosys being an Indian company was very keen on having a very competitive bidding process while Japanese companies prefer more reliance on trust and relationship rather than competition. Hukkanen (2023) revealed that due to the significance of confidence and dependability in the selection of a supplier, Japan prefers to use relationship-based contracting over competitive bidding.

Another key difference is the negotiation style. From a transactional bargaining culture, Infosys prioritized cost efficiency and outcomes. However, NTC's approach indicated a preference for flexibility and adapting to new information, even after agreements were made. Infosys expected the project to freeze after signing the contract, but NTC refined system upgrades based on end-user input. This suggests a Japanese preference for continuous improvement and responsiveness, which clashed with Infosys' expectation of a fixed contract scope. Japan emphasizes iterative improvements and adaptation in commercial discussions due to its high uncertainty avoidance and long-term orientation, according to Ge (2023).

Cues Demonstrating Cultural Differences

One major cue indicating cultural differences is the lack of an RFP. Infosys was astonished that NTC picked NISP without a bid. Infosys expected a competitive, systematic decision, whereas Japan relies on trusted connections in business. Another cue is how NTC responded to cost negotiations. NTC approved Infosys' 20% price reduction, even though it was still more expensive than NISP. According to Mehra (2025), Japanese corporations favor dependability and relationships over cost-effectiveness, unlike Infosys, which anticipated pricing would be the main issue.  The third cue is how NTC expected continued modifications even after the contract was signed. Infosys expected a set of deliverables, while NTC insisted on flexibility, reflecting Japan's focus on customer satisfaction and ongoing adaptability. This expectation led to tensions in project execution.

Differing Communication Styles and Structure

Communication and structural differences between Infosys and NTC were evident in how meetings were conducted. Japanese organizations' hierarchical communication structure was crucial. Johnston and Miyamoto (2022) argue that top executives dominate approvals and negotiations in Japan's vertical organizational hierarchy. For example, Infosys' Sachin, who was relatively junior, was sent to lead discussions, whereas in Japan, seniority dictates authority. Mismatches in perceived significance may have eroded Infosys' reputation. Additionally, the reliance on translation for technical discussions created inefficiencies and potential misinterpretations (Lewicki et al., 2014).

Cues Demonstrating Cultural Differences

One major cue is Sachin's struggle with indirect communication. He misinterpreted Japanese indirectness and thought NTC agreed with his changes. Infosys expected approval or rejection, but Japan may see a "yes" as understanding. Japan's high-context communication style uses high-context communication style, where agreement may reflect acknowledgment rather than actual consent (Levitt, 2022).

Another cue is the reluctance to discuss critical issues openly. After revealing their discontent, NTC said Infosys failed to understand their demands. According to Lin and Lou (2024), Japan's high-context communication approach favors nuanced feedback over Infosys' straightforward interaction.

The third cue is Sachin declining to go out for drinks. In Japan, casual meetings develop professional bonds. While Sachin did not need to drink alcohol, attending could have fostered rapport, an essential part of Japanese business culture. Infosys prioritized work over relationships.

Best Practices for Easing Cultural Tension

Relationship Building Before Business

International negotiators should invest time in building relationships before discussing contracts. Japanese businesses value trust and long-term collaborations. Companies should focus on relationship-building through casual meetings and networking events rather than formal procurement processes (Koporcic & Ivanova-Gongne, 2020). By stressing connections, Infosys might have become a trusted partner instead of a vendor.

Cultural Training for Employees

Companies engaging in cross-cultural business should provide employees with cultural training (Dominique, 2020). Sachin misinterpreted NTC's assent as approval because Infosys was ignorant of Japanese communication techniques. Indirect communication, hierarchy, and negotiation training would assist professionals in overcoming cultural differences (Lewicki et al., 2014).

Flexibility in Negotiation and Project Execution

Flexibility is key when working in different cultural contexts. Sharma and Makhija (2024) found that adaptable business strategies and cultural intelligence improve cross-cultural negotiations by building understanding and lowering conflict. When NTC repeated revisions, Infosys assumed needs would be resolved after signing the contract, causing conflict. To ease such tensions, negotiators should anticipate evolving requirements and incorporate adaptability into agreements. Instead of resisting changes, Infosys could have negotiated phased deliverables to accommodate NTC's iterative approach (Brett, 2014).

Conclusion

Cultural differences in business practices, communication styles, and negotiation strategies can create challenges in international business. Companies may improve cross-cultural cooperation by concentrating on relationship-building, cultural training, and flexible negotiating. These measures would have helped Infosys eliminate NTC misalignments and promote teamwork.

References

Brett, J. M. (2014). Negotiating globally : how to negotiate deals, resolve disputes, and make decisions across cultural boundaries. Jossey-Bass.

Dominique, V. (2020). Business cultural training in a globalised economy. Training, Language and Culture, 4(1), 33–43. https://cyberleninka.ru/article/n/business-cultural-training-in-a-globalised-economy

Ge, J. (2023). The Influence of Uncertainty Avoidance on Cultures and Business Practices. Research and Commentary on Humanities and Arts, 2(2). https://ojs.scineer-pub.com/index.php/RCHA/article/view/4037/3799

Hukkanen, L. (2023). Building collaborative relationships by utilizing strategic supplier relationship management. Lutpub.lut.fi. https://lutpub.lut.fi/handle/10024/165364

Johnston, A., & Miyamoto, K. (2022). Independent Directors and Team Production in Japanese Corporate Governance. Asian Journal of Law and Society, 1–34. https://doi.org/10.1017/als.2022.22

Koporcic, N., & Ivanova-Gongne, M. (2020). The importance of Interactive Network Branding for business relationship development: insights from emerging markets. Journal of Business & Industrial Marketing, 35(1), 183–192. https://doi.org/10.1108/jbim-10-2018-0294

Levitt, S. (2022). Intercultural Competence in International Teamwork: Understanding High-and Low-context Communication Styles. CMAP), 2022(1), 1–13. https://doi.org/10.14456/cmap.2022.1

Lewicki, R. J., Barry, B., & Saunders, D. M. (2014). Negotiation: Readings, Exercises, and Cases:7th Revised : edition. Mcgraw Hill Higher Education.

Lin, H., & Lou, L. (2024). A Study on Cross-Cultural Business Communication Based on Hofstede’s Cultural Dimensions Theory. Open Journal of Social Sciences, 12(09), 352–368. https://doi.org/10.4236/jss.2024.129021

Mehra, N. (2025). Bridging Business Cultures: Japan’s Relationship-Driven Model vs. the West’s Transactional Approach. https://doi.org/10.2139/ssrn.5167932

Sharma, K., & Makhija, T. K. (2024). Bridging the Cultural Divides: The Transformative Power of Cultural Intelligence in Global Business Leadership and Negotiation. Journal of Global Research in Education and Social Science, 18(2), 15–24. https://doi.org/10.56557/JOGRESS/2024/v18i28647