{"id":6578,"date":"2022-01-10T19:16:12","date_gmt":"2022-01-10T18:16:12","guid":{"rendered":"https:\/\/career-management.de\/en\/?p=2597"},"modified":"2024-03-06T10:08:36","modified_gmt":"2024-03-06T09:08:36","slug":"roles-of-japanese-startups","status":"publish","type":"post","link":"https:\/\/career-management.de\/en\/blog\/roles-of-japanese-startups\/","title":{"rendered":"What roles do Japanese start-up companies in Germany have?"},"content":{"rendered":"

There are roughly 2000 active Japanese companies in Germany, which mainly represent their HQ functions in the European market, and whose presence has gained more significance in the local market over the years. Alongside old Japanese companies, the number of small Japanese companies in Germany is increasing. Many start-up subsidiaries have also opened in recent years and their function differs from the well-established companies.<\/p>\n

Each Japanese company has a different function and organizational structure depending on the size, industry, and especially the age of the company. As shown below, subsidiaries\u2019 roles and their importance are inherently connected with the degree of their development. In general, the younger the subsidiary is, the more it relies on the HQ\u2019s decisions.<\/p>\n

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Reference: Strategic Development of the Multinational Subsidiary through Subsidiary Initiative-taking, Delany 2000<\/figcaption><\/figure>\n

Newly-established Japanese subsidiaries oftentimes have immature organizational structures in the local market, low sales, a small number of employees, and poor location. Local production or modification is, in many cases, still unavailable. Because of those challenges, employees are able to use their creativity and cultivate an entrepreneurial mindset in order to develop their business. Both expatriates and local employees cooperate like a family and work hard to expand the business.<\/p>\n\n\n\n\n\n\n
<\/td>\nSales<\/td>\nMarketing<\/td>\nProduction<\/td>\n<\/tr>\n
Establishment<\/td>\n+<\/td>\n0<\/td>\n0<\/td>\n<\/tr>\n
Expanding<\/td>\n++<\/td>\n+<\/td>\n0<\/td>\n<\/tr>\n
Strategic pivot\/apex<\/td>\n++<\/td>\n++<\/td>\n++<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Functions of Japanese start-up companies<\/h2>\n

When a Japanese company starts its operation in the German market, it is regarded as a bridgehead that doesn\u2019t have a firm position and company structure. In the HR field, it is called \u201cVassal\u201d which means it doesn\u2019t have a high decision-making autonomy and tends to rely on the HQ\u2019s decisions.<\/p>\n

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Reference: AUTONOMY AND PROCEDURAL JUSTICE, Taggart 1999<\/figcaption><\/figure>\n

In this phase, the subsidiary focuses on making profits (at least being in the black) and creating a stable structure. In the beginning, the subsidiary is managed by Japanese expatriates but gradually the local autonomy is shifted to the local staff. Below are the characteristics of subsidiaries in the early phases of their establishment.<\/p>\n

Characteristics of new subsidiaries:<\/u><\/p>\n