Japanese business schools: the future of business education?

Why are Japanese business schools not as successful as one might expect?

Considering Japanese business, one immediately thinks of the likes of consumer electronics manufacturers Toshiba and Nintendo or of the car manufacturers Nissan and Honda. These Japanese blue chip firms are internationally immensely successful. They rank amongst the global business elite and their innovative products grace the homes of millions of people around the world.

It comes as a surprise then that the Land of the Rising Sun does not seem to fare well in terms of business education. The QS Global Top Business Schools 2009 featured only three Japanese business schools amongst the 200 schools that constitute the MBA elite in Asia.

Business education à la Japonaise

Traditionally, business training in Japan was provided by large corporations in-house. Upon joining a company, freshmen would first receive comprehensive induction sessions that covered all business functions.

They would then start working in a certain department and every few years be rotated to other departments. Eventually they had acquired knowledge of all the different business functions. This system produced well-rounded functional generalists and hence there was no need for MBAs.

Whilst some Japanese corporations continue to operate this in-house training model, others now outsource their business training to universities and business schools. Japanese corporate employees now increasingly study business at the 78 graduate business schools that operate MBA programs in Japan.

The favourite domestic choices of Japanese MBA students are the graduate schools of well-known universities. Most MBA programs at these schools are taught in Japanese only but they are not exclusive to Japanese students. Anyone who is fluent in the language and also fulfils the other entrance criteria may apply. In fact, an increasingly large number of students from Asia, especially from China, Korea, Taiwan and Southeast Asia, join these programs.

Top choices for international students

What seems largely unknown is the fact that there are an increasing number of MBA courses in Japan that are taught entirely in English. These include programs at Waseda Business School (WBS), part of Waseda University, and at the Graduate School of International Corporate Strategy (ICS) of Hitosubashi University.

Masakazu Sugiura, Professor at WBS and Project Director of the Waseda-NTU Double MBA Program, tells of what he calls a mental block with regards to English-language MBAs in Japan that prospective international students and recruiters seem to have.

His main message is: “There are top-class MBAs taught in English in Japan and anyone with an interest in Japanese business or in Asian business should seriously consider them!”

A new breed of Japanese business schools focuses on the Asia Pacific region. Amongst the pioneers are Ritsumeikan Asia Pacific University (APU) located in Beppu City on Japan’s Kyushu Island and the International University of Japan (IUJ) in Niigata Prefecture at the Sea of Japan.

Both Kyushu and Niigata are Japan’s gateways to Asia and hence the campus locations were a natural choice.

Dr. Yoshitaka Yamazaki, Associate Dean and Professor of Organizational Behaviour at the Graduate School of Business, IUJ tells us that the MBA environment in Japan offers unique opportunities to learn about Japanese perspectives and perceptions coming from Japanese professors and students both of whom are dispatched from the country’s blue chip corporations.

A hot trend in Japanese MBA education are part-time, weekend and online programs offered in English by foreign business schools that have set up a campus in Tokyo. These include Temple University Japan (TUJ), Anaheim University Akio Morita School of Business (both have their main campus in the US) and Canada’s McGill MBA Japan.

These schools initially targeted a niche market in form of the international community in Japan and especially executive employees of the many foreign corporations that have set up office in Tokyo. However, they are now ranking amongst the top MBAs in Japan according to Nikkei Business Publications.

Is Japan a viable future choice?

Japan could be an attractive option whilst the Japanese currency is strong against other currencies. In the past, MBA graduates entered multi-national companies as well as the diplomatic service based in Japan. Although it is not easy, there are various opportunities that are only available to international students, some of which come with a very high salary.

If Japan's economy is a disaster-zone at the moment, why is Japan still an excellent choice? Sugiura knows the answer: “Before the financial crisis studying business meant to study in the US without any question.

"However, the economic centre of gravity is now shifting to Asia and Japan has traditionally been and still is one of the business leaders in the region. Hence, it makes sense that business students too, go where the future of business lies.”

All in all, the MBA scene in Japan, like elsewhere in Asia, is thriving and the country is well prepared to be “discovered” by international MBA applicants and recruiters alike.