Interview #2.1 – Bridging East and West — Leadership Challenges and Opportunities for Japanese Companies in Europe
Table of Contents
Interviewee Introduction: Mr. Martin Schoder
With close to 30 years management experience in complex multinational organizations across four continents, including 13 years deep in Asia, Martin Schoder brings invaluable leadership lessons on cross-cultural management. As SVP Procurement and CFO, he has led his teams through digitalization, major supply chain, organization and process restructurings, and sustainability transformations while fostering global, diverse talent. His unique blend of strategic vision, operational expertise, and cultural fluency offers a masterclass in navigating multinational decision-making dynamics.
The Reality for Japanese Companies in Europe: Leadership and Strategic Challenges
Over decades, Martin Schoder built a career deeply interwined also with Japanese companies operating worldwide. He observed early on that many Japanese firms extending to Europe faced a common dilemma: their leadership models, optimized for consensus and harmony at home, often struggle to keep pace with West European regulatory complexities, customer expectations, and the rapid innovation cycles demanded in markets like Germany.
Martin’s personal career journey—from his first posting in rural Japan in Yamaguchi to senior strategic roles across Asia and Europe—shaped his understanding of this leadership paradox. Japanese companies typically send expat managers with strong technical knowledge but limited local decision authority. “These managers must constantly report to Japan and rarely have real power to immediately solve problems or seize opportunities,” Martin recounts. This micro-management, combined with gaps in local cultural and regulatory knowledge, constrains business growth.
“In Japan, decisions take time because of the elaborate consensus process,” Martin explains. “But in Europe, customers expect fast responses. The time mismatch leads to frustration, misunderstandings, and lost opportunities.”
The Importance of Hybrid Leaders Who Bridge Cultures
Martin advocates for recruiting or developing hybrid leaders who embody both Japanese and European business cultures. “I see my role as the bridge,” he says, drawing from his 13 years in Asia and experience navigating European markets. Such leaders understand Japanese internal communication, hierarchy, and risk aversion—and can translate those nuances for European colleagues and customers, clarifying priorities, accelerating decisions and foster cross-cultural collaboration.
He notes diverse functions where this bridge is crucial—from managing directors overseeing production and local operations, to senior procurement and supply chain executives balancing local sourcing, quality, cost, and compliance.
Real-World Examples: When Communication Breaks Down
One revealing episode Martin shares describes the challenge when local German teams could not get Japanese headquarters to understand urgent product modifications needed by European customers. “We struggled for a long time with intermediaries who diluted or distorted requests,” he recalls. “Eventually, I contacted the Japanese head office directly. This approach shocked some, but it forced us to realign priorities at the top, ensuring production and supply matched market needs.”
This anecdote illustrates the characteristic “gap” many Japanese subsidiaries face: excellent engineering and product quality but slow market responsiveness. Martin believes real growth demands both deep technical excellence and leaders empowered with local knowledge and authority.
Balancing Restructuring with Cultural Sensitivity
Another key challenge Martin tackled was restructuring a Japanese factory in Japan during difficult market conditions. He explains that such change required delicacy, aligning different business cultures and achieving global collaboration. “We did have to restructure and shut down unprofitable activities, but according consequent headcount adjustments are difficult in Japan, especially for non-Japanese ventures,” he says. “Instead, we enforced ‘soft restructuring’, such as not replacing retirees and not hiring newcomers and developing new global business opportunities with existing assets, and so rising productivity and profitability over time.” Martin’s leadership ensured the site remained profitable through this painful transition, exemplifying how operational discipline and cultural respect can coexist.
Developing and Retaining Talent for Japanese Subsidiaries
Martin notes rising interest among European professionals and talents, especially younger generations, in Japan and working for Japanese firms—drawn by brand prestige and the appeal of Japan’s culture. However, companies must improve employer branding, clarify career paths, and embrace more open, inclusive communication styles to attract and retain top talent. Martin’s experience leading global, diverse teams equips him to foster this environment, blending Japanese lifelong commitment culture with European flexibility and innovation.
Hybrid Leadership as the Bridge
Based on his extensive experience living and working in Japan, China, and Europe, Martin stresses the necessity for hybrid leaders who combine fluency in Japanese business culture with expertise in European markets.
“I have spent years understanding both the detailed decision-making and commercial business culture in Japan and the regulatory, customer, and marketplace realities in Europe,” he says. These leaders translate headquarters’ strategic priorities into actionable local plans, bridging cultural and operational gaps.
Martin also offers practical advice for Japanese companies aiming to build effective local management teams in Germany and across Europe: engage specialized recruiters or executive search consultants who deeply understand both Japanese business culture and the European recruitment landscape.
“HR teams within the company often face challenges in hiring management because of internal politics, existing relationship dynamics, or a limited perspective,” Martin explains. “Using professional external recruiters in unknown territories brings an impartial, third-party perspective that is critical for identifying and attracting the right talent.”
He emphasizes the value of choosing recruiters with expertise in both cultures and local hiring trends to help Japanese companies find candidates who will not only fit operational needs but also thrive in bridging two distinct business worlds.
“Successful localization of leadership requires sourcing candidates who can interpret Japanese management styles and effectively lead European teams, respecting local regulations and market demands. This is a subtle skill set best understood by recruiters familiar with the intricacies of both cultures.”
Such partnerships with specialized executive search firms empower Japanese companies to accelerate the building of hybrid leadership teams, improving decision-making agility and local market integration essential for sustainable success.
Conclusion: Shaping a New Model for Japan-Europe Business Success
Japanese companies coming to Europe must invest in leadership that can bridge cultural, operational, and strategic divides. Mr. Martin Schoder’s multifaceted career embodies this new paradigm: blending empathy, experience, and pragmatic leadership to unlock growth and sustainable success for Japanese firms in fast-evolving European markets.
A key element of this transformation is the strategic use of specialized recruiters or executive search consultants who possess deep knowledge of both Japanese business culture and the European local hiring landscape. By engaging such experts, companies gain an impartial, third-party perspective crucial for identifying and attracting the right talent to localize management teams effectively. This approach mitigates internal biases and politics that can impede hiring, ensuring leadership teams are truly capable of bridging cultures and driving performance.
Through empowered, localized leaders recruited with cultural insight and market acumen, Japanese subsidiaries can transcend historical barriers and thrive as dynamic, resilient, and profitable hubs within global value chains.
About YS Global Search (YSGS)
YS Global Search was founded in February 2024 in Duisburg, Germany. Based on our vision, mission and values, we provide the best talent acquisition experience to our clients and the best career consulting experience to our candidates. We specialize in headhunting and executive search for local management positions in Europe, especially Germany. We are not just a recruitment company that delivers a pool of candidates to our clients and a job to our candidates. We promise to be a business partner to our clients, enhancing and strengthening their organization through the introduction of experienced and professional talent. We also promise to be a lifelong career development partner to our candidates, supporting their growth and satisfaction throughout their career milestones.
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