The secret recipe of hidden champions in Japan: Innovation and Internationalization

Every good business has a responsibility to shareholders and to the bottom line. But every great business feels a duty to something bigger and more impactful than just their profit and loss.

While there has always been a strong sense of national pride in Japanese corporate culture, a strong combination of innovation and international thinking is taking a buzzing crop of SMEs to the next level right around the world.

Fuelled by the Japanese business attitude of Monozukuri, these firms are aligning their traditional work ethic and standards to a creative ingenuity which is growing markets, extending product lines and having a massive impact on people’s lives.

Whether that’s in fields like logistics, electronics, fabrics, or construction to name just a few, the small to medium sized enterprises are all working hard to answer the questions of tomorrow.

The niche businesses, often in the B2B sector, have found success in a volatile world of increasing diplomatic tensions, pandemic restrictions, supply issues and labor shortages by offering expertise in their specific market, while utilizing innovation and flexibility to adapt quickly and efficiently to crises and shifts.

“Tailoring our approach to customer needs while keeping in mind the quality approach means that we are constantly in a cycle of innovation. This is the very core of the Japanese spirit and Monozukuri.” - Yuichi Kitao, President, Kubota

One example is agri-tech firm Kubota who have been quietly changing the world with little fanfare. In addition to their well-known tractor and heavy equipment sales, they have been using cutting edge technology to fight hunger and support clean water programs for developing nations.

While they are also hopeful of solving farming staff shortage issues and boosting efficiency by ushering in a new age of fully automated farms run via remote monitors.

Kubota President Yuichi Kitao said: “We are very meticulous people with a high level of attention to detail and customer care. To ensure quality, we need to make improvements to achieve our goals. As we move to meet the needs of our customers and market in general, we develop new technologies and systems."