Monday, 8 July 2013

Incompatibility of seniority systems with disruptive innovations

The seniority system plays a significant role in Japanese culture. When you learn Japanese language in an advanced level, you would notice it in the uses of a different set of respectful expressions to elders than of general polite expressions to peers. From the seating positions at a dinner table to payment systems in companies it affects every aspect of Japanese society. It may seem to be social pecking order and unfortunately sometimes it actually is, but traditionally it should be more accommodating and accompanied by passing on of time-tested wisdom and leadership by examples as an elders responsibilities.

Japan is not the only country to retain such a prominent seniority system but Korea has an even stricter one. Once I acquainted with a Korean gentleman at a cosy bar in Tokyo and we started conversations very casually and friendly. But eventually it turned out that I was by far senior than him and he turned sober immediately with his face pale and began apologising for his rudeness. It was quite hard to calm him down and convince him I was not insulted at all.

The cultural system of emphasising on respect for elders is not necessarily bad especially in the culture of diligence and commitment for lifetime learning. However, the recent technological roller-coaster with disruptive innovations changed the entire landscape. Time-tested wisdom is now often obsolete and even obstructing before the advancements of technologies. Because in a seniority system it may be troublesome to promote a youth with greater knowledge and familiarity about latest technologies than elders who generally do not appreciate such new developments.

It is interesting that recently Koreans are doing better in high-tech industires than Japanese despite its sterner seniority system than of Japan. In my opinion, it works counter-wise. As having a sterner seniority system, Korean youths see more opportunities overseas and succeed in business in the global market for accelerating innovations. Japan is just comfortable enough to stay but prohibiting to innovate within for its youths.

Proud Japanese elders are not happy with their current odds against the rival country. They are openly suggesting that a stricter seniority system like Korea's would be required to restore Japan's once mighty high-tech industries. However I think it would not work and even if it works it would be because Japanese youths abandon their country over more accommodating countries - the result Japanese elders would not want.

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