The land of the Sakura, or cherry blossoms, Japan has always caught the world’s eye for its natural beauty. But the land of the rising sun is also renowned for being the home of some of the world’s oldest companies. Some of the oldest Japanese companies date back to the 11th century.
So, what is it that helped these companies weather natural and economic changes? Some might say it is preserving tradition and achieving a certain level of mastery that translates to workers reaching middle age by the time they can be called experts. From custom bows to artistic knives, Japanese companies set a high standard in their pursuit of perfection. In keeping with modern times, Japan is also working towards achieving zero emissions by 2050.
The world’s oldest companies – Japan tops the list
In 2008, a Bank of Korea report found that of 5,586 companies older than 200 years in 41 countries, 56% of them were in Japan. In 2019, there were over 33,000 businesses in Japan over a century old, according to research firm Teikoku Data Bank.
Some Japanese companies have been in operation as far back as 578 CE. Construction company Kongō Gumi was opened in 578 CE and has been in business for over 1000 years. It is a family-owned business that slowly built up its reputation and fortune by constructing Buddhist temples and other famous buildings. Since 2006, it has been operating as a subsidiary of a Japanese construction conglomerate.
The second oldest company located in Austria is older by about 200 years to its predecessor. In the restaurant business, St Peter Stiftskulinarium was opened in 803.
The most common industry to survive the times is banking. Out of all the global companies in the list, 36 countries had banking as their oldest institution. The next on the list of old global companies is the alcohol industry. Postal services were also popular with 16 countries listed.
Japanese companies and their lessons in creating a sustainable legacy
What is it about Japan that they produce such long-lasting things? Be it a business or a knife, the Japanese sure know how to make things last.
While surveying global companies, researchers discovered that the oldest hotel in the world has been running in Yamanashi since 705 CE. Ichimonjiya Wasuke is a confectioner who has been selling sweet treats in Kyoto since 1000 CE.
Yoshinori Hara, dean and professor at Kyoto University’s Graduate School of Management attributes the longevity of Japanese companies to their commitment to sustainability over profits. Global Japanese companies like Suntory and Nintendo can trace their history as far back as the 1800s. He told the BBC, “In Japan, it’s more: how can we move [the company] on to our descendants, our children, our grandchildren?”
Tsuen Tea has been open since 1160 AD and is run by 38-year-old Yusuke Tsuen. Situated in Kyoto, Tsuen mentions that the business survived as it has kept its focus on tea. He says that many of his childhood friends were also born into centuries-old family-run Japanese businesses.
Unlike the US, Japanese towns and cities are centuries old and the culture focuses on community rather than having an individualistic outlook. Innan Sasaki, an assistant professor at the University of Warwick’s business school says, “More generally, we could say that it is because of the general long-term orientation: the culture of respecting tradition and ancestors, combined with the fact that it has been an island country with relatively limited interaction with other countries.” Common themes around Japanese culture center around a sense of identity based on social groups and place of birth, a polite and humble style of communication, a pragmatic approach to situations and challenges, as well as an appreciation and enjoyment of artistic activities and forms of entertainment.
Most of the oldest Japanese companies are businesses that are family-owned and engaged in the hospitality or food industry.
Gaming company Nintendo has been in business since 1889, as a maker of playing cards for the Japanese game hanafuda. It later adapted to changes in technology and tastes, but stuck to its core competency of developing games for the general populace. Hara notes that sticking to the basic concept of what a company does, often helps it survive even when the world around it changes. For some, adapting to cultural changes has been hard. For example, the kimono weaving industry. Some businesses have branched out into producing different kinds of garments using the same principle.
Hara points to the fact that Japanese businesses also place a high value on customer service. Omotenashi, meaning to wholeheartedly look after guests, is a big part of Japanese culture. It permeates their everyday life and businesses are able to sustain themselves as they anticipate the needs of their customers and strive to offer them what they require.
The Japanese are also extremely resilient, having survived numerous natural and man-made disasters. Perhaps, it is this inherent resilience and commitment to tradition and values over finances that has allowed over 33,000 businesses to survive for over a 100 years in present-day Japan.
