Disaster Impact

Abstract

This empirical study investigates the Great East Japan Earthquake of March 11th, 2011 and its impact on German firms located in the Kanto area. It becomes evident that German firms were negatively impacted immediately after the disaster. More than half of all Japan based German firms either closed their offices or relocated to other parts of Japan. In addition, many of the firms reported a high fluctuation in the number of their classic expatriates, short-term visitors, and locally hired non-Japanese. However, 1 year after the disaster, Japan based German subsidiaries have largely recovered. All of the participants stated that they now operate “as normal.” Also, they no longer find it difficult to attract people to Japan.

Appendix: Questionnaire (English Version)

Impact of March 11th disaster on German companies in Japan

One year has passed since the triple disaster of March 11. In cooperation with the German Chamber of Commerce in Tokyo (DIHK), Kobe University is now conducting a scientific survey on the short and long-term impact of the Tohoku earthquake (“disaster”) on German companies in Japan.

We are collecting key people’s views on the situation of German companies following the disaster. The following questions will be focused on: How much were German companies affected by the disaster? Do they still suffer today or are their operations to normal? Our specific goal is to investigate about human resource aspects. How were different groups affected, such as expatriates from German headquarters, short term visitors or local hired managers?

This study is being carried out by Prof. Dr. Ralf Bebenroth of Kobe University, who holds a tenured position at the Research Institute for Economics and Business Administration.

If you are interested in the survey results, please leave your name and contact at the end of the survey. We reassure you that this survey only serves scientific purposes and will be evaluated anonymously.

The questionnaire will take you not more than 12 minutes to fill out all the questions. Thank you for your cooperation.

Kind regards,

Ralf Bebenroth

Questions:

• 1. How greatly do you sense change at your company because of the triple Tohoku disaster ("disaster") on March 11th?

  • 1.1. What was your company’s condition in the weeks after the disaster?

    Maintained operations as normal

    Office was temporarily closed and staff worked remotely

    Office was relocated temporarily to other parts of Japan

    Others (please specify):

  • 1.2. How would you describe your current operations?

    We operate as normal

    Office will be remaining relocated to another Japanese city

    Office is relocated to another Asian country

    Office is closed

    Others (please specify):

  • 1.3. How does the disaster affect your business?

    Will have a strong negative impact

    Will have a negative impact

    No noticeable impact

    Will have some positive impact

    Will have a strong positive impact

    Others (please specify):

  • 1.4. How will the disaster affect your business in the long run?

    Will have a strong negative impact

    Will have a negative impact

    No noticeable impact

    Will have some positive impact

    Will have a strong positive impact

  • 1.5. How did your company’s performance deteriorate immediately after the disaster?

    Sales volume has decreased

    Market share has decreased

    Profitability has decreased

    Innovation/development has slowed down

    No. of employees in office downsized

    Others (please specify):

  • 1.6. Compared to the Tohoku disaster, how serious for your company are the following issues?

    Strong yen appreciation

    High-cost labor in Japan

    Trouble solving issues with own headquarter

    Others (please specify):

  • 1.7. What would you guess is your headquarters’ policy towards your Japan operation?

    Headquarter wants to:

    Maintain Japan presence as normal

    Reduce presence in Japan

    Relocate Japan office to another (Asian) country

    Close down Japan office

    Others (please specify):

  • 1.8. How autonomous would you describe your office in the aftermath of the disaster? Our office management:

    Was able to challenge or refuse decisions of the headquarter

    Maintained strategic and operational decision autonomy

    Shared extensive communication headquarter

    Had full control over final decisions

    Had consistent procedures in making

    Others (please specify):

• 2. In the following, we would like to ask you some questions about 3 groups of employees: headquarter sent expatriates, short term visitors and about local hired non-Japanese (e.g. German) managers.

  • 2.1. Expatriates

  • 2.1.1. How did expatriates react to the disaster?

    Many of them left home right after the disaster

    It was very difficult to hold them in Japan right after the disaster

    We faced problems because of the sudden lack of staff

    It is still difficult to have them coming again to Japan nowadays

    We rely heavily on expatriates

    Others (please specify):

  • 2.1.2. How important do you consider the following reasons for appointing an expatriate to an executive position?

    Establishment and build-up Change in strategy

    Crisis management

    Development and initial training of local employees

    Coordination with mother company Product and sales knowledge Loyalty towards mother company External representation

    Backflow of information from Japan to headquarter

    Japan stay as part of HR development

  • 2.2. Short term visitors

  • 2.2.1. How did short term visitors react to the disaster?

    Many of our short term visitors did not come to Japan anymore

    We had a problem because of the sudden lack of them

    It was very difficult to attract them coming to Japan right after the disaster

    It is still difficult to have short term visitors coming to Japan nowadays

    We rely heavily on short term visitors

    Others (please specify):

  • 2.2.2. How important are short term visitors for the following areas?

    Special projects

    Strategy

    Operative day to day business

    Sales Marketing Controlling R&D

  • 2.2.3. Do short term visitors replace or supplement expatriates?

    Completely replace

    Rather replace

    Intermediate

    Rather supplement

    Only supplement

    Don’t know

  • 2.3. Local contracted (German, or other non-Japanese) managers

  • 2.3.1. What has changed in regard to local contracted managers?

    Many of them left home after the disaster

    We had a problem because of the sudden lack of them

    It was very difficult to find replacements after the disaster

    It is still difficult to find other local contracted replacements

    We rely heavily on local contracted managers

    Others (please specify):

  • 2.3.2. What are the advantages of having local contracted (e.g.) German managers instead of expatriates from the headquarter?

    Lower personnel costs compared to expatriates

    Job expertise

    Good knowledge of the Japanese market

    Convenience I speed of searching and finding personnel

• 3. Basic information about your company:

  • 3.1. What industry does your company operate in?

    Chemicals/Pharmaceuticals

    Consumer goods (durable/non-durable)

    Electrical industry/electronic components

    IT telecommunication

    Machinery and equipment

    Automotive and automotive suppliers

    Services (finance, insurance, consulting)

    Trading company

    Logistics

    Others (please specify):

  • 3.2. Company characteristics

    What is the nationality of the leading manager in your Japan office?

    German Japanese

    Others (please specify):

    Since when is your ·company active in the Japanese market?

    Year:

    Where is your office located?

    City:

    What is your current legal status of your company?

    100 % Subsidiary

    JV

    Representative office

  • 3.3. Employee characteristics

    How many employees do you have in your company globally?

    How many employees do you have in your office in Japan?

    How many employees were in your office in Japan before the disaster?

  • 3.4. Respondent characteristics

    What is your nationality:

    German, Japanese, Others (please specify):

    What is your age:

    To complement the survey, we plan to conduct interviews with managers of German companies in Japan. May we contact you for an additional interview (1 hour)?

    Yes

    No

    If you are willing to receive the survey results, please enter your contact data in the box below:

    Name and Company:

    Thank you very much for taking the time to answer this survey.

    Ralf Bebenroth,

    Research Institute for Economics and Business Administration Kobe University