Japanese Multinationals

A defining feature of Japan's emergence as a global economic superpower has been Japanese firms' establishment of thousands of affiliate operations in North America, Europe, and Asia. Despite the tremendous importance of this development, there have been surprisingly few articles published on the management of Japanese operations abroad, and even fewer attempts to collect and make sense of this scholarship. Schon Beechler and Allan Bird remedy this situation with Japanese Multinationals Abroad: Individual and Organizational Learning, a unique collection of essays from an international and interdisciplinary group of scholars. The book opens with an introduction by the editors, followed by a chapter analyzing the evolution of research on multinational enterprises in general and on Japanese multinational corporations in particular. The remainder of the book is divided into three sections. In the first section the contributors address the impact of Japanese management practices on individuals and groups, analyzing the interactions between Japanese expatriates and local employees that lead to negotiated "third cultures." The second section shifts to the business unit level, examining the ways in which Japanese firms attempt to transfer or substantially modify home country management philosophies, policies, and practices to fit the local affiliate. The final section, focused on the corporate level, deals with the impact of subsidiary management activities on the organization as a whole. The contributors address various aspects of organizational learning related to the transfer of managerial knowledge from subsidiary to parent or from one overseas affiliate to another. Japanese Multinationals Abroad: Individual and Organizational Learning addresses a set of issues that are critical for both international business researchers and practicing managers. It not only provides an integrated picture of how Japanese employees and organizations learn to adapt and prosper, it presents an clear lessons for all multinational corporations, regardless of their national origins.

Since the bursting of Japan’s bubble economy, from 1990 onwards, its multinational companies (MNCs) have faced new competitive challenges, and questions about the management practices on which they had built their initial success in global markets. Japanese engagement in the international economy has undergone a number of phases. Historically, Japanese MNCs learnt from foreign companies, frequently through strategic alliances. After the post-war ‘economic miracle’, Japanese manufacturers in particular converted themselves into MNCs, transferred their home-grown capabilities to overseas subsidiaries, and made an impact on the world economy. But the period after 1990 marked declining Japanese competitiveness, and asked questions about the ability of Japanese MNCs to be more responsive and global in their strategies, organization, and capabilities. It has been argued that the established management practices of Japanese MNCs inhibited adaptation to recent demands of global competition. This volume presents new case evidence on how Japanese MNCs have responded to the new challenges of the global market place, and it provides examples of how they have transformed strategies and competitive capabilities. This book was originally published as a special issue of Asia Pacific Business Review.

International in perspective, this volume provides insights into the important problem of how to transfer Japanese practice to Western countries. It also examines key aspects of Japanese multinationals and discusses how they are developing their global strategies and how they are managing their local workforces. Topics covered include relations with suppliers, governments and competitors, leadership patterns and business philosophy. The impact of Japanese multinationals on the local economies of host countries is a particular focus. The dynamics of strategic alliances, technology transfers and research and development centres are also discussed.

This collection explores the expansion of Japanese multinational firms into Asia, a process which paralleled the region's growth as a major economic region. The contributors discuss a wide range of topics, including the reasons for moving manufacturing to other countries, the flow of tradebetween Japan and these countries, technology transfer within firms, the impact of Japanese management practices in other Asian countries, and competition between Japanese and American firms in Asia.

China is poised to gain global importance as a growth engine for the world economy on a par with Europe and the USA. Japanese multinational enterprises are increasingly active in relocating to China their R&D and capital- and knowledge-intensive production for both export-platform and target market reasons. It is at the juncture of the growing impact of China-related activities of Japanese corporations on the transformation of Japanese management philosophies, on the one hand, and the transformation of the Japanese economy more generally, on the other, that this book is situated. As Japanese corporations re-align activities to increasingly accommodate the growing importance of China as a business location, inter-regional expansion will integrate more deeply the Chinese economy within their global strategies, business structures and decision-taking. By presenting current research and thinking on the significance of corporate Japan’s growing engagement with China, the book explores the following imminent questions: What is China’s future position in the global corporate activities of Japanese firms? How has China’s investment profile changed and how and with what purpose do Japanese firms enforce their Chinese presence? The book sheds light on the implications for European businesses and policy-makers of the consequences of deepening integration of these two economic powerhouses. This book was published as a special issue of Asia Pacific Business Review.

'Ando's well-researched comparison of Japanese automobile and pharmaceutical investment in Europe not only provides a compelling demonstration of the strategic and organizational diversity of contemporary Japanese multinationals, but illustrates the challenges faced by all multinationals by the complex and multi-faceted process of European integration.' - Geoffrey Jones, Harvard Business School, US This book explores the regional strategy and management of Japanese MNEs in Europe. Ken-ichi Ando investigates, using case studies of the auto and pharmaceutical industries, how these companies can, and do, overcome the inherent difficulties and opportunities of trading in Europe, including the problems posed by cultural differences and geography, alongside the opportunities of expanding markets. While these companies are global players, they must increasingly be aware of, and evolve in response to, European economic integration. The strategy setting and management are influenced by company- and industry-specific factors, and some common features can be found. The locational and entry strategies are based both on the multinationals' own resources and capability, and on the changing locational conditions, while pan-European management is conducted to achieve the benefits of 'multinationality' at the regional level. The mutual relationships between the location of subsidiaries, the entry mode, and the pan-European operation are clearly shown from the detailed analysis at the company level. The impacts and limits of the EU on multinationals are also confirmed in the book, and the importance of national characteristics is suggested. Scholars and graduate students studying international business and economics, as well as European integration will find this book of great interest.