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1 – 10 of over 4000This chapter aims to investigate the relationship between levels of subsidiary autonomy and the performance of a subsidiary’s subunit (factory) in Japanese manufacturing…
Abstract
This chapter aims to investigate the relationship between levels of subsidiary autonomy and the performance of a subsidiary’s subunit (factory) in Japanese manufacturing subsidiaries in Thailand. We conducted ordinary least squares regression analysis based on a questionnaire survey of 50 Japanese manufacturing subsidiaries in Thailand and multiple case studies to investigate the causal relationship between subsidiary autonomy and factory performance. We have three main findings. First, the autonomy level of Japanese manufacturing subsidiaries is linked to the subsidiaries’ factories’ performance compared to factories in Japan, but not in other foreign countries. Second, high levels of subsidiary autonomy are negatively associated with factory performance. Third, there are two causal relationships: high factory performance leading to low subsidiary autonomy and high/low subsidiary autonomy leading to low/high factory performance. From this, we discussed whether the degree of resource centralization in the home country influences the relationship between the level of subsidiary autonomy and a subunit’s performance in the foreign subsidiary. Moreover, we discussed the possibility that the causal relationships between them are not necessarily direct causal relationships. We identified a new factor determining subsidiary autonomy and investigated the relationship between the subsidiary autonomy and performance of a subunit in the foreign subsidiary compared to the home country. Because this has not been discussed in previous studies, this chapter contributes to the study of headquarters–subsidiary relationships and gives guidelines to practitioners on managing subsidiary autonomy.
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Shigeru Asaba and Hideki Yamawaki
This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent’s size, the subsidiary’s age, and a…
Abstract
This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent’s size, the subsidiary’s age, and a complicated distribution system influence a subsidiary’s performance. There was little significant change in these determinants over a 20-year period. However, for subsidiaries that survived over the observation period of this study, some determinants changed. We also found that by forming joint ventures with Japanese firms, foreign firms can overcome the obstacle of distribution and circumvent the disadvantage of inexperience. Moreover, the mitigating effects of joint ventures vary, depending on the type of Japanese partner.
The study of franchising as a small business growth strategy is only weakly researched and understood. This preliminary, qualitative investigation examines the experiences of 17…
Abstract
The study of franchising as a small business growth strategy is only weakly researched and understood. This preliminary, qualitative investigation examines the experiences of 17 operational and five “failed” franchises in the UK, in translating their business concepts into a franchise format. It reveals that small firms select franchising as a growth strategy for both economic and idiosyncratic reasons, but that economic reasons tend to prevail. The findings suggest that franchising is a viable growth strategy for small firms and that per se it creates few major problems for growth‐oriented small businesses. It is argued that further research is needed, particularly into the experiences of “failed” franchises and into the problems encountered by growing small firms who do not adopt franchising as a growth strategy.
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Until around 1980, Japanese companies occupied a predominant position in Asia. Their Asian operations are managed by Japanese persons and in the Japanese language. This Japanese…
Abstract
Until around 1980, Japanese companies occupied a predominant position in Asia. Their Asian operations are managed by Japanese persons and in the Japanese language. This Japanese-style international management is well suited to transfer technology and know-how from Japanese parent companies to their overseas subsidiaries. But, it does not provide opportunities to local managerial and professional employees to display their abilities and initiatives. Japanese companies also have problems in Japan. They invest more in foreign countries than in Japan, which results in the hollowing out at home. Japanese companies are managed by old men and thus lack a strong leadership. Japanese multinationals are facing a challenging task of management innovation both at home and abroad.
For some years now the contemporary management literature has been burgeoning with articles on Japanese management practice. There is debate as to how representative of reality…
Abstract
For some years now the contemporary management literature has been burgeoning with articles on Japanese management practice. There is debate as to how representative of reality some of these accounts actually are, which practices are crucial to business success and whether their transfer to a Western context is possible or desirable. These concerns are by no means limited to academic circles; many prominent Western companies with manufacturing operations in the UK are experimenting with elements of “Japanese” management practice, particularly within the motor industry.
Masayoshi Ike, Jerome Denis Donovan, Cheree Topple and Eryadi Kordi Masli
This paper aims to investigate whether Japanese manufacturing multinational enterprises (MNEs) maintain local legitimacy in their host countries through adequate informing of…
Abstract
Purpose
This paper aims to investigate whether Japanese manufacturing multinational enterprises (MNEs) maintain local legitimacy in their host countries through adequate informing of local stakeholders with targeted corporate sustainability (CS) reporting.
Design/methodology/approach
The paper first identified specific CS activities that were considered important in four Association of Southeast Asian Nations host countries, through semi-structured interviews with 58 participants of 16 Japanese manufacturing MNEs. The degree of establishment of local legitimacy was then measured through the number of references made to these CS activities and other activities specific to the respective host countries in the CS reports of the MNEs across a five-year period.
Findings
The majority of MNEs in the sample were under-reporting items of specific interest to localhost country stakeholders potentially undermining the MNEs’ image. There were found to be differences on the topics published in CS reports compared to those mentioned in the interviews indicating potential issues with regard to internal communication between the subsidiary and headquarters offices.
Originality/value
A novel approach is taken to investigate the degree of local legitimacy established by MNEs through comparing the contents of interviews held at subsidiaries with their respective CS reports. This paper highlights the importance of considering MNE subsidiaries when addressing Target 12.6 of the Sustainable Development Goal 12: responsible consumption and production.
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For many years, the achievements of Japanese industry were regarded in Britain as remarkable, enviable perhaps, but essentially irrelevant. The arguments always put forward by…
Abstract
For many years, the achievements of Japanese industry were regarded in Britain as remarkable, enviable perhaps, but essentially irrelevant. The arguments always put forward by British managers to dismiss the possibility of learning from Japan were that Japanese workers, Japanese industrial relations, and many features of Japanese social life, were fundamentally different from British, and were essential to the success of Japanese manufacturing methods. With the arrival of Japanese manufacturing subsidiaries in Britain, many of which appear to be flourishing, those arguments have become weaker and British management has begun to look at the Japanese management approach with a more appreciative and acquisitive eye.
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Kiyohiro Oki and Norifumi Kawai
Based on a legitimacy perspective, this study aims to investigate when local sourcing, as a strategic legitimacy action, improves or impairs subsidiary performance. The authors…
Abstract
Purpose
Based on a legitimacy perspective, this study aims to investigate when local sourcing, as a strategic legitimacy action, improves or impairs subsidiary performance. The authors investigate the moderating role of regulatory/normative institutional distance in the relationship between local sourcing and subsidiary performance. Particularly, departing from prior relevant research, the authors reflect on the direction of institutional distance, categorizing it as either upward or downward institutional distance.
Design/methodology/approach
Using Japanese governmental data, this study performs a panel data analysis using a sample of 1,054 Japanese subsidiaries operating in 37 host countries over a 5-year observation period.
Findings
The authors reveal that downward regulatory/normative institutional distance more positively moderates the relationship between local sourcing and subsidiary performance than upward regulatory/normative distance.
Originality/value
There is little research that specifically discusses the performance effects of local sourcing while considering legitimacy concerns. Moreover, the results of analyses of the relationship between local sourcing and subsidiary performance in existing studies are inconsistent, suggesting that it is necessary to identify the boundary conditions under which local sourcing improves or impairs subsidiary performance. To fill these gaps, this study clarifies when local sourcing improves or impairs subsidiary performance based on a legitimacy perspective. The authors’ finding makes a clear contribution to the literature on strategic legitimacy actions and input localization in multinational corporations.
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Nguyen Thi Duc Nguyen and Atsushi Aoyama
The purpose of this paper is to quantitatively evaluate which of the elements of five management practice constructs – management commitment, quality practice, team-based work…
Abstract
Purpose
The purpose of this paper is to quantitatively evaluate which of the elements of five management practice constructs – management commitment, quality practice, team-based work, training, and sharing and understanding – can significantly lessen the adverse impact of cultural differences on efficient technology transfer.
Design/methodology/approach
Exploratory factor analysis, confirmatory factor analysis, and structural equation modeling multigroup analysis are used to analyze structured survey data from 223 Japanese manufacturing subsidiaries in Vietnam.
Findings
The following are the primary factors that moderate the adverse impact of cultural difference on efficient technology transfer: employees’ understanding of quality; top managements’ communication of clear goals and procedures for technology transfer; the nature of the collaborative teamwork and frequent communication about technical issues among Japanese experts and Vietnamese staff; sending of key Vietnamese technical staff to Japan for technological seminars and on-the-job training while providing them with the appropriate materials and guidelines.
Practical implications
Although cultural diversity’s impact on technology transfer may never be problem-free, Japanese and Vietnamese managers should be aware of the effects of differing cultural values and use the appropriate interfaces to minimize cultural problems, maintain a cooperative environment, and transform cultural values into business value.
Originality/value
Cross-cultural technology transfer research, from the knowledge-based perspective, has produced interesting findings but has not yet identified which managerial elements effectively reduce the adverse impact of cultural difference on efficient technology transfer. This study addresses that shortcoming through the organizational learning perspective.
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J Alex Murray and David L Blenkhorn
Traditional North American supplier‐manufacturer behaviour functions on a channel control model with a competitive bid posture dominating the relationship. The arrival of Japanese…
Abstract
Traditional North American supplier‐manufacturer behaviour functions on a channel control model with a competitive bid posture dominating the relationship. The arrival of Japanese manufacturing subsidiaries in North America and Europe, however, is forcing suppliers to reconsider previous decision rides in dealing with manufacturers within a more cooperative mode because of the unique Japanese processes. The focus here is on comparing organisational buyer behaviour in North America and Japan. As North American firms become suppliers to the Japanese, knowledge of this behaviour becomes increasingly important. Implications are presented for understanding Japanese influences in the organisational buying process through utilising a generalised model from the marketing literature. In addition, a framework for examining the participation and coping behaviour of North American firms is presented.