International Investment and Industrial Structure: New Theoretical Implications From the Japanese Experience
            1

Ozawa, Terutomo

doi:10.1093/oxfordjournals.oep.a041438

Cited by 91 publications

(32 citation statements)

References 18 publications

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“…These monopolistic advantages include technological capability, firm scale, product differentiation, and so on. Consequently, Kojima (1973) and Ozawa (1979) proposed an alternative perspective, arguing that ODI is driven by the worsening of macroeconomic conditions (e.g. labour cost, exchange rate, and stringent environmental regulation).…”

Section: Literature Reviewmentioning

confidence: 99%

What drives China’s outward direct investment?

2015

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This study examines the determinants of China's outward direct investment (ODI) between 2003 and 2009. We fi rst analyse the structure and dynamics of ODI. We propose three testable hypotheses including technology sourcing, resource seeking, and political linkage. Various estimates show that technology sourcing is supported moderately, whereas resource seeking serves one of primary driving forces. Crucially, the motive of political linkage is signifi cantly related to ODI and it is particularly relevant to developing destinations. This fi nding indicates that China tends to invest in developing countries with high political risk, which is in contrast with the prediction of the FDI theory. Furthermore, a developing country with high political risk seems to be the favoured destination for China's ODI to acquire technologies and resources.

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Section: Literature Reviewmentioning

confidence: 99%

What drives China’s outward direct investment?

2015

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“…A theory of familiarity emerged, arguing that firms were less likely to invest in culturally distant markets. Yoshino (1976) and Ozawa (1979) The Illusion of Linearity. Also embedded in the distance metaphor is the assumption of linear impact on investment, entry mode and performance.…”

Section: Cultural Distance and The Launch/sequence Of Foreign Investmentmentioning

confidence: 99%

Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences

2001

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Cultural distance is a widely used construct in international business, where it has been applied to foreign investment expansion, entry mode choice, and the performance of foreign invested affiliates, among others. The present paper presents a critical review of the cultural disew constructshave gained broader acceptance in the international business literaturethan cultural distance (CD). Presumablymeasuring the extent to whichdifferentculturesaresimilaror different, the constructhasbeen applied to most business administrationdisciplines, i.e., management, marketing, finance and accounting. In management, CDhas been used as a key variablein strategy,management, organization behavior and human resource management.Theconstructhasbeen applied to a multitudeof research questions, from innovationand organizational transformation to foreignexpansion and technology transfer (Gomez-Mejia and Palich, 1997) and from affiliate performance to expatriateadjustment(Black and Mendenhall,1991).It is in the area of foreign directinvestment (FDI), howtance construct, outlining its hidden assumptions and challenging its theoretical and methodological properties. A comprehensiveframework for the treatment of the construct is developed and concrete steps aimed at enhancing rigor are delineated.ever,thatthe construct hashadits greatest impact.To understandthe appeal of the CD construct, it is usefulto recallthenature of the phenomenon it is set to capture. Complex,intangible and subtle, culture hasbeen notoriously difficultto conceptualize and scale (Boyacigiller, Kleinberg, Phillips and Sackmann, 1996). Establishing a measure gauging the "distance"betweencultureshasunderstandablypresented aneven greater challenge. Byoffering a seeminglysimple andstandardizedmeasureofcultural differences, the CDconstructoffereda tangible and convenienttool with which to bypass the complexities and intricacies of culture, yielding a quantitative measure to be employed in combinationwith other"hard" data (see Kogut and Singh, 1988).

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“…That is, data on firms that originate in different countries is extremely difficult to compile (Mayrhofer 2004). As a result, most studies sampled subsidiaries in a single host country, such as the United States, China, or australia, and/or from a limited number of home countries [for an exception, see Ozawa (1979)]. thus, it is not certain whether an observed investment pattern in an empirical setting is generalizable to others.…”

Section: Introductionmentioning

confidence: 99%

FDI Ownership Strategy: A Japanese-US MNE Comparison

2008

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and Key Results 0Much of the extant literature characterizes international joint venture (IJV) as a less stable and less successful form of organization. In this view, the IJV is considered a suboptimal ownership strategy, one where the firm lacks control over its operations, compared to wholly-owned subsidiary (WOS). 0 We tested this widespread view on IJV and WOS by analyzing a large, longitudinal sample of Japanese MNEs, comparing our results to those from US MNEs reported in Desai et al. (2004a) and Gomes-Casseres/Jenkins (2003). 0 Japanese MNEs showed a stronger preference for IJVs over the last two decades as compared to US MNEs. IJV performance exceeded WOS among Japanese firms in most sample years, while WOSs outperformed IJVs among US subsidiaries in all sample years. 0 Clear boundaries exist along the line of country-of-origin, with respect to the generalizability of the extant view toward IJVs.

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International Investment and Industrial Structure: New Theoretical Implications From the Japanese Experience 1

Cited by 91 publications

References 18 publications

What drives China’s outward direct investment?

What drives China’s outward direct investment?

Cultural Distance Revisited: Towards a More Rigorous Conceptualization and Measurement of Cultural Differences

FDI Ownership Strategy: A Japanese-US MNE Comparison

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