Modes of Corporate Internationalization: Japanese FDI Strategies in Asia-Pacific

Tachiki, Dennis S.

doi:10.1007/978-3-642-58257-8_6

Cited by 6 publications

(3 citation statements)

References 4 publications

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“…To examine the influence of parent knowledge and expatriate ratio on subsidiary performance in both the short and the long terms, we used a 15‐year time series (1989–2003). We adopted this time window because it can take over ten years for Japanese subsidiaries to fully realize a return on their parents' investment (Biggadike, 1979; Tachiki, 1999). We limited our sample to those subsidiaries launched between 1989 and 1992 to minimize the potential bias caused by different economic conditions that were prevalent during the founding period.…”

Section: Methodsmentioning

confidence: 99%

“…We used subsidiary performance in 1997 and 1999 as the performance measure for the period spanning 6–10 years, and those in 2001 and 2003 as the performance measure for the period spanning 11–15 years. We divided the long‐term time window at the point of ten years because parent resources invested in foreign subsidiaries might not be fully capitalized until after ten years (Biggadike, 1979; Fang et al., 2007; Tachiki, 1999). This ‘extended’ long‐term period (i.e.…”

Section: Methodsmentioning

confidence: 99%

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Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance

Fang

Jiang

Makino

et al. 2009

J Management Studies

235

207

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The impact of knowledge transfer on foreign subsidiary performance has been a major focus of research on knowledge management in multinational enterprises (MNEs). By integrating the knowledge-based view and the expatriation literature, this study examines the relationship between a multinational firm's knowledge (i.e. marketing and technological knowledge), its use of expatriates, and the performance of its foreign subsidiaries. We conceptualize that expatriates play a contingent role in facilitating the transfer and redeployment of a parent firm's knowledge to its subsidiary, depending on the location specificity of the organizational knowledge being transferred and the time of transfer. Our analysis of 1660 foreign subsidiaries of Japanese firms over a 15-year period indicates that the number of expatriates relative to the total number of subsidiary employees (1) strengthened the effect of a parent firm's technological knowledge (with low location specificity) on subsidiary performance in the short term, but (2) weakened the impact of the parent firm's marketing knowledge (with high location specificity) on subsidiary performance in the long term. We also found that the expatriates' influence on knowledge transfer eventually disappeared. The implications for knowledge transfer research and the expatriate management literature are discussed. Copyright (c) 2009 Blackwell Publishing Ltd and Society for the Advancement of Management Studies.

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance

Fang

Jiang

Makino

et al. 2009

J Management Studies

235

207

View full text Add to dashboard Cite

show abstract

“…Relative to firms from other countries, Japanese firms may be more likely to exit later rather than earlier, making our result for Hypothesis 2a a conservative estimate. Japanese firms tend to refrain from exiting in the first few years of foreign operations (Delios & Beamish, 2001), given the long-term orientation and willingness of MNE parents to allow foreign subsidiaries a 5-to 10-year window to ''get set up'' abroad (Tachiki, 1999). Japan itself is moreover highly susceptible to natural disasters of various types and severities, such that a break-out of violent conflict elsewhere would perhaps pose less impact on Japanese MNEs than on counterparts from other countries that do not routinely undergo such experiential learning.…”

Section: Discussionmentioning

confidence: 99%

The timing and mode of foreign exit from conflict zones: A behavioral perspective

2022

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We examine the timing and mode of firm exits from host-country conflict zones. We argue that timing and mode are interdependent decisions where decision ordering matters, and show that a firm’s prioritizing of either exit timing or mode is dependent on the relative salience of two behavioral stimuli: (1) the firm’s own experience (i.e., its performance shortfall), and (2) the experience of peer firms (i.e., their exits). Using instrumental variables modeling on a sample of 101 Japanese MNE exits from 11 conflict-afflicted countries between 1991 and 2005, we demonstrate that, when mode is prioritized over timing, partial exits tend to occur earlier and whole exits later. However, when timing is prioritized over mode, the decision choices reverse: earlier exits tend to be whole and later exits partial. The outcome of one decision therefore affects that of the other in a unique and predictable manner, such that the ordering of the decisions both produces and precludes strategic choices. Our findings, based on a multidecision problem that has traditionally been treated as a single decision (i.e., foreign exit), delineate expanded boundary conditions for satisficing, as well as reconcile optimizing and satisficing behaviors.

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International diversification, subsidiary performance, and the mobility of knowledge resources

Fang

Wade

Delios

et al. 2007

Strategic Management Journal

169

155

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We examine the link between international diversification, organizational knowledge resources, and subsidiary performance. The success of international corporate diversification depends on a firm's capability to transfer knowledge to its subsidiaries, and how its local subsidiaries effectively utilize that knowledge. As knowledge resources are imperfectly mobile, a firm may find it difficult to transfer knowledge to its subsidiaries. In our analysis of 4964 Japanese subsidiaries over a 14‐year period, we find that knowledge that is valuable, but not rare, positively affects subsidiary performance in the short term, but not the long term. In contrast, knowledge that is both valuable and rare affects subsidiary performance in the long term, but not the short term. Copyright © 2007 John Wiley & Sons, Ltd.

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Modes of Corporate Internationalization: Japanese FDI Strategies in Asia-Pacific

Cited by 6 publications

References 4 publications

Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance

Multinational Firm Knowledge, Use of Expatriates, and Foreign Subsidiary Performance

The timing and mode of foreign exit from conflict zones: A behavioral perspective

International diversification, subsidiary performance, and the mobility of knowledge resources

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