Omission bias under risks and Japanese companies stagnation in emerging markets: Managers f information gaps between head office and local office

Noriko Fujita ()
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Noriko Fujita: Graduate School of Economics, Osaka University

No 17-24, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: This paper analyse the background of stagnation in the emerging market by Japanese companies. From the case study of the global strategy of Kokuyo Co.,Ltd. and questionnaires and interview surveys for Japanese companies, I found the possibility that managers f omission bias of head office prohibited decision making especially in situations where risks are strongly recognized. Resource allocation are required in noncontiguous market, but managers f omission bias prohibit entering innovation spiral through glearning by doing h. It is important to create a system with conscious of the bias elimination based on the decision theory.

Keywords: emerging market strategy; decision-making; omission bias; Japanese enterprises (search for similar items in EconPapers)
JEL-codes: M16 M31 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2017-07
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