The regional nature of Japanese multinational business

Simon Collinson and Alan Rugman
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Simon Collinson: Warwick Business School, The University of Warwick, Coventry, UK

Journal of International Business Studies, 2008, vol. 39, issue 2, 215-230

Abstract: In the world's largest 500 firms, there are 64 Japanese multinational enterprises (MNEs) with data on regional sales, but only three operate globally; whereas 57 of them average over 80% of their sales and foreign assets in their home region. Why is there such a strong intra-regional dimension to their activities? Using empirical data and a new framework for analysing both downstream (sales) assets and upstream (production) assets we analyse why most large Japanese firms appear to have firm-specific advantages (FSAs) that are based in their home region. A structural contingency approach is applied to two case studies to explain how home-region-bound FSAs constrained the ability of Japanese MNEs to implement internationalisation strategies. Journal of International Business Studies (2008) 39, 215–230. doi:10.1057/palgrave.jibs.8400347

Date: 2008
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