Do Parts Suppliers Follow Their Customers’ FDI?

Yasushi Moriuchi (), Kazuya Ise and Xingyuan Zhang
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Yasushi Moriuchi: University of Nagasaki
Kazuya Ise: Kyorin University
Xingyuan Zhang: Kyoto Women’s University

Management International Review, 2025, vol. 65, issue 1, No 3, 42 pages

Abstract: Abstract This study investigates the correlation between parts suppliers’ business dependence on their customers and the timing of their subsequent actions regarding customers’ foreign direct investment (FDI), a relationship that has not been empirically examined in previous studies. We focus on the Japanese automotive industry and explore how parts suppliers’ dependence on customers affects their FDI behavior. Using a multinomial logistic regression model, we analyze data from 152 Japanese companies, involving 4228 FDI cases in 29 countries and regions worldwide. Our findings indicate that parts suppliers that depend on customers for business tend to synchronize their FDI-related decisions with those of their customers, investing in the same countries and at similar times.

Keywords: Resource dependence; Foreign direct investment; Follow the customer; Parts suppliers; Automotive industry (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s11575-024-00565-1

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