Pre-clusterization in emerging markets: the Toyota group's entry process in China

F. Hatani

Asia Pacific Business Review, 2009, vol. 15, issue 3, 369-387

Abstract: Drawing on network analysis and informing the internationalization process of Japanese firms, this study introduces an ad hoc entry strategy, termed ‘pre-clusterization’. Unlike conventional keiretsu firms, competitive suppliers in a well-integrated network can enter a new market and begin clustering in a location that the core firm targets before the full entry of the core firm. The process of pre-clusterization is illustrated using a case study of the Toyota Group in China. A number of testable propositions are presented. Findings reveal the importance of strategic collective actions when coping with intensive competition and uncertainty in emerging market contexts.

Date: 2009
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Citations: View citations in EconPapers (3)

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DOI: 10.1080/13602380802667353

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