Vertical Keiretsu and International Market Entry: The Case of the Japanese Automobile Ancillary Industry
This study investigated whether small Japanese automobile ancillary firms followed the major Japanese automakers in setting up production facilities in the United States. Based on Dunning's eclectic theory of foreign direct investment and resource dependence theory, hypotheses were generated to explain the determinants of foreign investment of Japanese suppliers. It was hypothesized that mutual dependencies between the major Japanese automobile firms and their suppliers, firm-specific ownership advantages, profitability, and keiretsu affiliation influenced the foreign direct investment of the first-tier automobile ancillary firms into the United States. Data on the entire population of 446 Japanese automobile ancillary manufacturers were obtained from archival sources. Logistical regression analyses indicated that keiretsu affiliation, previous international experience, small size, lower dependence of supplier firms on the automobile assembly firm, and higher dependence of core firms on affiliate firms all contributed to this foreign direct investment.© 1996 JIBS. Journal of International Business Studies (1996) 27, 89–113
Volume (Year): 27 (1996)
Issue (Month): 1 (March)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:27:y:1996:i:1:p:89-113. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Daniel Foley)
If references are entirely missing, you can add them using this form.