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The regional nature of Japanese multinational business

Author

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  • Simon Collinson

    (Warwick Business School, The University of Warwick, Coventry, UK)

  • Alan M Rugman

    (Kelley School of Business, Indiana University, Bloomington, USA)

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

Suggested Citation

  • Simon Collinson & Alan M Rugman, 2008. "The regional nature of Japanese multinational business," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 39(2), pages 215-230, March.
  • Handle: RePEc:pal:jintbs:v:39:y:2008:i:2:p:215-230
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Collinson, Simon C. & Wang, Rowena, 2012. "The evolution of innovation capability in multinational enterprise subsidiaries: Dual network embeddedness and the divergence of subsidiary specialisation in Taiwan," Research Policy, Elsevier, pages 1501-1518.
    2. repec:spr:manint:v:54:y:2014:i:5:d:10.1007_s11575-014-0220-9 is not listed on IDEAS
    3. Aggarwal, Raj & Berrill, Jenny & Hutson, Elaine & Kearney, Colm, 2011. "What is a multinational corporation? Classifying the degree of firm-level multinationality," International Business Review, Elsevier, pages 557-577.
    4. Adam R. Cross & Sierk A. Horn, 2009. "The changing role of China in the transformation of corporate Japan," Asia Pacific Business Review, Taylor & Francis Journals, pages 463-476.
    5. Jean-Luc Arregle & Toyah L Miller & Michael A Hitt & Paul W Beamish, 2016. "How does regional institutional complexity affect MNE internationalization?," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 47(6), pages 697-722, August.
    6. de Jong, Gjalt & van Houten, Jerry, 2014. "The impact of MNE cultural diversity on the internationalization-performance relationship," International Business Review, Elsevier, pages 313-326.
    7. Fastoso, Fernando & Whitelock, Jeryl, 2010. "Regionalization vs. globalization in advertising research: Insights from five decades of academic study," Journal of International Management, Elsevier, vol. 16(1), pages 32-42, March.
    8. Lundan, Sarianna & Tolvanen, Juha, 2008. "Regional and Global Patterns of Internationalisation of Finnish MNEs," Discussion Papers 1170, The Research Institute of the Finnish Economy.
    9. Oh, Chang Hoon & Rugman, Alan M., 2012. "Regional integration and the international strategies of large European firms," International Business Review, Elsevier, pages 493-507.

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