CHANGES IN THE DETERMINANTS OF PROFIT: A STUDY OF FOREIGN SUBSIDIARIES IN THE JAPANESE MANUFACTURING INDUSTRIES IN THE 1980s AND 1990s

Shigeru Asaba, Hideki Yamawaki

Research output: Contribution to journalArticle

1 Citation (Scopus)

Abstract

This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent's size, the subsidiary's age, and a complicated distribution system influence a subsidiary's performance. There was little significant change in these determinants over a 20-year period. However, for subsidiaries that survived over the observation period of this study, some determinants changed. We also found that by forming joint ventures with Japanese firms, foreign firms can overcome the obstacle of distribution and circumvent the disadvantage of inexperience. Moreover, the mitigating effects of joint ventures vary, depending on the type of Japanese partner.

Original languageEnglish
Pages (from-to)289-324
Number of pages36
JournalAdvances in International Management
Volume17
DOIs
Publication statusPublished - 2004
Externally publishedYes

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Subsidiaries
Manufacturing industries
Foreign subsidiaries
Profit
Joint ventures
Japanese firms
Subsidiary performance
Distribution system
Japan
Manufacturing
Foreign firms
Disadvantage

ASJC Scopus subject areas

  • Business and International Management

Cite this

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abstract = "This study examines the determinants of performance of foreign manufacturing subsidiaries in Japan. The study finds that a foreign parent's size, the subsidiary's age, and a complicated distribution system influence a subsidiary's performance. There was little significant change in these determinants over a 20-year period. However, for subsidiaries that survived over the observation period of this study, some determinants changed. We also found that by forming joint ventures with Japanese firms, foreign firms can overcome the obstacle of distribution and circumvent the disadvantage of inexperience. Moreover, the mitigating effects of joint ventures vary, depending on the type of Japanese partner.",
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