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: Chapter in Book/Report/Conference proceedingChapter

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
Title of host publicationJapanese Firms in Transition
Subtitle of host publicationResponding to the Globalization Challenge
Pages289-324
Number of pages36
DOIs
Publication statusPublished - 2004 Dec 1
Externally publishedYes

Publication series

NameAdvances in International Management
Volume17
ISSN (Print)1571-5027

ASJC Scopus subject areas

  • Business and International Management

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  • Cite this

    Asaba, S., & Yamawaki, H. (2004). CHANGES IN THE DETERMINANTS OF PROFIT: A STUDY OF FOREIGN SUBSIDIARIES IN THE JAPANESE MANUFACTURING INDUSTRIES IN THE 1980s AND 1990s. In Japanese Firms in Transition: Responding to the Globalization Challenge (pp. 289-324). (Advances in International Management; Vol. 17). https://doi.org/10.1016/S0747-7929(04)17012-1