Explaining the poor performance of Japanese direct investment in the United States

Shujiro Urata

Research output: Contribution to journalArticle

4 Citations (Scopus)


The poor performance of U.S. affiliates of Japanese firms appears largely due to adherence to the Japanese style management by Japanese firms. The heavy reliance on parent firms and subcontracting system for the procurement of parts, and technology transfer through on-the-job training have incurred substantial cost. Rushed undertaking of FDI in response to trade restrictions resulted in inadequate pre-project evaluation, leading to poor performance.

Original languageEnglish
Pages (from-to)49-62
Number of pages14
JournalJapan and the World Economy
Issue number1
Publication statusPublished - 1998 Jan



  • Foreign direct investment
  • Japanese style management

ASJC Scopus subject areas

  • Economics and Econometrics
  • Finance

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