Withdrawal of overseas subsidiaries from Asia

the case of the Japanese food industry

Daisuke Takahashi, Tsaiyu Chang

    Research output: Contribution to journalArticle

    Abstract

    Purpose: The purpose of this paper is to analyze the factors that have influenced the withdrawal of Japanese overseas food industry subsidiaries from Asia. Design/methodology/approach: The data refer to Asian subsidiaries of Japanese companies engaged in food production activities. The data set covers 545 overseas subsidiaries from 2003 to 2014, and the total number of observations is 3,513. A linear probability model examines the factors influencing the probability of a subsidiary withdrawing. Findings: The results show that strong relationships between parent companies and overseas subsidiaries, specifically in terms of personnel and capital, reduce the likelihood of withdrawal. The number of years in business has a positive effect on withdrawal. Additionally, investment aims, such as the establishment of an international production network and acquisition of host country markets, affect the probability of withdrawal. The results are similar for subsidiaries in China and other countries, but there are differences regarding subsidiaries’ histories and investment aims. Originality/value: There is limited research on food companies withdrawing from overseas markets. This study bridges the gap in the literature by compiling micro-level data and conducting a quantitative analysis of such withdrawals from overseas markets. The originality of this study is that it shows the effects of investment aims on subsidiary withdrawal, representing various aspects of overseas subsidiaries, and compares the estimation results with the recent trends in food markets in Asia.

    Original languageEnglish
    Pages (from-to)1394-1408
    Number of pages15
    JournalBritish Food Journal
    Volume119
    Issue number6
    DOIs
    Publication statusPublished - 2017

    Fingerprint

    Food Industry
    food industry
    markets
    Food
    Product Recalls and Withdrawals
    Statistical Factor Analysis
    Linear Models
    China
    food production
    Economics
    human resources
    quantitative analysis
    Research
    history
    Asia
    Subsidiaries
    Food industry
    methodology

    Keywords

    • Asia
    • Food industry
    • Japan
    • Overseas subsidiary
    • Subsidiary withdrawal

    ASJC Scopus subject areas

    • Food Science

    Cite this

    Withdrawal of overseas subsidiaries from Asia : the case of the Japanese food industry. / Takahashi, Daisuke; Chang, Tsaiyu.

    In: British Food Journal, Vol. 119, No. 6, 2017, p. 1394-1408.

    Research output: Contribution to journalArticle

    Takahashi, Daisuke ; Chang, Tsaiyu. / Withdrawal of overseas subsidiaries from Asia : the case of the Japanese food industry. In: British Food Journal. 2017 ; Vol. 119, No. 6. pp. 1394-1408.
    @article{e27c0be5293e474e9e7751b757dfd830,
    title = "Withdrawal of overseas subsidiaries from Asia: the case of the Japanese food industry",
    abstract = "Purpose: The purpose of this paper is to analyze the factors that have influenced the withdrawal of Japanese overseas food industry subsidiaries from Asia. Design/methodology/approach: The data refer to Asian subsidiaries of Japanese companies engaged in food production activities. The data set covers 545 overseas subsidiaries from 2003 to 2014, and the total number of observations is 3,513. A linear probability model examines the factors influencing the probability of a subsidiary withdrawing. Findings: The results show that strong relationships between parent companies and overseas subsidiaries, specifically in terms of personnel and capital, reduce the likelihood of withdrawal. The number of years in business has a positive effect on withdrawal. Additionally, investment aims, such as the establishment of an international production network and acquisition of host country markets, affect the probability of withdrawal. The results are similar for subsidiaries in China and other countries, but there are differences regarding subsidiaries’ histories and investment aims. Originality/value: There is limited research on food companies withdrawing from overseas markets. This study bridges the gap in the literature by compiling micro-level data and conducting a quantitative analysis of such withdrawals from overseas markets. The originality of this study is that it shows the effects of investment aims on subsidiary withdrawal, representing various aspects of overseas subsidiaries, and compares the estimation results with the recent trends in food markets in Asia.",
    keywords = "Asia, Food industry, Japan, Overseas subsidiary, Subsidiary withdrawal",
    author = "Daisuke Takahashi and Tsaiyu Chang",
    year = "2017",
    doi = "10.1108/BFJ-08-2016-0357",
    language = "English",
    volume = "119",
    pages = "1394--1408",
    journal = "British Food Journal",
    issn = "0007-070X",
    publisher = "Emerald Group Publishing Ltd.",
    number = "6",

    }

    TY - JOUR

    T1 - Withdrawal of overseas subsidiaries from Asia

    T2 - the case of the Japanese food industry

    AU - Takahashi, Daisuke

    AU - Chang, Tsaiyu

    PY - 2017

    Y1 - 2017

    N2 - Purpose: The purpose of this paper is to analyze the factors that have influenced the withdrawal of Japanese overseas food industry subsidiaries from Asia. Design/methodology/approach: The data refer to Asian subsidiaries of Japanese companies engaged in food production activities. The data set covers 545 overseas subsidiaries from 2003 to 2014, and the total number of observations is 3,513. A linear probability model examines the factors influencing the probability of a subsidiary withdrawing. Findings: The results show that strong relationships between parent companies and overseas subsidiaries, specifically in terms of personnel and capital, reduce the likelihood of withdrawal. The number of years in business has a positive effect on withdrawal. Additionally, investment aims, such as the establishment of an international production network and acquisition of host country markets, affect the probability of withdrawal. The results are similar for subsidiaries in China and other countries, but there are differences regarding subsidiaries’ histories and investment aims. Originality/value: There is limited research on food companies withdrawing from overseas markets. This study bridges the gap in the literature by compiling micro-level data and conducting a quantitative analysis of such withdrawals from overseas markets. The originality of this study is that it shows the effects of investment aims on subsidiary withdrawal, representing various aspects of overseas subsidiaries, and compares the estimation results with the recent trends in food markets in Asia.

    AB - Purpose: The purpose of this paper is to analyze the factors that have influenced the withdrawal of Japanese overseas food industry subsidiaries from Asia. Design/methodology/approach: The data refer to Asian subsidiaries of Japanese companies engaged in food production activities. The data set covers 545 overseas subsidiaries from 2003 to 2014, and the total number of observations is 3,513. A linear probability model examines the factors influencing the probability of a subsidiary withdrawing. Findings: The results show that strong relationships between parent companies and overseas subsidiaries, specifically in terms of personnel and capital, reduce the likelihood of withdrawal. The number of years in business has a positive effect on withdrawal. Additionally, investment aims, such as the establishment of an international production network and acquisition of host country markets, affect the probability of withdrawal. The results are similar for subsidiaries in China and other countries, but there are differences regarding subsidiaries’ histories and investment aims. Originality/value: There is limited research on food companies withdrawing from overseas markets. This study bridges the gap in the literature by compiling micro-level data and conducting a quantitative analysis of such withdrawals from overseas markets. The originality of this study is that it shows the effects of investment aims on subsidiary withdrawal, representing various aspects of overseas subsidiaries, and compares the estimation results with the recent trends in food markets in Asia.

    KW - Asia

    KW - Food industry

    KW - Japan

    KW - Overseas subsidiary

    KW - Subsidiary withdrawal

    UR - http://www.scopus.com/inward/record.url?scp=85019188277&partnerID=8YFLogxK

    UR - http://www.scopus.com/inward/citedby.url?scp=85019188277&partnerID=8YFLogxK

    U2 - 10.1108/BFJ-08-2016-0357

    DO - 10.1108/BFJ-08-2016-0357

    M3 - Article

    VL - 119

    SP - 1394

    EP - 1408

    JO - British Food Journal

    JF - British Food Journal

    SN - 0007-070X

    IS - 6

    ER -