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 language | English |
|---|---|
| Pages (from-to) | 1394-1408 |
| Number of pages | 15 |
| Journal | British Food Journal |
| Volume | 119 |
| Issue number | 6 |
| DOIs | |
| Publication status | Published - 2017 |
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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 journal › Article
}
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 -