Journal Name: Asian Business & Management: March 2009, Volume 8, Number 1
China, India and Brazil: Tiger technologies, dragon multinationals and the building of national systems of economic learning (pp5-32)
John Mathews (Macquarie Graduate School of Management, Macquarie University, Sydney NSW 2109, Australia)
The biggest business story today is China, along with India and Brazil. These three emerging giants are predicted by Goldman Sachs to account for over half of global business activity by 2050. Competition and strategy as practised by these countries - and by firms and countries of the Asia-Pacific more generally - can no longer be thought of as a 'peripheral' feature of the world economy. Now Asia-Pacific - its firms, industries, countries - is moving to the core of the global economy, whereas strategies and competitive behaviours developed here are proving to be of much more than peripheral interest. In this paper I reflect on the technology leverage strategies developed to enter advanced industries (tiger technologies), on the accelerated internationalization achieved through complementing the global value chains created through globalization (dragon multinationals) and on the national innovative capacities developed in the region, and to what extent the practices of China, India and Brazil in developing national systems of economic learning may be said to replicate the strategies that worked so successfully in East Asia. The paper concludes that the propagation of East Asian strategies to these emerging giants promises much greater success than in countries following the precepts of the Washington Consensus.
Keywords: China, India, Brazil, East Asian model, renewable energies, industrial development
Japanese financial service firms in East and Southeast Asia: Location pattern and strategic response in changing economic conditions (pp33-58)
Patrik Ström (Swedish Collegium for Advanced Study, Linneanum, Thunbergsvägen 2, S-752 38 Uppsala, Sweden and Department of Human and Economic Geography, School of Business, Economics and Law, University of Gothenburg, Box 630, Göteborg S - 405 30, Sweden) and Naoyuki Yoshino (Keio University, 2-15-45 Mita Minato-ku, Tokyo 108-8345, Japan)
This paper explores the internationalization and location pattern of Japanese financial service firms in East and Southeast Asia. During a period of prolonged economic problems in the Japanese domestic market and a turbulent period in Asia because of the Asian financial crisis of 1997, the situation for these service providers has changed drastically. The research question that the paper seeks to answer is: what are the spatial patterns and underlying reasons for strategic location response in Japanese financial service providers in East and Southeast Asia in the post-Asian financial crisis period? The paper puts forward a set of potential responses that these firms can pursue to strengthen their regional competitiveness.
Keywords: Japan, service firms, networks, economic geography, internationalization
Multinationals and public policy in Korea (pp59-82)
In Hyeock Lee (Department of Management, Gordon Ford College of Business, Western Kentucky University, 1906 College Heights Blvd., Bowling Green, Kentucky 42101-1058, USA) and Alan M Rugman (L. Leslie Waters Chair in IB, Kelley School of Business, Indiana University, 1309 East 10th Street, Bloomington, Indiana 47405-1701, USA)
It is now accepted that multinational enterprises (MNEs) are the key institutions driving globalization. The world's 500 largest MNEs account for about 90 per cent of the world's stock of foreign direct investment (FDI). In this paper, we explore the Korean data on both inward and outward FDI (1990-2004), and suggest firm-level explanations of foreign investment decisions of MNEs. The main findings are twofold: (1) both inward and outward FDI of Korea is regional in nature and (2) three main shifts in the MNE-host government relationships have contributed to the symmetry of FDI in Korea.
Keywords: Korea, multinational enterprises, foreign direct investment, FDI symmetry, regional MNEs, firm-specific advantages
Does one size fit all? A dual double diamond approach to country-specific advantages (pp83-102)
Dong-Sung Cho (College of Business Administration, Seoul National University, Seoul 151-742, Korea), Hwy-Chang Moon (The Graduate School of International Studies, Seoul National University, Seoul) and Min-Young Kim (Department of Business Administration, College of Business, University of Illinois at Urbana-Champaign, 1206 South Sixth Street, Champaign, Illinois 61820, USA)
In this era of globalization, an accurate analysis of country-specific advantages (CSAs) is imperative for multinational corporations (MNCs) to thrive in global competition. Integrating previous extensions of Porter's diamond model, this paper introduces the 'dual double diamond' (DDD) model as a new approach to analyze CSAs of countries with various characteristics, and empirically tests the explanatory power of each model. The results show that the generalized double diamond (GDD) and nine-factor (NF) models have better explanatory power than Porter's diamond when assessing CSAs of countries with high international connectivity and high human-factor dependency, respectively, and that the DDD model is more comprehensive than the GDD and NF models in explaining CSAs of countries with heterogeneous attributes. This paper also discusses the implications of the DDD model for MNCs investing, or planning to invest, in Asian countries.
Keywords: Porter's single diamond model, dual double diamond model, country-specific advantages, national competitiveness, multinational corporations
The effect of specific organizational and managerial factors on the performance of foreign subsidiaries in Japan (pp103-123)
Rene W Kaeppeli (Institute for Leadership Studies (ILS), College of Business, Rikkyo (St. Paul's) University, 3-34-1 Nishi-Ikebukuro, Toshima-ku, Tokyo 171-8501, Japan)
The purpose of this study is to examine what performance variables are most important to operating successfully in Japan, with its particular challenges, and which variables best explain and predict the performance of foreign subsidiaries there. This will be investigated by focusing on Swiss subsidiaries operating in Japan. The framework incorporates the following factors: characteristics of a parent company and its subsidiary, manager characteristics, length of time of market penetration and length of time that the wholly owned subsidiary has operated in Japan. Data were collected from 51 subsidiaries and analyzed using the correlation method and cross-tabulation. The study results provide support for the assertion that parent company and subsidiary characteristics, as well as manager features, have an influence on how a subsidiary performs in Japan.
Keywords: foreign subsidiaries, key success factors, performance, challenges, Japan
(This journal is available online: http://www.palgrave-journals.com/abm)
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