Strategic Management of Japanese Companies in East Asia

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Building foreign subsidiaries, Japanese companies were inclined to directly invest into locations covered with capsules which are prepared by East Asian countries under the condition of favorite fair wind that we call 'folklore of Asian economic development'. The capsule means various ways to seal off the core business process from local environmental influences. In the mid of 90's the folklores became hot and caused the boom of foreign direct investment into East Asian countries. However, the Asian economic crisis faded not only the folklores but also the capsule effect. Japanese companies were forced to rebuild their business process so as to adapt to local business environments. The relatively big companies that are resourceful enough to make the capsule by themselves are able to keep their strong control over the foreign subsidiaries, and still develop the ethnocentric management. But the regional small and medium sized companies with less management resources braked hard to a stop of foreign direct investment. We conducted the research on what medium and small companies of the northern Kyushu went on their foreign business with their foreign partners in Korea and China without the capsule prepared by the government. We found that some companies made up the unique management style through adaptation to the local environment in Asian country. We classified them into four management styles along the capsule effect and corporate governance. We think the process-oriented management promoted by voluntary action chains will implicate the important way of management for foreign subsidiaries of regional companies after the Asian economic crisis.1. Globalization in Asia and Economic Folklores 2. Internationalization by Cupsule Effect and Governance 3. Managerial modes of overseas business 4. Discussion and Conclusion
九州大学の論文
2005-03-25

Strategic Management of Japanese Companies in East Asia

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