Sierk A. Horn

Japanese management at a crossroads? The changing role of China in the transformation of corporate Japan

This introduction to the special issue, ‘Cross-cultural management practices in East Asia: lessons for Japanese MNEs’, argues that better understanding is needed of how the economic rise of China is influencing the transformation of corporate Japan. After examining key trends in the evolution of Sino-Japanese business relations, we consider potential triggers of corporate transformation under the headings of marketing and distribution, inter-corporate networks and human resources management. Each of these areas is discussed in the context of increasing engagement of Japanese firms with the Chinese economy and the ability of Japanese firms to transfer sources of competitive advantage to this emerging market.

Japanese foreign direct investment in India: An institutional theory approach

This article charts the history of Japanese corporate engagement with India. While there has been a profound historic relationship between the two nations, economic interaction is commonly portrayed in the context of geographical and psychic distance. As institutions set the rules of corporate engagement, we analyse the evolving regulatory and policy regime for foreign direct investment (FDI) in post-independence India and the corporate strategies of Japanese multinational enterprises (MNEs) in response to this institutional change. Using a firm-level dataset we show that the trajectory of Japanese investment in India broadly follows that of other nationalities of foreign firms. Differentiated responses to institutional changes are detected by industry. Our analysis reveals important instances of Japanese firm flexibility and pragmatism vis-à-vis the rapidly growing Indian market.

Product adoption and innovation diffusion: the case of Japanese marketing to China

Along with the growing prominence of China in corporate strategy and decision-taking, Japanese firms are increasingly aligning their activities to accommodate the shift towards a customer-led market environment and the advent of a major consumer market on Japans doorstep. This study shows how Japanese firms adjust their marketing to changes in Chinese consumption patterns and address the impact of geographical and socioeconomic variables on innovation diffusion. By taking a fresh look at the marketing challenges amidst latent consumer ethnocentrism and cosmopolitanism, this study generates fresh insights into the reconfiguration of Japanese marketing and retailing activities in this emergent market.

The changing role of China in the transformation of corporate Japan

This conclusion to the special issue, ‘Cross-cultural Management Practices in East Asia: Lessons for Japanese MNEs’, examines how Japanese firms are responding to, and are affected by, increasing engagement with the Chinese economy. In addition to the three specific themes identified a priori to be of greatest concern to the transformation of corporate Japan (namely marketing and distribution, inter-corporate networks and human resources management), two additional themes can be discerned. These relate to institutional evolution and the challenges of localization. It is concluded that Japanese firms can be shown to demonstrate flexibility in their engagement with China within this analytical framework.