Abstract
Developing localized products that accurately reflect the needs of local customers became an important issue for many Japanese companies that have globally expanded using standardized products. This is because the reasoning and value standards of local customers concerning cost or product performance are tacit market knowledge. Thus, the technological knowledge of home country engineers is not enough for developing successful localized products. Here, the role of local engineers becomes critical. In the case of Denso India, local engineers have been sent to Japan for training since the late 1990s, that is, when new Denso factories were launched in India. The purpose of the training is to strengthen local engineering capabilities by encouraging talented local engineers. This served to effectively connect Japan's technological knowledge with the knowledge of local markets. The local engineers who were trained in Japan have access to technological resources at Denso's headquarters. In addition, local engineers can observe and interpret customer needs more accurately and incorporate them into products designs because they share tacit market knowledge with the local customers. This case highlights the importance of training and utilizing local engineers for connecting technological knowledge in the headquarters with market knowledge in the host country.
