An empirical analysis on “go-abroad" strategy of Japanese auto-related companies

How their strategic roles intentions influence on their investment network?

Abstract

Globalization of market and production promote investments in overseas locations. In case of Japanese auto-related industries, joint capital investments are selected. This study demonstrates the influence of overseas locations' strategic roles in their investment network positions. First, we create the investment network between investment firms and overseas locations. Second, we conduct a multivariate analysis using indexes of network positions, the financial data of investment firms, and the purpose of investments. The analysis reveals that the influence of overseas locations' strategic roles in investment network positions has both positive and negative effects. The findings give us deep insights on how important it is for auto-related manufacturing companies to set up intelligent investment portfolio for their foreign advance.