This study comparatively investigates the impacts of diversification and internationalization strategies on the performance of Japanese manufacturing firms during two major crises: the 2008 Global Financial Crisis（ 2005–2010） and the COVID-19 pandemic （2017–2023）. Using panel regression analysis on segmented data from firms listed on the Tokyo Stock Exchange PRIME market, the results reveal significant contextual dependencies in strategy effectiveness.

From a baseline perspective, diversification consistently exhibits negative associations with performance, while internationalization demonstrates positive associations with firm performance. Importantly, how these strategies affect performance varies significantly depending on the nature of the crisis. During the financial crisis, diversification showed moderating effects that reduced the magnitude of performance declines. In contrast, such moderating effects were not observed during the COVID-19 pandemic. Regarding internationalization, the strategy exhibited negative moderating effects during the financial crisis but demonstrated significant positive moderating effects during the pandemic.

This study represents the first comparative empirical analysis demonstrating that strategy-performance relationships vary systematically across different external environmental characteristics. These findings extend existing theoretical understanding of how strategies affect performance and highlight the importance of considering crisis types in strategic decision-making.

The ultimate goal of this study is to systematize the efficient and effective R&D and marketing functional integration mechanism in new product development projects of multinational corporations. To this end, it is essential to theoretically examine the impact of the contextual factors of the modern digitalized international market environment on the functional integration mechanism, referring to the key points of criticism that have prompted the revision of the Uppsala Model, and this is the main purpose of this paper. In the “functional integration mechanism of R&D and marketing in new product development projects of multinational corporations,” which is the subject of this study, we would like to raise the issue of the lack of discussion on the need for review or development that accurately captures the impact of changes in the market environment, such as digitalization, and the actual state of corporate internationalization. With this problem awareness in mind, this paper reviews literature related to the Uppsala Model research and functional integration mechanism, and strives to clarify the intersection area of both fields and the analytical perspective of this study. Finally, we attempt to derive proposition for future empirical research. It is our hope that this paper will not only serve as a starting point for future empirical research, but also serve as a starting point for discussion for further development of this research field as a whole.

What are the advantages of “internationalization by MNC subsidiaries” in which a mature overseas subsidiary manages a separate organization (sub-subsidiary) in a neighboring country by itself? In addition to existing studies that have explored the rationale from the overseas subsidiary’s side, this study focuses on the growth and management of the sub-subsidiary side. A case study of Denso Cambodia, a sub-subsidiary of Denso Thailand which is an overseas subsidiary of Denso (a Japanese automobile supplier), provides rich illustration to understand this phenomenon. Denso Cambodia has experienced steady growth (approximately tenfold) in terms of both number of employees and sales over the past 12 years since its establishment. In order to find out the reason for this, interviews were conducted with Japanese, Thai, and Cambodian managers in both the Thai and Cambodian organizations. As a result, it was found that having Thailand as the parent company has allowed the organization to set goals that match local conditions and has given it a high degree of freedom to explore various possibilities while deeply engaging with local stakeholders in Cambodia. Also, the physical distance between Thailand and Cambodia, as well as the psychological closeness due to the similarities in history, culture, and language, were also major advantages in transferring production from Thailand to Cambodia. This case provides an explanation for the advantages and rationale that management by a mature overseas subsidiary in a neighboring country brings to the growth of a sub-subsidiary. At the same time, it is interesting to note that the case indirectly highlights the challenges that would arise if the Japanese headquarters were directly involved. Although existing IB theories can explain internationalization by overseas subsidiaries as well, further theory building is needed to explain in which cases headquarters directly manage the subsidiary while other cases it is better to entrust the subsidiary to take over the management. Additionally, if this phenomenon increases in the future, how the global network of MNCs will change is also a topic that requires long-term research.

The ultimate goal of this study is to systematize the efficient and effective R&D and marketing functional integration mechanism in new product development projects of multinational corporations. To this end, it is essential to theoretically examine the impact of the contextual factors of the modern digitalized international market environment on the functional integration mechanism, referring to the key points of criticism that have prompted the revision of the Uppsala Model, and this is the main purpose of this paper. In the “functional integration mechanism of R&D and marketing in new product development projects of multinational corporations,” which is the subject of this study, we would like to raise the issue of the lack of discussion on the need for review or development that accurately captures the impact of changes in the market environment, such as digitalization, and the actual state of corporate internationalization. With this problem awareness in mind, this paper reviews literature related to the Uppsala Model research and functional integration mechanism, and strives to clarify the intersection area of both fields and the analytical perspective of this study. Finally, we attempt to derive proposition for future empirical research. It is our hope that this paper will not only serve as a starting point for future empirical research, but also serve as a starting point for discussion for further development of this research field as a whole.

What are the advantages of “internationalization by MNC subsidiaries” in which a mature overseas subsidiary manages a separate organization (sub-subsidiary) in a neighboring country by itself? In addition to existing studies that have explored the rationale from the overseas subsidiary’s side, this study focuses on the growth and management of the sub-subsidiary side. A case study of Denso Cambodia, a sub-subsidiary of Denso Thailand which is an overseas subsidiary of Denso (a Japanese automobile supplier), provides rich illustration to understand this phenomenon. Denso Cambodia has experienced steady growth (approximately tenfold) in terms of both number of employees and sales over the past 12 years since its establishment. In order to find out the reason for this, interviews were conducted with Japanese, Thai, and Cambodian managers in both the Thai and Cambodian organizations. As a result, it was found that having Thailand as the parent company has allowed the organization to set goals that match local conditions and has given it a high degree of freedom to explore various possibilities while deeply engaging with local stakeholders in Cambodia. Also, the physical distance between Thailand and Cambodia, as well as the psychological closeness due to the similarities in history, culture, and language, were also major advantages in transferring production from Thailand to Cambodia. This case provides an explanation for the advantages and rationale that management by a mature overseas subsidiary in a neighboring country brings to the growth of a sub-subsidiary. At the same time, it is interesting to note that the case indirectly highlights the challenges that would arise if the Japanese headquarters were directly involved. Although existing IB theories can explain internationalization by overseas subsidiaries as well, further theory building is needed to explain in which cases headquarters directly manage the subsidiary while other cases it is better to entrust the subsidiary to take over the management. Additionally, if this phenomenon increases in the future, how the global network of MNCs will change is also a topic that requires long-term research.