Alleviating poverty through business is the main objective of the Base of the Pyramid Business. Therefore, BOP business should create both social and economic value. In part 1, two methods will be discussed. Firstly, the social needs at the BOP layer are met by two types of company operations. The first operation is called responsive BOP business. The company reacts to external pressure from the firm's stakeholders and acts in a vague way. The other operation is called proactive BOP business. The company addresses the social issue of penalties through the BOP and the BOP acts as the core of the company's business. Secondly, there is the potential of switching a company's operations from beyond responsive BOP business to proactive BOP business. In part 2, the case of Sumitomo Chemicals establishing Olyset Net in Africa will be examined. It has been dealing with the problem of Malaria since 1960. In studying the Sumitomo case, it is apparent that the paradigm shift can be divided into three steps of business processes (responsive BOP business→proactive BOP business, BOP version 1.0→proactive BOP business, BOP version 2.0) and three types of business models (Assisted→Market driven→Production driven). Furthermore, the key factors that are needed to make the paradigm shift will be considered. In conclusion, through surveying the case of Sumitomo Chemical, it is clear that transforming from beyond responsive BOP business to proactive BOP business can create shared values at the BOP layer.

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Japanese Brazilians seem to have potentialities as "Third Culture Persons" for the competitive advantage of Japanese-affiliated companies in Brazil, as they are likely to be relatively familiar with Japanese culture and language. Nevertheless, the preceding studies show that their human resource management of Japanese Brazilians has not been effective. The purpose of this paper is to discuss the current situations and challenges of human resource management at Japanese-affiliates, mainly from the viewpoints of utilization of Japanese Brazilians. The questionnaire survey of Japanese-affiliates conducted by the author revealed that they confirmed the characteristics such as diligence, honesty and punctuality in their Japanese Brazilian employees. The companies also highly evaluated their Japanese fluency as well as their retention rates and loyalty. On the other hand, we could not point out any progress in the localization of top management positions nor globally-integrated human resource management systems. In addition, the number of companies which pay allowances for Japanese language proficiency was very small. Contrary to our expectations, nearly half of the companies have recruited persons who have experienced "dekasegi" as their management executives, managers or white-collar employees. We can assume that Japanese affiliates expect them to play the role as "Third Culture Persons". Japanese-affiliates are required to reinforce their employmentability and eliminate the negative images concerning their human resource management by dealing with the challenges mentioned above. Furthermore, they should reconfirm the importance of the "Japanese Communities" in Brazil as an intermediary between Japan and Brazil. On the other hand, the "Japanese Communities" in Brazil have to show their raison d'etre as the supply bases of "Third Culture Persons", who have attained the qualitative transformation through "dekasegi". It may take a long term approach to solve these issues. This means that collaborative efforts among the headquarters, subsidiaries and the "Japanese Communities" in Brazil are necessary.

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In this paper, a case study is conducted to illustrate the restructuring of business portfolio by internationalization of new business activities. Business activities of a case company named KGS Corporation are divided into two areas: existing business, which competitive advantage is in decline and new business that is still in a start up phase. KGS Corporation has put a priority on internationalization of new business and as a result it has succeeded in acquisition of market share. Through this case study, I examine the significance of internationalization of new business activities in case of small and medium sized enterprises, which are subject to resource limitation.

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The purpose of this study is to examine the relationship between the host-country environment and overseas R&D activities of Japanese firms. In other words, we explore which aspect (market or innovation) of the host-country environment is considered by the Japanese firms when they conduct overseas R&D. Analysis with affiliate-level data shows that Japanese firms are still placing importance not on the innovation level, but on the market size in the host-country environment. This result may suggest that, as argued by previous studies, the Japanese firms still lack sufficient international experience to gain and utilize the new technological knowledge globally. However, another result shows that the international experience of firms does not moderate the relationship between the innovation level in host-country environment and R&D activities in foreign affiliates; that is, the lack of international experience may not explain the delay in internationalization of R&D activities by the Japanese firms. We discuss the reason for the Japanese firms to consider market rather than innovation in the host country environment for their overseas R&D activities, by focusing on the close relationship between firms in home country (Japan) that have been a source of competitive advantage to the Japanese firms.

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Globalization of research and development by multinational corporations, which is considered as the last corporate function to be globalized, is being increased and accelerated. The purpose of this paper is to discuss about the determinants of product development capability building in local subsidiaries. What factors and conditions encourage the capability building? Does the bigger size of market, like China, trigger speedy localization of product development capability? Or, initial heavy investment in facilities and equipment help it? To answer those research questions, case studies of Denso's subsidiaries in India, China, Thailand, Korea, America and Italia are conducted. The six subsidiaries, which are born out of the same headquarter, are comparatively analyzed. Especially, the focus is set on the way each of the subsidiaries have formed their own product development capability in different settings and context. The results can be summarized as follows. Firstly, it is found that location choice factors of existing studies cannot explain the following capability building process or speed. Secondly, from the case study of the six subsidiaries, customer heterogeneity is pointed out as a stimulator of the capability building.

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The purpose of this research is to reveal what effect the type of Japanese pharmaceutical companies' international alliances for their overseas expansion and their management resources. For example, we try to reveal, Japanese companies' alliance value chains(R&D/ sales and marketing), alliance partners (foreign big pharmaceutical firms/biotechnology startups) and their resources. In order to verify above issues, we conducted a questionnaire survey for 43 Japanese pharmaceutical companies and interviewed two companies which are proactive to make alliances with foreign companies in this paper. In this study, the following are the findings regarding the international development of Japanese pharmaceutical companies. (1) The international development model differs depending on the technological fields; for example, meta-national management in the field of biotechnology and the developments based on in-house resources in the field of low molecular weight compounds. (2) Holding specific in-house resources is a premise even in the field of biotechnology, which aims for international development through meta-national management. (3) In overseas bio-venture alliances, Japanese pharmaceutical companies display strengths in the downstream field of research and development in areas such as cooperative management. The introduction of high-quality finished products is observed in cases where an alliance is formed. There are three limitations of this paper. (1) 43 samples are too small to generalize the conclusions which are derived from the study. (2) The survey results are being measured only by increased international sales expansion overseas over the past five years, not being measured by stages in their international expansion. (3) Each element of R&D/sales and marketing alliances is not discussed enough in the paper. In order to challenge these limitations, the study tries a simple triangulation using interview research. Besides the quantitative analysis will proceed, including a more detailed survey, an analysis of dense data through case studies, are required to increase the robustness of the findings.

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This paper investigated the evolution of manufacturing system in overseas factory, through the analysis of Hyundai Motor's manufacturing system transferred to China. Beijing Hyundai Motor Company (BHMC) factory is modeled after Korean Asan factory. BHMC factory has managed to develop more flexible manufacturing system than the home country's factory. It has been found that the developed elements came from Hyundai Motor's manufacturing ideal. Hyundai motor developed manufacturing ideal in their home country, but it could not be realized because of the environmental constraints. In foreign country without environmental limitations, ideal factory could be built. This paper argues that the manufacturing ideal is a key factor of manufacturing system evolution in the overseas factory.

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The purpose of this article is as follows. First, this article explains the long-term Japanese management of two foreign pharmaceutical enterprises that had invested in Japan after the World War II. Then, it clarifies a feature of Japanese management of foreign pharmaceutical enterprise through comparing these two cases. This time, the following enterprises were chosen as case studies. The first is Merck & Co. (USA) which invested in Japan by establishing a joint-venture enterprise. The second is Schering AG (Germany) which ran Japanese business without any relationship to large Japanese pharmaceutical enterprises. And, this article discusses that paying attention to the point how foreign pharmaceutical enterprises had used "Social Capital" in Japan. Specifically, this article analyses how these two enterprises established relations with outside factors, especially medical doctors that had deeply involved the pharmaceutical business, and utilized resources, for example information and relationships between medical doctors, that were embedded in social network of medical doctors. So, this article considers and compares the cases from a specific viewpoint, therefore it discusses in terms of a comparative business history. The facts found out from these two cases are as follows. First, foreign pharmaceutical enterprises built trust relationships with medical doctors based on providing and sharing scientific information. And so, these enterprises were able to use resources embedded in social network of medical doctors by those relationships. In doing so, they introduced new drugs to Japanese market continuously and smoothly. In other words, they have achieved the continuous growth by creating "Capability of take advantage of Social Capital" in Japan. Second, in order to use Social Capital, it was essential to improve the basic ability of Japanese subsidiary. So, foreign enterprises transferred their possessed knowledge to the Japanese subsidiary. Last, the continuous growth, caused as a result of the continuous utilizing of many Social Capitals, was influenced by the entry strategy to Japan and enterprise strategy of foreign pharmaceutical enterprises.

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The objective of this study is to empirically examine the relevance of expatriates' individual and non-work related differences in predicting their job performance. Examples of the individual factors include previous overseas assignments, language proficiency and pre-departure willingness to work in the country of assignment. Examples of non-work related factors include family situation. Building on the contingency approach to selection of expatriates developed by Tung (1981), the analysis expands to investigate the moderating role of expatriate's managerial rank and type of assignment. A questionnaire survey was conducted and data from 435 Japanese expatriate managers working at 37 Japanese subsidiaries in ASEAN countries (i.e., Singapore, Malaysia, Philippines, Thailand, Vietnam, and Indonesia) were analyzed through hierarchical regression analysis. The results indicate that previous overseas assignments, English language proficiency, and pre-departure willingness to work in the country of assignment were predictive to Japanese expatriates' job performance in ASEAN countries. The results provide support for Tung (1981) model by indicating that the relationship between antecedent variables and expatriate success is moderated by managerial rank of expatriate. Type of assignment, by contrast, does not seem to moderate this relationship. In order for Japanese multinational corporations (MNCs) to be more confident when selecting expatriates by making their decisions based on empirical findings using Japanese data rather than generalizing the results of research conducted in other countries, implications regarding the selection criteria and tools to be used by MNCs are also discussed.

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Many Japanese companies are always suffering from human resource management in China. One of the important issues is to develop and sustain core human resources i.e. people who really know the needs of Chinese market and possess the ability and know-how of management. Generally speaking, there is a set of rules to implement human resources development and internal promotion within a company in Japan. However, this is not the case for Japanese firms in China. It is more difficult to develop and sustain core human resources in a highly fluid labor market in China. In this paper, we use a small scale company as a case study to explore its internal mechanism of human resources development and internal promotion system of the company. The Japanese human resource management also has worked in China. It was found that the company could continuously strive to invest in company training in spite of large turnover by developing an education system that accommodate the features of China's employment market and building a system of securing people of expertise in which the company want to retain. Also, it is necessary to establish a personal relationship of trust between the management and the employees.

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