This paper analyzes the business deployment on Japanese SMEs in Shenzhen, China. The framework of study based on the internalization theory, and would try to clarify the factors "How" to apply on actual business development, especially concerning drastic change of Chinese economics. Main fact findings on this research are, previous scheme of labor intensive exporting oriented manufacturing may not allow in near future and Japanese SMEs find the way to survive in China as enforcing own R&D function and developing market including the business with subsidiaries of Japan, US and EU in Chine. How to get local staff and training, motivate them and delegation of decision making may also important factor for actual internalization activities and business deployment.

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India is a promising market in which the middle-income bracket is expanding rapidly, and yet many Japanese firms are not necessarily doing well in India. Firms such as Toyota Motor Corporation and Panasonic have been lagging behind Hyundai Motors and LG Electronics, Korean firms, in terms of market share and business performance. This paper investigates and compares market entry approaches as well as expansion strategies taken by Japanese and Korean firms in India. In conducting the study, we also explore the validity of operationalizing the concept of dynamic capabilities in marketing function, namely marketing dynamic capabilities (MDCs). Three key components of MDCs' framework, product development management, customer relationship management, and supply chain management are examined with the focus on their applicability regarding an emerging market. Academic literatures, industry journals and periodicals are reviewed to identify the areas of investigation, and hearings with the business practitioners are conducted to verify and complement the facts. The comparative study found the most significant difference in the process of product development management between Japanese and Korean firms: Korean firms conducted detailed market research upon entering the market, and developed products based on the research results. On the other hand, Japanese firms did not place importance on understanding local needs. They shifted their market approach in the late 2000's, yet a 10 year lag resulted in a significant difference in an area such as market share. With reference to customer relationship management, similarities are observed in media advertisement with TV commercials. They both strengthen sales and service organizations in preparing to tap the provincial areas. With regard to supply chain management, it is also similar that they all try optimizing costs through local procurement and production. The research findings imply the importance of order of practicing three key processes of MDCs, specifically in an emerging market; product development management being the most significant. Future research areas such as communications among a firm's head office and overseas subsidiaries, which falls outside of the MDCs' framework, are also discussed.

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The growing significance of small and medium-sized enterprises (SMEs) in China's economy is hard to ignore. However, Chinese private SMEs are facing many problems related to HRM (e.g., short-term employment, high turnover rate, etc.). Actually, there are a few studies on HRM in Chinese private SMEs, and very few of them are empirical studies. In particular, there is no study on HRM in SMEs within the three provinces in Northeast China. This paper aims to clarify how the business strategy of Chinese private SMEs impacts the Internal Labor Market (ILM) in China through an analysis of interviews with the management executives from 27 Chinese private SMEs manufacturing companies in northeast China (i.e., Liaoning province). The following conclusions were reached. Firstly, the level of ILM in Chinese private SMEs differs by business strategy. Secondly, the level of ILM in Chinese private SMEs has been associated with a particular hierarchy. Thirdly, there is a difference in the turnover rate even if the Chinese private SMEs carry out the training policies in the same way. Finally, with the development of Chinese private SMEs, human resource development (HRD) has become much more prominent. These results indicate that there are strong links between business strategy and ILM in Chinese Private SMEs. It also suggests that Chinese private SMEs should pay greater attention to HRM practices to achieve their potential future growth.

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