The number of Japanese small and medium-sized enterprises to invest in Vietnam has been increasing since 2010. This paper shows the challenges and key success factors in their investing in Vietnam based on author’s own experience.
Now, the development in Myanmar attracts world attention. In March 2011, Myanmar moved from military to civilian rule. U Thein Sein from the army was appointed as the president. Contrary to the anticipation of general people, he tackled democratic reforms and improvement of human right abuse. Obviously, he aimed to improve the aggravated relationship with Western countries and remove the economic sanctions imposed by them. Following political reforms, the Thein Sein administration, then, put an emphasis on economic reforms in order to draw foreign direct investments （FDI） that were regarded as essential for Myanmar’ s economic development. Japan decided to resume yen loan to Myanmar in April 2012 and the United States permitted new investments by the US companies and lifted the ban on ﬁnancial transaction in July 2012. Thus, a lot of business chances were created in Myanmar by the removal of economic sanctions. However, the hard infrastructure such as road, transportation, communication, ports and power is utterly insuﬃcient. Especially, the power shortage is a serious problem for industrialization. Now, the government tries to do the best for creating the Special Economic Zones （SEZ） with full infrastructure. Above all, the SEZ of Thillawa that will be partly opened in 2015, is regarded as most important and promising. This SEZ is going to be jointly managed by public organizations and private companies of both Japan and Myanmar. So far, the main investors to Myanmar were China, Thailand, Hong Kong, Singapore and the UK, but, on the other hand, Japan is only ranked as 10th as of 31 May 2014. In terms of ﬁgures of investment, Japan look like little interests in Myanmar, but, this situation will be drastically changed in a few years. The investments may substantially increase triggered by the completion of Thillawa SEZ and permission of operations of foreign banks.
Foreign direct investments by Japanese companies that focus on the cost reduction in the manufacturing process and the development of new markets have been increasing in ASEAN countries, especially after the yen appreciation since 2008. Under this background, the number of Japanese small and medium sized companies has been dramatically increasing since 2011. This paper describes 1） the situation of foreign direct investment in Cambodia, 2） the key factors of foreign direct investment by Japanese companies, and 3） the management strategy of Japanese small and medium sized companies in Cambodia. In the manufacturing sector, the main purpose of companies is categorized into 1） establishment of the increase production base, 2） vertical diversiﬁcation, 3） horizontal diversiﬁcation, 4） enjoyment of the tax incentives, 5） expansion of the domestic market, and 6） acquisition of the natural resources. Most of manufacturing companies in charge of export processing are located at the Phnom Penh Metropolitan area. In the service sector, related to B to B business, main customers are also Japanese companies in Cambodia, and related to B to C business, main customers are Japanese and consumers in the domestic market. Foreign direct investments by Japanese SMEs would be continuously increasing under the achievement of the AFTA scheme, and the development of human resources and infrastructures.
In recent years, there were some foreign investors who were forced to exit from successful joint venture FDI. Family Mart Japan was forced to exit from CVSJVFDI in Korea and Vietnam. PepsiCo was forced to exit from JVFDI, Sermsuk. Danone was forced to exit from JVFDI Wahaha. This essay tries to explain such exits of foreign investors from JVFDI with Institutional theory of Selznick and Berger and Luckmann, and shows possible solutions to prevent foreign investors from exiting JVFDI. Selznick says in his Institutional theory, that institution may have a social value under interactions with its environment, and the social value may be changed from its original purpose of the institution. Such social value can be coordinated and controlled by a top leader of the institution. If a top management of a JVFDI is dispatched from its local partner, he or she may justify exit of foreign partner with its social value. But the proposed social value is sometimes introduced with proﬁt making purpose of its local investor from JVFDI not with proﬁt making purpose of the JVFDI itself and does not match with its real environment. Berger and Luckmann show Institutionalization can be processed under interactions of the institution from externalization, objectivation and internalization. If a top management of a JVFDI proceeds in externalization and objectivation of certain social value of the JVFDI, the foreign investor of the JVFDI may prevent its internalization with appealing counter social value toward multiple stakeholders of the JVFDI including local government and employees. This strategy can be supported with several cases including above mentioned exit cases, JVFDI of TOTO, Thailand, PT NNT Indonesia and Marubeni initiated industrial estate JVFDI in Philippines. This analysis can be useful in equity localization request and can be supported with stakeholder capitalism of JVFDI.
The headquarters’ supports assist oversea subsidiaries when they face problems of technology and management. Our suggestion in this paper is that expatriate-experienced staﬀs in the headquarters’ support system can have important roles although researchers in the literature of expatriates pay less attention to the roles of expatriates after returning to their home country, but have emphasized that the expatriates play distinctive and signiﬁcant roles as a means of managing the learning and transfer of management competence, and having eﬀective control over international subsidiaries of multinational corporations （MNCs）. This study examines the strategic integration of expatriate assignments into the human resource activities that ﬁrms utilize to develop human resources. Results indicate that strategic expatriate management practices would include the activities from selection to repatriation.
In this paper, I consider the automotive battery business for EV / PHV, which has come to attention in the automotive market. I pick up the Korean battery maker Samsung SDI and LG Cham’s eﬀorts in this field. The two companies of EV / PHV automotive battery business for has been done in the relationship between diﬀerent companies and business-to-business relationship in the conventional automotive market. I point out that. In the electric car market, such as EV / PHV, battery manufacturers in business-tobusiness relationships with automobile manufacturers, has built unprecedented inter-company relationship, you are aﬀecting the future of the automotive battery manufacturer's eﬀorts. These diﬀerent companies’ relations is due to the speciﬁcity of the method of mounting a battery to be used in the EV / PHV. For this reason, in the EV / PHV, no division of labor in conventional has been built in battery procurement.
The BOP strategies of Multinational Enterprises （MNEs） are not directly linked to one of the biggest social issues facing newly-emerging countries, reducing poverty. Conventional competitive strategies are ineﬀective in solving BOP social issues in such countries. This paper argues that micro-finance by local NGOs can create a foundation for employment in local communities, discouraging rural inhabitants from migrating to the informal sector in urban areas, and helping create a foundation for local autonomous and sustainable business ecosystems. This paper also looks at Granma Inc., a Japanese venture company mediating between the social issues of local NGOs, and the knowledge owned by foreign companies.
In this paper we mainly discuss the “cost penalty” in order to oﬀer new perspective on the “lifecycle of parts localization”. First, we deﬁne cost reduction process, then we consider the changing point of the “cost penalty eﬀect”. Finally we oﬀer analysis of the “lifecycle of parts localization”
Globalization, after the collapse of cold war regime, has created job opportunities for many people who live in developing economies. Developing economies tend to have various kinds of problems such as poor social and physical infrastructure, political unrests, and shortage of human resources with high quality. However, Multi National Enterprises （MNEs） have advanced in those economies, seeking for low cost of labors and huge potential markets. Bangladesh is also one of the emerging economies which many MNEs deserve attention to. The present paper identiﬁes the attributes, job satisfaction, organizational behavior, and skill formation of the core workers by taking up both Japanese ﬁrms and Bangladeshi ﬁrms operating in Bangladesh Export Processing Zone. The research methodology is the analysis based on the capital formation and earning performance. The major points of the research are as follows. The capital formation analysis shows three findings. First, the current wage level of Japanese firms is higher than that of Bangladeshi firms, being reflected in the length of service. Second, both the loyalty to firms and the job satisfaction which the local workers employed in Japanese firms have are higher than those engaged in Bangladeshi firms. Third, the skill formation system of Japanese firms is well established, compared with that of Bangladeshi firms. The earning performance analysis also indicates another three findings. First, workers employed in the firms with poor performance generally have low job satisfaction. Second, the skill promotion system of the firms with poor performance is behind that of the firms with good performance. Third, workers employed in the firms with poor performance tend to have considerably the willingness to leave their firms.
This paper clariﬁes what kind of eﬀect SME ﬁnancial policy brought for the growth of SMEs in a period of the economic growth from 1960s through 1970s of Korea. That is to clarify a role of the government to carry out for economic development of Korea. The Korean SMEs of the mid-1970s considerably grew up, because the SME ﬁnancial policy was developed positively. The position of SMEs rose in the number of companies, the number of employees, a production, a value added. Moreover, SMEs greatly contributed to increase in exports. However, SMEs had various structural weakness. For example, SMEs in the processing and assembly industry was a low value-added processing trade enterprise. The technical standards of the SMEs were very low. The ﬁnancing structure of the SMEs was weak. Therefore, SMEs simply grew up quantitatively. The SME ﬁnancial policy from the 1960s through the 1970s did not lead to self-sustaining development of SMEs. In other words, the intervention of the Korean government for the growth of the SMEs in this period was ineﬃcient.
The Korean business conglomerate （called chaebol） is characterized by common ownership and management. Conventionally, the owner-managers, who are the controlling shareholders, possess absolute right of control, and all authority is concentrated with them. Furthermore, this right of control is also maintained across the second-generation managers （as well as the third- or fourth-generation managers, depending on the group）
through inheritance. Therefore, in a chaebol, inheritance is an important process to succeed and maintain right of control, and it has been employed through various means. However, the methods by which these inheritances took place were not legitimate, and there have been frequent instances where they have triggered a variety of social problems. Given this backdrop, this research aims to identify the basis of the problems related to inheritance in a chaebol and discuss the causes of their origin.
One of the most important requirements, on a maker’s side, for maintaining and strengthening the competitiveness of their product in emerging markets is that the maker should be able to make a wide range of satisfactory responses to their users’ diversifying needs. For ﬁnely satisfying their users’ diversifying needs, the customizability of their product is really important. Such customizability of a product complements its own ability to meet the users’ needs. On the other hand, in good response to users’ needs for being able to use a durable consumer product in a long term, after-sales service （such as repairs） by a maker and/or its aﬃliate as well as the quality and durability of their product itself are also essential requirements.
Such customization and after-sales repairing are supposedly performed by product makers, but many cases of them in emerging markets are uniquely performed by other enterprises than such makers. This system is deﬁned as After-Market. Its role is thought to help a product remain competitive and become more competitive in emerging markets.
This paper examines an actual case of the abovementioned requirements. The author made researches on, for analytical purpose, country-tailored models of Honda’s Super Cub sold and used in Vietnam and Cambodia, both of which are emerging economies.
As a result, it has been found out that Super Cub is well-designed and structured for easy customization and repairs. Also it has been found that the existence of After Market associated with such customization and repairs of Super Cub models is one of the essential factors contributing to the strong competitiveness of Super Cub in such emerging countries.
China enjoys its huge automobile market. The automobile sales broke 19.3 million in 2012. However, its
clustering ability, as well as its actual state of clustering competitive power is still unclear. This study attempts
to figure out the state of China’s automobile industrial clusters, which has been neglected in preceding
To appraise automobile industrial competitive power, we formulate a set of index system, which is composed
of production scale, funds power, management capacity, profitability and growth potential, separately. First,
according to this index system, using principal component analysis （PCA）, we investigate the clustering
competitive power of 21 provinces in China. The top six are Jilin, Hubei, Shandong and Guangdong province,
as well as 2 municipalities, namely Shanghai and Beijing. Then, in order to diagnose whether the automobile
industrial cluster has been appeared, we use location quotient （LQ） to calculate market concentration rate.
The result is as follows: taking the above provinces and municipalities as center, China’s automobile industrial
cluster can be divided into Shanghai cluster（ including Zhejiang province）, Hubei provincial cluster（ including
Anhui province）, Beijing cluster, Jilin provincial cluster, Guangdong provincial cluster and Chongqing cluster.
At last, using PCA again, we obtain the actual state of clustering competitive power based on these six
provinces and municipalities. The Shanghai cluster, which possesses the strongest comprehensive economic
competitiveness, is the fastest developing cluster in China. The Guangdong provincial cluster reaches better
profit. In addition, regarding management, the Beijing cluster displays excellent potential.
This paper argues about rising state-owned enterprises （SOEs） and state-holding enterprises （SHEs） in China. Most of Fortune Global 500 listed Chinese companies are SHEs. State owned sector average wage is 3.8 times as high as private sector average wage. Market oriented reform is not meaning privatized. China’s SOEs and SHEs enhanced their performance and competitiveness over the past decade. Their performance derives from efficiency rather than their monopoly powers. “Administrative Monopoly”view is not fact. Industrial concentration is not high. Most of SOEs and SHEs are exposed to market competition. But, government provides preferential treatment to SOEs and SHEs, including government procurement. State-owned Assets Supervision and Administration Commission （SASAC） guides efficiency and competitiveness scheme for SOEs and their subsidiaries.