Assignment Question

Assignment Question

How can we account for the rise and growing role of multinational enterprises from the Asia Pacific in the global economy? Specify your reasons using corporate cases of multinationals from different industries and different countries of origin.

Please note that when you are analyzing, for example, Japanese multinationals in the electronics industry, your comparisons do not have to be limited to Japanese rivals. Comparisons with Asia Pacific and European multinationals may be more apt and useful. The same point applies to Korea, Chinese and Taiwanese firms.

Consider a number of perspectives, including the aims of Japanese multinationals in relation to global strategies; the aims of Korean and Chinese multinationals and international business strategies; differences between industries and types of business; the degree of global versus regional control, and changes in operational control over time; the competitive advantages of these multinationals compared to those of rivals; variations in management, organization, and operations between home country and host nations; the ability of Japanese, Korean and Chinese multinationals to compete in Europe, Asia and North America, and their ability to adapt to changes in policy and markets; and the policies of host governments and the relevance of the EU.

When writing your assignment, remember, be very carefully with plagiarism. All assignments are turnitin and the marker will check the reports in details. Don’t be caught in plagiarism! You may receive zero for your assignment if caught on plagiarism.

How can we account for the rise and growing role of multinational enterprises from the Asia Pacific in the global economy? Specify your reasons using corporate cases of multinationals from different industries and different countries of origin.

Analysis

1. What is the question, and how do you provide a precise answer? What is your overall response, and then which analytical structure will you adopt to substantiate your stated view?

1. Background, business strategies and general patterns. When did nations begin to move towards large scale FDI? Where did the investment go? Are there differences in FDI patterns between industries or countries? Why did firms decide to become multinationals? What therefore was their strategy or motivation? Entry mode? Differences because timing of FDI, multinationals versus services, or between countries? To what extent are choices and decisions related to existing FDI theories and approaches? Market, efficiency, resource v asset seeking? What are the overall patterns in nations and between time periods?

To what extent does evidence support existing FDI theories and approaches? Or which FDI theories help to explain what happened in this and later sections?

To what extent do you need to include home and host government policies, and to what extent will you deal with this separately below?

1. How did MNEs, once set to be ‘multinational-ized’, succeed as multinationals? What O advantages, capabilities or resources did they possess to succeed, or what advantages, capabilities or resources did they need to acquire or develop when ‘multinational-izing’?

Analyze production and operations management as an ownership advantage? In which industries or companies, and generally for which nations has this been a source of advantage for multinationals, a reason for success?

1. Management of global production chains, or SCM? Overlap with production and operations management, but also a new dimension in terms of transnational based advantages?

1. R&D, innovation?

1. Brand, design, product, and marketing?

1. Management skills and experience? Human resource management skills, training, or is this not transferable?

1. Management and organization, or overlapped with point 7? To what extent have strategic needs evolved after the initial act of FDI, and how is this related to management, organisation, levels of centralization, decentralization, regionalization, arising strategies, changes in the relative fortunes of home and host markets? Employment of expatriates v locals? Ability of AP multinationals to change their organization and management style? Usefulness of FDI theories and approaches?

1. Role of government in stimulating inward FDI, and allowing and supporting outward FDI? Notion of institutional advantage? Political economy and macro-economic perspectives in FDI theories and approaches?

1. Conclusion. AP multinationals have some common characteristics that have allowed them to compete globally and in Europe, alongside companies from North America and Europe? Or differences between AP nations fundamental? Or differences between industries more important? Or general trends in 1980s, 1990s, or since 2000 more formative?

Bibliography

The following are some relevant bibliography; however, you are encouraged to do your own research as well. You will be able to find other relevant materials in academic journals as well as books in the online library, and online reliable sources such as Google Scholar.

*indicates initial reading or recommended for overview and case material

*D J Kim, Newly Industrializing Economies and International Competitiveness: market power and Korean electronics multinationals (2006)

J Shen and V Edwards, International Human Resource Management in Chinese Multinationals (2006)

J S Black, Sunset in the land of the rising sun: why Japan’s multinational corporations will struggle in the global economy (2010)

F Nicolas, Korea in the New Asia: East Asian integration and the China factor (2007)

W K Liang, Knowledge transfer and entry strategies of Taiwan multinationals, in DP Sullivan & JD Daniels, Multinational Enterprises and the Emerging Challenges of the 21st Century (2007)

N K Kim, Globalization and regional integration in Europe and Asia (2009)

K P Sauvant and W A Maschek, Foreign direct investments from emerging markets: the challenges ahead (2010)

*S.K.Vogel, Japan Remodeled: how government and industry are reforming Japanese capitalism (2006). Useful survey of implications of recent trends in the Japanese economy.

*J.Dunning and S M Lundan, Multinational Enterprises and the Global Economy (Elgar 2008). Look for the latest edition.

* M A Witt, Changing Japanese Capitalism: Societal Coordination and Institutional Adjustment (2008)

T.Elger and C.Smith, Assembling Work: remaking factory regimes in Japanese multinationals in Britain (OUP, 2005)

S.Urata, Overseas R&D Activities and Intra-Firm Technology Transfer: the Case of Japanese Multinationals (E.Elgar, 2003)

RA Belderbos and MLG Heijtjes, ‘The determinants of expatriate staffing by Japanese multinationals in Asia: control, learning and vertical business groups’, Journal of International Business Studies, May 2005

* A Gorzen and S Makino, ‘Multinational corporation internationalization in the service sector: a study of Japanese trading companies’, Journal of International Business Studies, Dec 2007

* T Roehl and A Bird, Japanese Firms in Transition: Responding to the Globalization Challenge

(Advances in International Management, vol. 17, Amsterdam and San Diego: Elsevier, 2005)

E Cleeve, ‘Japanese Foreign Direct Investment in the UK Electronic Industry: The Eclectic Approach’, Asia Pacific Business Review, Apr 2007, Vol. 13 Issue 2, pp183-200

J. Jaussaud and J Schaaper, ‘European and Japanese Multinational Companies in China: Organization and Control of Subsidiaries’ , Journal of Asian Business & Management, Sep 2007, Vol. 6 Issue 3, pp.223-245

Y. Yamazaki and D C Kayes, ‘Expatriate learning: exploring how Japanese managers adapt in the United States’, International Journal of Human Resource Management, Aug 2007, Vol. 18, Issue 8, pp.1373-1395

D Tan and J T Mahoney, ‘The Dynamics of Japanese Firm Growth in U.S. Industries: The Penrose Effect’, Management International Review, 2007, Vol. 47 Issue 2, pp259-279

J Jaussaud and J Schaper, ‘European and Japanese Multinational Companies in China: Organization and Control of Subsidiaries’, Journal of Asian Business & Management, Sep 2007, Vol. 6, Issue 3, pp.223-245

A Cross and S A Horn, Japanese Multinationals in China 2007 (Routledge, 2007)

B Andreosso-O'Callaghan, J-P Bassino, S Dzever, J Jaussaud, The Economic Relations Between Asia and Europe : Organization, Control and Technology (Oxford Chandos, 2007)

J.C.Ableggen, 21st Century Japanese Management – New System, Lasting Values (2006)

* S J Kewley, Toyota’s French Connection: Trends in Japanese European Automotive Relations (RIIA 2002)

K W Radtke and M Wiesebron, eds, Competing for Integrations: Japan, Europe, Latin America, and Their Strategic Partners (2002).

T.Malcom, ed., The Internationalization of Japanese Business: European and Japanese Perspectives (Westview Press, 1987).

J E Hunter and S Sugiyama, eds, Japan’s International Relations 1600-2000, vol4, Economic and Business Relations (2002)

T D Keeley, International Human Resource Management in Japanese Firms: their greatest challenge (2001)

* P W Beamish, A Delios, and S Makins, Japanese Subsidiaries in the New Global Economy (2001)

*T Kono and S Clegg, Trends in Japanese Management: Continuing Strengths, Current Problems and Changing Priorities (2001). Useful survey and cases on changes in Japanese management.

V Franicevic and H Kimura, eds, Globalization, Democratization and Development: European and Japanese Views of Change in South East Europe (Zagreb 2003)

* R Busser and Y Sado, eds, Production Networks in Asia and Europe: skill formation and technology transfer in the auto industry (2003)

S Jacoby, The Embedded Corporation (2004)

P. Wickens, The Road to Nissan: Flexibility, Quality and Teamwork (Macmillan, 1987).

S. Thomsen and P. Nicolaides, The Evolution of Japanese Direct Investment in Europe (Harvester Wheatsheaf, 1991).

Yoshitomi Masaru et. al., Japanese Direct Investment in Europe: Motives, Impact and Policy Implication (Aldershot: Avebury, n.d.).

N. Oliver and B. Wilkinson, The Japanization of British Industry (Oxford, 1992).

Jonathan Morris, Working for the Japanese: The Economic and Social consequences of Japanese Investment in Wales (Athlone Press, 1993).

*T. Elger and C. Smith (eds), Global Japanization ?: The Transnational Restructuring of the Labour Process (Routledge, 1994). Implications and meanings of ‘Japanization’ and globalization.

* M. Mason and D. Encarnation, Does Ownership Matter? : Japanese Multinationals in Europe (Oxford University Press, 1994).

Dayanand Arora, Japanese Financial Institutions in Europe: Securities Companies (Elsevier, 1995)

Jonathan Klavens, Foreign Direct Investment in Central and Eastern Europe: A Survey (World Bank, 1995).

* F. Sachwald, ed., Japanese Firms in Europe (Harwood Academic Publishers, 1995).

* J. Darby, ed., Japan and the European Periphery (Macmillan, 1996).

*Mark Mason, Europe and the Japanese Challenge: The Regulation of Multinationals in Comparative Perspective (Oxford University Press, 1997). Thorough survey of Japanese MNEs in Europe.

UNCTAD, Sharing Asia’s Dynamism: Asian Direct Investment in the European Union (United Nations Publications, 1997).

Harukiyo Hasegawa and Glenn D. Hook, Japanese Business Management: Restructuring for Low Growth and Globalization (Routledge, 1998).

Carl Aaron, The Political Economy of Japanese Foreign Direct Investment in the UK and the US: Multinationals, Subnational Regions and the Investment Location (Macmillan, 1999).

Roger Farrel, A Yen for Real Estate: Japanese Real Estate Investment Abroad: From Boom to Bust (Edward Elgar, 2000)

*G.Jones, The Evolution of International Business (1995). Valuable survey of development of MNEs generally.

*M.Mason, Japanese Multinationals in the Changing Context of Globalisation (1994). Thorough survey of Japanese industry cases.

S.Young, Europe and the Multinationals (1992)

J.L.Muccielli, Multinationals and Europe: Strategies for the Future (1992)

J.H.Dunning, Multinationals and the European Community (1988)

*J.H.Dunning, Multinational Enterprises and the Global Economy (1995). Classic, unrivalled analysis of MNEs. Updated 2008.

E.Abe and T.Gourvish, Japanese Success? British Failur?e (1997)

*T.Yuzawa, ed., Japanese Business Success (1994). Useful case studies.

R.Strange, Japanese Manufacturing Investment in Europe (Routledge, 1993)

W.Carl Kester, Japanese Takeovers: the Global Contest for Corporate Control (1992)

T.Kono, Strategic Management in Japanese Companies (1992)

J.Ableggen and R.Stalk, Kaisha (1985)

M.Trevor, Japan’s Reluctant Multinationals: Japanese Management at Home and Abroad (1983)

Y.C.Kim, Japanese Inward Investment in UK Car Manufacturing (1999)

M.Trevor, International Business and the Management of Change: European-Asian Perspectives (1991)

J.Ritchie, East Asian Direct Investment in Britain (1999)

F.Chesnais, European Internationals and Global Corporate Strategy (2000)

J.Slater, Business Relationships with East Asia: the European Experience (1997)

F.Burton, International Business and Europe in Transition (1996)

M E Porter, Can Japan Compete? (2000)

K Yamamura, The End of Diversity? Prospects for German and Japanese Capitalism (2003)

W Pascha, Systematic Changes in the German and Japanese Economies (2004)

K Tsai and S Pekkanen, Japan and China in the World Political Economy (2005)

*W. Mark Fruin, The Japanese Enterprise System (1993). Classic study of the reasons why Japanese firms developed unique characteristics.

E. Abe and R. Fitzgerald, eds., The Origins of Japanese Industrial Power (1995)

R Fitzgerald, ed., The Competitive Advantages of Far Eastern Business (1994)

R Fitzgerald, ed, The State and Economic Development (1995)

R Fitzgerald and E Abe, ed., Development of Corporate Governance in Britain and Japan (2004)

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D J Encarnation, Japanese Multinationals in Asia (1999)

* A Girond, et. al., Multinationals in Asia (2005)

*A M Rugman and T L Brewer, eds, Oxford Handbook of International Business (2001). Invaluable place to begin study of MNEs and Japanese FDI.

J Crystal, Unwanted Company: foreign investment in American industries (2003)

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G Thompson, Economic Dynamism in the Asia Pacific (1998)

W M Fruin, Knowledge Works (1997)

*G Jones, Multinationals and Global Capitalism (2005). Reworked and useful survey of development of MNEs.

*A M Rugman, The Regional Multinationals (2005). Empirical analysis and challenge to notion of globalization.

P.Dicken, Global Shift: the Internationalisation of Economic Activity (2003)

*H Horaguchi and K Shimokawa, eds, Japanese Foreign Direct Investment and the East Asian Industrial System (2002). Useful business functional surveys.

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R Strange, The EU and ASEAN (2000)

N Campbell and F Burton, Japanese Multinationals (1994)

D F Simon, Corporate Strategies in the Pacific Rim (1995)

*A M Rugman and R M Hodgetts, International Business (2003). Highly useful textbook, containing information on Japan and Japanese MNEs.

A.H. Amsden and T. Hikino, `Staying behind, stumbling back, sneaking up, soaring ahead: late industrialization in historical perspective', in W.J. Baumol etal., Convergence of Productivity: Cross-national Studies and Historical Evidence (1994)

* A H Amsden, The Rise of the Rest: Challenges to the West from Late Industrialising Economies (2001) 338.091724 AMS

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* J-S. Shin, The Economics of the Latecomers (Routledge, 1996) [SL 338.06 SHI]

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G G Hamilton and R C Feenstra, Competing Business Networks in East Asia (2006)

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* B. Wilkinson, Labour and Industry in the Asia-Pacific (1994) [SL 382.091724 WIL]

C Rowley and J Benson, eds, Human Resource Management in the Asia Pacific (1998) [338.753 HUM]

P S Budhwar, Managing Human Resources in the Asia Pacific (2004)

C Rowley, ed., Human Resource Management in the Asia Pacific Region: Convergence Questioned (1997), 338.753 HUM

R. Robison and D.S.G. Goodman (eds) The New Rich in Asia: Mobile Phones, McDonald’s and Middle-Class Revolution. London, Routledge. 301.4412 NEW

*Lasserre, P. and Schütte, H. (1999) Strategies for Asia Pacific: Beyond the Crisis. London, Macmillan. 338.88 LAS. Useful case studies on international business in East Asia.

Thompson, G. (ed) (1998) Economic Dynamism in the Asia-Pacific. London: Routledge. Chapters 2 and 11. 338.959 ECO

Fields, Karl J. (1995) Enterprise and the State in Korea and Taiwan. London, Cornell University Press.

Hoesel, Roger van (1999) New Multinational Enterprises from Korea and Taiwan: Beyond Export-led Growth. London, Routledge.

* Ungson, Gerardo R., Steers, Richard M., and Seung-Ho Park (1997) Korean Enterprise: The Quest for Globalization. Boston, Harvard Business School Press.

Orrù, M., Biggart, N. and Hamilton, G. (1997) The Economic Organization of East Asian Capitalism. London, Sage. 338.095 ORR

S H Kwon and M O’Donnell, The Chaebol and Labour in Korea: development of management strategy at Hyundai (2001)

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* S J Chang, Financial Crisis and the Transformation of Korean Business Groups (2003)

* E M Graham, Reforming Korea’s Industrial Conglomerates (2003)

D Kirk, Korean Crisis (2000)

S H Jwa and I K Lee, Competition and Corporate Governance in Korea (2004)

C Horne, The Korean Economy (2004)

* Y Zhang, China’s Emerging Global Businesses (2003)

* J Cherry, Korean Multinationals in Europe (2000)

E T Gomez and H H M Hsiao, Chinese Enterprise, Transnationalism, and Identity (2004)

M Webber, M Wang, and Z Ying, China’s Transition to a Global Economy (2001)

* F Sachwald, Going Multinational: the Korean experience of direct investment (2001)

* P Athukoraige, Multinational Enterprises in Asia Development (2007)

* J K Kim and P B Ruffini, Corporate Strategies in the Age of Regional Integration (2007)

* Cai, K. G. (1999). Outward foreign direct investment: A novel dimension of China’s integration into the regional and global economy. The China Quarterly, 160: 856–880.

* Child, J., & Rodrigues, S. B. (2005). The internationalization of Chinese firms: A case for theoretical extension. Management and Organization Review, 1(3): 381–410.

* Deng, P. (2004). Outward investment by Chinese MNEs: Motivations and implications. Business Horizons, 47: 8–16.

* Deng, P. (2007). Investing for strategic resources and its rationale: The case of outward FDI from Chinese companies. Business Horizons, 50(1): 71–81.

* Mathews, J. A. (2006). Dragon multinationals: New players in 21st century globalization. Asian Pacific Journal of Management, 23: 5–27.

* Rui, H., & Yip, G.S., Foreign acquisitions by Chinese firms: A strategic intent perspective, Journal of World Business (2008)

* Nolan, P. (2001). China and the global economy. Basingstoke, UK: Palgrave.

Young, S., Huang, C. H., & McDermott, M. (1996). Internationalization and Chinese multinational enterprises. Management International Review, 36(4): 295–314.

* Zeng, M., & Williamson, P. J. (2003, October). The hidden dragon. Harvard Business Review, pp. 92–9.

* H Liu and K Li, Strategic Implications of Emerging Chinese Multinationals: Case of Haier. European Management Journal, 2002

* Gang, Y. 1992. Chinese transnational corporations. Transnational corporations, 1(2): 125-133.

* Child, J. and Tse, D.K. 2001. China's transition and its implications for international business. Journal of International Business Studies, 32(1): 5-21.

* Zhan, J. X. 1995. Transnationalization and outward investment: the case of Chinese firms. Transnational corporations, 4(3): 67-100.