The strategies of Japanese firms in emerging markets: The case of the automobile industry in India

To inform understanding of the internationalisation of Japanese firms to emerging markets, this study assesses the expansion of the Japanese automobile industry to India along three key dimensions: (i) internationalisation strategy; (ii) corporate agglomeration; and (iii) marketing strategy. We find...

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Bibliographic Details
Published in:Asian business & management 2010-09, Vol.9 (3), p.341-378
Main Authors: Horn, Sierk A, Forsans, Nicolas, Cross, Adam R
Format: Article
Language:English
Subjects:
Asian Culture
Automobile industry
Business and Management
Case studies
Competitive advantage
Developing countries
Economic growth
Emerging markets
Foreign investment
Global economy
Globalization
India
Infrastructure
International Business
International finance
Internationalization
Investments
Joint ventures
LDCs
Liberalization
Localization
Market
Multinational corporations
Multinational enterprises
Original Article
Planning methods
Regulation
Strategic management
Studies
Tariffs
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Summary:To inform understanding of the internationalisation of Japanese firms to emerging markets, this study assesses the expansion of the Japanese automobile industry to India along three key dimensions: (i) internationalisation strategy; (ii) corporate agglomeration; and (iii) marketing strategy. We find that majority-owned joint ventures (JVs) and wholly owned subsidiaries are more frequently associated with more recent investment projects relative to minority JVs. We also observe four centres that have emerged on an industry level, suggesting that what constitutes an ‘agglomeration’ in emerging markets may involve a wider geographic area and more numerous business clusters than is typically the case for Japanese investment in other contexts. Finally, we note that Japanese firms have substantially extended their marketing repertoire in India.
ISSN:1472-4782
1476-9328
DOI:10.1057/abm.2010.20