Japan and Japanese firms: historical and modern lessons for international business and economic development

The obsession in both the popular and academic press about Japan, Japanese firms and their management practices lasted until the 1990s, after which there has been an inexplicable absence of curiosity. I argue here that there is still much to learn, not only from their contemporary activity, but from their historical actions. Less developed countries, in particular, can benefit from a careful study of the Meiji era, during which Japan built up the structure, institutions and organizations that underlay its economic success for much of the 20th century, and was a blueprint for many Asian success stories. The Meiji period was crucial in building up of Japan’s location advantages, and the rapidity of the reforms in this period underlined much of its subsequent growth. I also argue that despite Japan’s economic stagnation since the 1990s, its firms have not been stationary. There has been considerable evolution in the management and structure of Japanese firms and its innovation system. Such developments represent a useful preview of challenges ahead for the more advanced emerging economies such as China and India, as well as newer advanced economies, such as Korea

The role of developing country multinationals in the acquisition of industrial technology in Nigeria : a pilot study

The growing presence of multinationals from developing countries (DC MNE''s) has drawn some criticism regarding their ability to transfer technology. This paper seeks to examine whether, in the case of Nigeria, such MNE''s utilise similar technology to that of Nigerian firms, and the implications for government policy on achieving technology transfer. Although tentative, the findings suggest that DC MNE''s in Nigeria do not tend to acquire technology primarily from their home country, and suggests that although tangible technology that is transferred is similar to that directly acquired by domestic firms, there is nonetheless a difference in the nature in the intangible technology between the two groups.economic development an growth ;

Choosing between internal and non-internal R&D activities: some technological and economic factors

This paper evaluates some of the technological and economic factors that underlie the choice between in-house R&D, R&D alliances and outsourcing. We recount the reasons for the growth in non-internal activities, and explain why these are not as prevalent for R&D as other value-adding activities, and highlight that outsourcing is most often undertaken where multiple, substitutable sources are available. We then develop two frameworks. First, a static framework is developed, which evaluates the choice of mode based on a firm''s distribution of competencies, and their strategic importance. Second, a dynamic framework is developed that demonstrates how the static framework differs depending on whether the firm is engaged in pre-paradigmatic, paradigmatic or post-paradigmatic sectors. We also consider the effect of new technologies being introduced to a firm''s portfolio of competencies.industrial organization ;

Explaining the growth of strategic R&D alliances by European firms

This paper first develops an explanation for the increasing popularity of strategic technology alliances, both globally, and by EU firms. It then evaluates, using data over the period 1980-1994, how private, non-subsidised cooperative agreements in R&D by EU firms has evolved, paying particular attention to the growth of intra-EU activity relative to extra-EU agreements (i.e., EU-US and EU-Japan alliances). Essentially, EU firms'' partnering habits reflect the need to seek strong partners regardless of nationality within a given industry, although intra-EU partnering enjoyed a brief popularity during the latter half of the 1980s.international economics and trade ;

The implications of growing cross-border interdependence for systems of innovation

Taking a multi-disciplinary approach, this paper highlights the importance of takinginto account the role of non-domestic elements in an innovation system, which is traditionallystudied by using the nation-state as the unit of analysis. Learning and knowledge accumulationis often assisted by inward and outward FDI, although this is sometimes overlooked in thestudy of innovation systems. Multi-level, multi-country interactions within a modernknowledge based economy means that firms are not always constrained by the limitations oftheir domestic resources. Nonetheless, there are factors that constrain and pre-determine theextent to which firms and locations can benefit from external knowledge sources, be theydomestic or foreign.economics of technology ;

Understanding absorptive capacities in an "innovation systems" context: consequences for economic and employment growth

This paper seeks to broaden our understanding of the concept underlying absorptive capacity at the macro–level, paying particular attention to the growth and development perspectives. We provide definitions of absorptive and technological capacity, external technology flows, productivity growth, employment creation and their interrelations. We then analyse the elements of absorptive capability, focusing on the nature of the relationship within a systems view of an economy, focusing primarily on the role of firm and non-firm actors and the institutions that connect them, both within and across borders. We also undertake to explain how the nature of absorptive capacity changes with stages of economic development, and the importance of the different aspects of absorptive capability at different stages. The relationship is not a linear one: the benefits that accrue from marginal increases in absorptive capability change over time. Finally, we provide a tentative and preliminary conceptual argument of how the different stages of absorptive capacity are related to productivity growth, economic growth and employment creation.economics of technology ;

Globalisation, EU expansion and consequences for MNE location

Many of the EU accession countries are confident that membership will result in substantially increased inward foreign direct investment (FDI). At the same time, other peripheral EU members (such as Spain and Portugal) are concerned that FDI will be displaced to these new countries. I postulate that the new members cannot expect the same increased FDI flows that resulted to earlier EU entrants. Both groups of countries cannot base their industrial development strategy on passive reliance on such flows. Reliance on low costs and other ''generic'' advantages such as basic infrastructure is myopic in a globalised world. Benefiting from FDI requires a comprehensive strategy to build up domestic absorptive capacity and upgrading of the quality of their location advantages, since they are faced with increased competition for FDI not just from other European countries but also from other parts of the world, most notably Asia.international economics and trade ;

Keeping the Eclectic Paradigm Simple: A Brief Commentary and Implications for Ownership Advantages

The eclectic paradigm as developed by Dunning evolved over time, responding to changes in the way international business has been conducted as well as to link it with other related academic disciplines. I argue that if the paradigm continues to try and be a 'big tent' and a de facto theory of the firm that internalises every MNE-related phenomena, it will be in danger of becoming a tautology without a 'gatekeeper'. Continual expansion to address new lacunae begins to have decreasing returns, either because the gatekeeper cannot expect to have the specialised knowledge to meet each market need equally well, or because the growing number of extensions makes the final product unwieldy. I propose a return to a basic eclectic paradigm ('EP-lite') consisting essentially of the OLI framework. This can then be complemented by other frameworks, theories and concepts as needed, rather than the continuous expansion to internalise their use. In a similar vein, increasing the number of sub-categories of ownership advantages does not in itself provide greater clarity. Besides, the 'correct' definition of what constitute O advantages is relative to the purpose for which it is being used.Eclectic paradigm, ownership advantages, industrial development

Multinational Firms, Regional Integration and Globalising Markets: Implications for Developing Countries

It is axiomatic that the potential of FDI to act as a catalyst for economic development varies by its motivation, and the competence level and scope of foreign-owned affiliates. This chapter seeks to examine the effect of regional integration (RI) on MNE strategies while acknowledging other globalisation-related developments. We examine MNE strategies in developing countries in four scenarios; (1) in a non-RI, pre-liberalised environment; (2) with RI in a pre-liberalised environment (3) in a non-RI, post-liberalisation scenario, (4) RI in a post-liberalisation scenario. We also distinguish between least developed countries (LDCs), and intermediate developing countries, within North-South and South-South RI. Liberalisation and a shift in policy orientation have had a greater affect on MNE strategies than integration. Globalisation of MNE activity and liberalisation has led to a downgrading of MNE activity in most LDCs. Much of the gains in FDI flows have been a result of redistribution, associated with privatisation. Countries with a threshold level of domestic capability and more efficient institutions have benefited from increases in the quality of FDI. RI schemes have reinforced these trends, benefiting those countries that have a viable domestic sector, and have created the appropriate multilateral institutions to exploit cross-border efficiencies. In general, South-South RI in a post-liberalised world has had limited benefits for LDCs relative to intermediate developing countries. RI schemes need to be seen as an opportunity to respond gradually to globalisation in a controlled and stepwise- manner, and not as an alternative to multilateralism.economics of technology ;

Strategic technology alliances by European firms since 1980: questioning integration?

This paper evaluates the extent to which private, non-subsidised cooperative agreements in R&D by EU firms has evolved, paying particular attention to the extent to which economic integration may have influenced intra-EU activity relative to extra-EU agreements (i.e., EU-US and EU-Japan alliances) over the period 1980-1994. Essentially, EU firms'' partnering habits reflect the need to seek strong partners regardless of nationality within a given industry, although intra-EU partnering enjoyed a brief popularity during the latter half of the 1980s.research and development ;