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Strategic evolution within Japanese manufacturing plants in Europe: UK evidence

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  • Hood, Neil
  • Young, Stephen
  • Lal, David

Abstract

The paper explores the strategic intentions of Japanese companies in establishing manufacturing subsidiaries in Europe; examines the types of strategies which have been pursued within these subsidiaries and reviews their performance against established criteria. Within the context of related academic literature in this field, the paper reports on a survey of Japanese manufacturing plants operating within the UK, located in Scotland. The mission, strategy and operating characteristics of the sample plants are evaluated, as is the relationship between the strategic intentions of the parent and the criteria for performance evaluation at plant level. The findings in this area, and as regards competitive priorities for these types of plant, are found to be consistent with evidence elsewhere. Finally, the paper considers some policy implications for both Japanese companies and inward investment attraction agencies.

Suggested Citation

  • Hood, Neil & Young, Stephen & Lal, David, 1994. "Strategic evolution within Japanese manufacturing plants in Europe: UK evidence," International Business Review, Elsevier, vol. 3(2), pages 97-122, June.
    • Handle: RePEc:eee:iburev:v:3:y:1994:i:2:p:97-122
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    Citations

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    Cited by:

    1. Robert Pearce, 2001. "Multinationals and Industrialisation: The Bases of 'Inward Investment' Policy," International Journal of the Economics of Business, Taylor & Francis Journals, vol. 8(1), pages 51-73.
    2. Marina Papanastassiou & Robert Pearce & Antonello Zanfei, 2020. "Changing perspectives on the internationalization of R&D and innovation by multinational enterprises: A review of the literature," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(4), pages 623-664, June.
    3. Pearce, Robert & Papanastassiou, Marina, 1999. "Overseas R&D and the strategic evolution of MNEs: evidence from laboratories in the UK," Research Policy, Elsevier, vol. 28(1), pages 23-41, January.
    4. Ivarsson, Inge & Jonsson, Thommy, 2003. "Local technological competence and asset-seeking FDI: an empirical study of manufacturing and wholesale affiliates in Sweden," International Business Review, Elsevier, vol. 12(3), pages 369-386, June.
    5. Papanastassiou, Marina, 1999. "Technology and production strategies of multinational enterprise (MNE) subsidiaries in Europe," International Business Review, Elsevier, vol. 8(2), pages 213-232, April.
    6. Peter Strachan & David Lal, 2004. "Wind Energy Policy, Planning and Management Practice in the UK: Hot Air or a Gathering Storm?," Regional Studies, Taylor & Francis Journals, vol. 38(5), pages 549-569.
    7. Dörrenbächer, Christoph & Gammelgaard, Jens, 2006. "Subsidiary redefinition: Charter loss in a German-owned subsidiary in Hungary," Discussion Papers, Research Unit: Internationalization and Organization SP III 2006-201, WZB Berlin Social Science Center.
    8. Wolfgang Sofka & Christoph Grimpe & Fuad Hasanov & Reda Cherif, 2022. "Additionality or opportunism: Do host-country R&D subsidies impact innovation in foreign MNC subsidiaries?," Journal of International Business Policy, Palgrave Macmillan, vol. 5(3), pages 296-327, September.
    9. Dzikowska Marlena & Gorynia Marian, 2020. "Long-term evolution of the subsidiary’s role: a qualitative perspective on a subsidiary located in Poland," International Journal of Management and Economics, Warsaw School of Economics, Collegium of World Economy, vol. 56(1), pages 79-95, March.
    10. Neil Hood & James Taggart, 1999. "Subsidiary Development in German and Japanese Manufacturing Subsidiaries in the British Isles," Regional Studies, Taylor & Francis Journals, vol. 33(6), pages 513-528.
    11. Lee, Hyoungjin & Chung, Chris Changwha & Beamish, Paul W., 2019. "Configurational characteristics of mandate portfolios and their impact on foreign subsidiary survival," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    12. Dörrenbächer, Christoph & Gammelgaard, Jens, 2006. "Subsidiary role development: The effect of micro-political headquarters-subsidiary negotiations on the product, market and value-added scope of foreign-owned subsidiaries," Journal of International Management, Elsevier, vol. 12(3), pages 266-283, September.
    13. Larsen, Marcus M., 2016. "Failing to estimate the costs of offshoring: A study on process performance," International Business Review, Elsevier, vol. 25(1), pages 307-318.
    14. Mudambi, Ram, 1999. "MNE internal capital markets and subsidiary strategic independence," International Business Review, Elsevier, vol. 8(2), pages 197-211, April.
    15. Julia Manea & Robert Pearce, 2006. "MNEs’ strategies in Central and Eastern Europe: key elements of subsidiary behaviour," Management International Review, Springer, vol. 46(2), pages 235-255, March.
    16. Si Zhang & Shasha Zhao & Ioannis Bournakis & Robert Pearce & Marina Papanastassiou, 2018. "Subsidiary roles as determinants of subsidiary technology sourcing: empirical evidence from China," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 35(2), pages 623-648, August.
    17. Pearce, Robert, 1999. "The evolution of technology in multinational enterprises: the role of creative subsidiaries," International Business Review, Elsevier, vol. 8(2), pages 125-148, April.

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