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Pre-clusterization in emerging markets: the Toyota group's entry process in China

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  • F. Hatani

Abstract

Drawing on network analysis and informing the internationalization process of Japanese firms, this study introduces an ad hoc entry strategy, termed ‘pre-clusterization’. Unlike conventional keiretsu firms, competitive suppliers in a well-integrated network can enter a new market and begin clustering in a location that the core firm targets before the full entry of the core firm. The process of pre-clusterization is illustrated using a case study of the Toyota Group in China. A number of testable propositions are presented. Findings reveal the importance of strategic collective actions when coping with intensive competition and uncertainty in emerging market contexts.

Suggested Citation

  • F. Hatani, 2009. "Pre-clusterization in emerging markets: the Toyota group's entry process in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 15(3), pages 369-387, July.
    • Handle: RePEc:taf:apbizr:v:15:y:2009:i:3:p:369-387
    DOI: 10.1080/13602380802667353
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    Cited by:

    1. Lee, Joong-Woo & Song, Hong Sun & Kwak, Jooyoung, 2014. "Internationalization of Korean banks during crises: The network view of learning and commitment," International Business Review, Elsevier, vol. 23(6), pages 1040-1048.
    2. Lee, Joong-Woo & Abosag, Ibrahim & Kwak, Jooyoung, 2012. "The role of networking and commitment in foreign market entry process: Multinational corporations in the Chinese automobile industry," International Business Review, Elsevier, vol. 21(1), pages 27-39.
    3. Hatani, Faith & McGaughey, Sara L., 2013. "Network cohesion in global expansion: An evolutionary view," Journal of World Business, Elsevier, vol. 48(4), pages 455-465.

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