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Why Japanese multinationals failed in the Chinese mobile phone market: a comparative study of new product development in Japan and China

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  • T. Marukawa

Abstract

This industry case study examines the challenges experienced by Japanese MNEs as they transfer sources of competitive advantage to foreign markets. Despite holding certain technological advantages, Japanese mobile telephone manufacturers have performed poorly in the Chinese market. This is because the capabilities required differ between Japan and China: in Japan, handsets are sold as a part of a package that bundles together handsets and telephony services but in China they are sold as independent commodities. Japanese MNEs have the capability to develop sophisticated handsets according to the requirements of Japanese service operators, but such capability is not useful in China.

Suggested Citation

  • T. Marukawa, 2009. "Why Japanese multinationals failed in the Chinese mobile phone market: a comparative study of new product development in Japan and China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 15(3), pages 411-431, July.
    • Handle: RePEc:taf:apbizr:v:15:y:2009:i:3:p:411-431
    DOI: 10.1080/13602380802667387
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    Cited by:

    1. Shuo Liu & Dimitri Migrow, 2019. "Designing organizations in volatile markets," ECON - Working Papers 319, Department of Economics - University of Zurich.
    2. Efrat, Kalanit & Hughes, Paul & Nemkova, Ekaterina & Souchon, Anne L. & Sy-Changco, Joseph, 2018. "Leveraging of Dynamic export capabilities for competitive advantage and performance consequences: Evidence from China," Journal of Business Research, Elsevier, vol. 84(C), pages 114-124.

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