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Strategic capabilities and the emergence of the global factory: Omron in China

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  • Robert Fitzgerald
  • Jiangfeng Lai

Abstract

Omron Shanghai provides a detailed case study of a multinational subsidiary's long-term evolution. The study assesses three streams of international business literature that emphasize the seemingly competing roles of parent firm strategy, national institutions or local management in the development of subsidiaries. It looks at each business function separately to reveal which capabilities were effectively transferred from Japan to China. In tracing Omron Shanghai's development from international joint venture into wholly owned enterprise and then global factory, it is the strategic intent of the parent multinational corporations that emerges as the consistent formative influence on management practices and capabilities.

Suggested Citation

  • Robert Fitzgerald & Jiangfeng Lai, 2015. "Strategic capabilities and the emergence of the global factory: Omron in China," Asia Pacific Business Review, Taylor & Francis Journals, vol. 21(3), pages 333-363, July.
  • Handle: RePEc:taf:apbizr:v:21:y:2015:i:3:p:333-363
    DOI: 10.1080/13602381.2015.1020647
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    References listed on IDEAS

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    3. Florian A. A. Becker-Ritterspach, 2009. "Hybridization of MNE Subsidiaries," Palgrave Macmillan Books, Palgrave Macmillan, number 978-0-230-23349-2, December.
    4. D. Eleanor Westney, 1993. "Institutionalization Theory and the Multinational Corporation," Palgrave Macmillan Books, in: Sumantra Ghoshal & D. Eleanor Westney (ed.), Organization Theory and the Multinational Corporation, chapter 3, pages 53-76, Palgrave Macmillan.
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