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Is there an East Asian model of MNC internationalization? A comparative analysis of Japanese and Korean firms

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  • Martin Hemmert
  • Keith Jackson

Abstract

Research on the internationalization of multinational corporations (MNCs) is mostly built on studies of North American and European firms. East Asian MNCs have been studied less, and commonly with reference to theories developed in Western countries. In this paper, we query the validity of these ‘Western’ internationalization models for East Asian firms through comparative case studies of representative Japanese and South Korean MNCs’ expansion into China. We find that the internationalization processes of leading East Asian MNCs match the predictions made by Western theories only partially. Furthermore, we find considerable differences between the internationalization of Japanese and South Korean firms, indicating both that East Asian MNCs follow diverse patterns of internationalization and that established Western models of internationalization evince limitations or weaknesses when applied to East Asian firms. Overall, the findings of this exploratory study illustrate the need for further, in-depth studies on the internationalization of East Asian MNCs which may result in the extensions of existing theories or even new theoretical frameworks.

Suggested Citation

  • Martin Hemmert & Keith Jackson, 2016. "Is there an East Asian model of MNC internationalization? A comparative analysis of Japanese and Korean firms," Asia Pacific Business Review, Taylor & Francis Journals, vol. 22(4), pages 567-594, October.
    • Handle: RePEc:taf:apbizr:v:22:y:2016:i:4:p:567-594
    DOI: 10.1080/13602381.2016.1168617
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    1. Ouchi, William, 1981. "Theory Z: How American business can meet the Japanese challenge," Business Horizons, Elsevier, vol. 24(6), pages 82-83.
    2. Grazia Ietto-Gillies, 2012. "Transnational Corporations and International Production," Books, Edward Elgar Publishing, number 14379.
    3. Sebastien Lechevalier, 2014. "The great transformation of Japanese capitalism," Post-Print hal-03122741, HAL.
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    Cited by:

    1. Martin Hemmert, 2020. "Does Korean-style management have a future?," Asian Business & Management, Palgrave Macmillan, vol. 19(2), pages 147-170, April.
    2. Olawoyin Gregory Adedigba & Runhui Lin & Nizam Ud Din, 2020. "The degree of internationalization of Chinese Multinationals along the belt and road initiative countries," PLOS ONE, Public Library of Science, vol. 15(7), pages 1-22, July.
    3. Shigeru Matsumoto & Keith Jackson, 2017. "Integration and Synergy Generation in Cross Border Acquisitions: A Case Study of Business Failure and Success ‘Made in Japan’," International Business Research, Canadian Center of Science and Education, vol. 10(9), pages 122-140, September.

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