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How stickiness to low-end markets leads to innovation: Co-evolution between Brother Industry Ltd. and Brother International Corp. USA, 1908–2000

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  • Yuki Nakajima
  • Motohiro Nakauchi

Abstract

This article analyses the history of Brother Industry Ltd. (BIL) to propose a new take on the conventional wisdom surrounding the internationalisation of Japanese companies – a common understanding that the key factor behind Japanese firms’ successes in establishing an international competitive edge was how the companies’ headquarters in Japan implemented a powerful combination of control and integration over their international distributors and moved up from low-end markets to high-end markets through unyielding technological development. By exploring the case of BIL, we locate a different path to growth where highly autonomous local subsidiaries sought to remain in low-end markets and thereby assisted their companies to develop into innovative global companies.

Suggested Citation

  • Yuki Nakajima & Motohiro Nakauchi, 2024. "How stickiness to low-end markets leads to innovation: Co-evolution between Brother Industry Ltd. and Brother International Corp. USA, 1908–2000," Business History, Taylor & Francis Journals, vol. 66(5), pages 1126-1150, July.
    • Handle: RePEc:taf:bushst:v:66:y:2024:i:5:p:1126-1150
    DOI: 10.1080/00076791.2022.2087633
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