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Context 1
... overall hypothetical relationships are described in Figure 1. To summarize what this figure tells, we hypothesize that the transfer of the Japanese way-of-business characterized by strong management control by Japanese headquarters is detrimental to the business situation in emerging markets, while a departure from the Japanese way indicated by the weak control by the headquarters improves it. ...
Context 2
... overall hypothetical relationships are described in Figure 1. To summarize what this figure tells, we hypothesize that the transfer of the Japanese way-of-business characterized by strong management control by Japanese headquarters is detrimental to the business situation in emerging markets, while a departure from the Japanese way indicated by the weak control by the headquarters improves it. ...

Citations

... Further, more research on business for non-Western cases is greatly needed (Rowley and Oh 2016), although international business (IB) studies lack Japanese MNEs and the Russian context (Chimenson et al. 2022;Li and Fleury 2020). Japanese MNEs demonstrate unique characteristics for being pioneers in manufacturing (Delios and Henisz 2000;Nakagawa et al. 2018), but they suffer as a result of their management practices, which require organizational decentralization, an acceptance of local culture, and the delegation of initiatives to local employees (Nakagawa et al. 2018). Simultaneously, the Russian market is a relatively unknown emerging context (Chimenson et al. 2022) despite the importance of its geographical proximity to Japan (Nihon Keizai Dantai Rengoukai (Keidanren) 2015). ...
... Further, more research on business for non-Western cases is greatly needed (Rowley and Oh 2016), although international business (IB) studies lack Japanese MNEs and the Russian context (Chimenson et al. 2022;Li and Fleury 2020). Japanese MNEs demonstrate unique characteristics for being pioneers in manufacturing (Delios and Henisz 2000;Nakagawa et al. 2018), but they suffer as a result of their management practices, which require organizational decentralization, an acceptance of local culture, and the delegation of initiatives to local employees (Nakagawa et al. 2018). Simultaneously, the Russian market is a relatively unknown emerging context (Chimenson et al. 2022) despite the importance of its geographical proximity to Japan (Nihon Keizai Dantai Rengoukai (Keidanren) 2015). ...
Article
This study investigates the mechanisms that transform the liability of outsidership into assets of outsidership. Debates on transforming the liability of foreignness into assets of foreignness have been emerging, but transforming the liability of outsidership into assets of outsidership remains unclear. Drawing on organizational learning perspectives, we provide a comparative study of Japanese automotive subsidiaries in Russia. We suggest that advanced economy multinational enterprises in emerging markets benefit from local networks with a local partner but not from non-experience-based firm-specific advantages. Our study contributes to current debates in the literature by presenting the novel concept of ‘assets of outsidership’ and discussing the mechanisms of this transformation.
... The ineffectiveness of human resources development programs is to blame for the problems. Similarly, Nakagawa, Nakagawa, Fukuchi, Sasaki, and Tada (2018) suggested that while Japanese companies help in developing the hots countries' competitiveness in manufacturing, their performances were below expectation. One of the main causes for the phenomenon is related to the Japanese international management style, in which a similar management style is adopted in the host-country subsidiaries as it is adopted in the headquarter (Buckley, 2009). ...
... As pointed out by Huy, Vu, Hoang, and Nguyen (2020), the Vietnamese labor market is competitive, firms who wish to implement selective hiring may need to couple it with a performance-based system. Previous works have suggested that the traditional ways of doing business in Japanese organizations make it difficult for business expansion to non-Japanese clients due to a lack of appropriate skills among employees (Nakagawa et al., 2018). Furthermore, the seniority-based human resource management system creates a barrier for improving employees' productivity. ...
Article
Full-text available
Background and purpose : Managing human resource in foreign subsidiaries of Multinational Companies (MNCs) has been a challenging task due to the cultural diversity. High Performance Work System (HPWS) has been adopted by headquarters of MNCs in their subsidiaries as a form of control. The current research aims to explore the adoption and implementation of HPWS in subsidiaries of Japanese MNCs in Vietnam. Design/Methodology/Approach : A qualitative research design was conducted with data collected from semi-structured in-depth interviews with 33 managers working in 11 subsidiaries of Japanese MNC in Vietnam. Content analysis was used to analyze the data. Results: The results suggested that although HPWS was not fully implemented in these establishments, ability enhancing, motivation enhancing and opportunity enhancing bundle of HPWS were adopted to a varying extent. In addition, HPWS was adopted as a reactive response rather than a strategic choice. Finally, cost-benefit consideration may provide explanation for the non-systematic implementation of HPWS in affiliations of Japanese MNCs in Vietnam. Conclusion: The research provides some evidences to support the best-fit approach to HPWS adoption and implementation. Although HPWS has the potential to improve organizational performance, it must be internally aligned with the context of the organization.
... Japan has the most modern and innovative science and technology in the world in the Industry revolution 4.0, so it has always had a profound influence on the aspects of science and art of corporate governance through real estate models (Just in Time -JIT), Continuous Improvement (Kaizen), Total Quality Management, the quintessence of management in general, and Japanese corporate culture today is the global real reference sources (Kippenberger, 2002;Nakagawa et al., 2018). Kippenberger (2002) says that recognizing Japanese style and spirit, Japanese corporate cultural values were popularized worldwide through the "Seven Spirits of Matsushita" (Seven Spirits of Matsushita) model sated by Konosuke Matsushita in 1933. ...
... Chinese Chen et al. (2000), Zhang (2007), Gadner et al. (2015), Boontanapibul (2010) Traditional culture is the foundation of corporate culture, the corporate culture acquires new values on the one hand, but at the same time the corporate culture must follow value system of traditional culture. Singapore Low (2009), Tan (2015, Ortmann & Thompson (2016) Japan Kippenberger (2002), Peng (2009), Noriko et al (2010, Kegel & College (2016), Kushida (2017), Nakagawa et al. (2018) A harmonious combination of East and West based on family cultural identity and national culture is the key to success in building corporate culture, that towards people, people-centered and for human development. Korea Rhyu (2005), Hong and Geon-Cheol (2008), Choong and Jennifer (2014), Gadner et al. (2015) ...
Article
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In the situation of globally connected digital economy, changes in organizational structure and smart corporate governance are placing the entrepreneurial structures in the face of unprecedented decisions on building and developing corporate culture. By the method of literature review, desk review on the basis of secondary data is a typical study case on the cultural characteristics of startups in the United States of America (USA), China, Korea, Japan, Singapore and European Union. Based on the experiences from developed countries, some recommendations has been proposed for small business founders in Vietnam. It is expected to contribute an additional perspective on digital business in the era of globalization.
... In that study, cultural openness was found to play an important role in encouraging knowledge sharing between employees. Cultural openness also helps to reduce the communication gap, which is necessary for changing Japanese management style and ensuring the success of Japanese multinationals as in previous study (Nakagawa et al., 2018). ...
Article
Full-text available
Knowledge transfer effectiveness is considered one of the most important factors for ensuring the success of any enterprise, especially for multinational enterprises. However, in the case of Japan, the effectiveness of knowledge transfer between Japanese managers and foreign employees is not high. This limited effectiveness is understood as linked to the cultural distance between Japanese managers and foreign employees. The main goal of this study is to explore the impact of organizational culture on knowledge transfer in Japanese enterprises. Quantitative survey research was conducted with 365 respondents, who are Vietnamese labourers working in Japan. Analysis showed that two factors had a positive impact on the effectiveness of knowledge transfer: cultural openness and managers' communication ability. The study draws on these results to make recommend improvements in the knowledge transfer process between Japanese managers and Vietnamese employees.
... H4 (-): The barrier in learning style has a negative impact on the knowledge transferring of FDI enterprises.Cultural openness: The openness in organizational culture allows people in the different culture to interact with each other, and to learn from each other. The cultural openness of a manager could improve necessary skills and learn new methods of communication in the context of multinational companies(Griffith et al., 2001;Nakagawa et al., 2018). So, the cultural openness of the manager could have a positive impact on the knowledge flow of a multicultural environment. ...
Article
Full-text available
Objective of the study: Knowledge transferring through Foreign Direct Investment (FDI) enterprises is a strategic policy for the economic development of many countries. However, in the case of Vietnam, the effectiveness of knowledge transfer in FDI enterprises is not clear, especially with the impact of cultural distance between foreign investors and local employees. The main goal of this study is to explore the impact of organizational culture on knowledge transferring in FDI enterprises in Vietnam.Methodology/approach: Based on the original model of Parissa (2003), a research model has been proposed, in which the organizational cultural factors include cultural background, language ability, perceived cultural distance, learning style, and cultural openness. Quantitative research conducted through surveys with 109 respondents, who are working in FDI businesses in Ho Chi Minh City, Vietnam.Originality/Relevance: This research focuses on the direct impact of cultural factors on knowledge transfer at individual level between foreign managers and local employees in Vietnam.Main results: Analytical results showed that three factors had a significant impact on the effectiveness of knowledge transfer, including Cultural openness, Language ability of foreign managers, and Communication distance. Theoretical/methodological contributions: The study helps to test the measurement scales and contributes an empirical study in this field.Social/management contributions: From these results, some managerial suggestions were made to support knowledge transferring between foreign managers and Vietnamese employees.
... These days, Japanese multinational companies have accelerated their entry into and capture of emerging markets. Japanese companies had been pioneers in leveraging emerging countries advantages in manufacturing, they have suffered from poor market success in emerging countries [1]. ...
... The ineffectiveness of human resources development programs is to blame for the problems. Similarly, Nakagawa et al. (2018) suggested that while Japanese companies help in developing the hots countries' competitiveness in manufacturing, their performances were below expectation. One of the main causes for the phenomenon is related to the Japanese international management style, in which a similar management style is adopted in the host-country subsidiaries as it is adopted in the headquarter (Buckley, 2009). ...
... Previous research has suggested that entrepreneurship activities within Japanese organizations mainly rely on employee's loyalty and primarily focused on problem-solving, which is due in part to the Japanese culture of high uncertainty avoidance (Hirasaka, Kusaka and Brogan, 2021). In addition, Nakagawa et al. (2018) found that the application of the Japanese management style in emerging markets reduces affiliations' performance and proposed a breakaway from the traditional Japanese way. In the context of Vietnam, there are research evidence that Vietnamese employees do not prefer Japanese human resource management practices, transferred from their headquarters (Vo and Stanton, 2011). ...
... The business model based on the Keiretsu system was deemed unsuitable when looking for other clients due to a lack of appropriate skills. This has also been shown in previous works (Nakagawa et al., 2018). The seniority-based human resource management system still exists and creates barriers for employees to engage in IPB. ...
Conference Paper
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This qualitative research aims to explore the relationship between human resource management (HRM) practices and individual intrapreneurial behaviors of employees working in Vietnamese subsidiaries of Japanese Multinational Companies (MNCs). Data were collected from multiple in-depth interviews with Vietnamese managers in these establishments. Content analysis reveals significant discrepancies between corporate entrepreneurship direction and individual intrapreneurial behaviors. Human resource management practices appear as a significant barrier to intrapreneurship activities performed by the individual employees. The reviews also suggest that an innovative HRM system is necessary to promote employees’ intrapreneurial behaviors. Limitations and several implications have been discussed.
Article
Full-text available
The expansion of Japanese parent companies worldwide has forced them to carry the organizational culture that the Japanese founders had held onto their overseas subsidiaries. The main purpose of study is examined organizational culture, employee job satisfaction, and employee performance of Japanese PMA companies in Indonesia on employee retention. Eight Japanese companies were used as the sample, where 33 Japanese employees and 222 Indonesian employees were respondents. Theory Z is used to discuss organizational culture. The questionnaire was made in Indonesian, English, and Japanese. The research model uses a tiered structure model, while to test the proposed hypothesis, the SEM Lisrel 8.8 analysis technique is used. The main finding is the organizational culture of Japanese companies in Indonesia strongly influences job satisfaction, employee performance, and employee retention. Applying Japanese corporate culture shows that Japanese and Indonesian employees understand the company's core values. Employee performance can be realized by employees being able to understand the cultural values of the organization.
Article
That behavioral change is a prime outcome of planned quality change has been suggested for long, but little empirical evidence was available about how organizational factors affect the relationship. For a long time, the operations management literature has been dominated by the view that operations change-intervention is self-contained without considering the fit with the organizational environment. We contribute to this research line by arguing that change intervention's success is contingent upon organizational factors' status. Specifically, this study sheds light on how the relationship between 5S, a popular workplace change-intervention and its behavioral outcome is influenced by three organizational factors: perceived organization support (POS), perceived supervisory support (PSS), and management nationality. The result supports the hypothesis that the causal relationship between 5S intervention and employees' behavior is strengthened in the presence of POS and PSS. By assessing the measurement invariance between the Chinese operators of a Japanese-managed subsidiary and a Chinese-managed company, we find that the two operator groups shared the same conceptual framework of 5S but differed in their perceived implementation rigor. The operators of the Japanese-managed company implemented 5S intervention and performed self-discipline with a higher latent means level, indicating a greater 5S intensity and integration in the company. The result supports the hypothesis that management nationality matters when implementing workplace management intervention.