Market adaptation by foreign-owned subsidiary
Hybrid management system for innovation
DOI:
https://doi.org/10.51094/jxiv.829Keywords:
innovation, hybrid management system, foreign owned Japanese local company, social capitalAbstract
The aim of this paper is to examine the management systems of foreign-owned Japanese subsidiaries. When entering the Japanese market, foreign-owned companies need to acquire the social capital to become collaborators, but this requires a great deal of effort. This is because domestic rivals have already established relationships with such external actors. This paper examined the management system that foreign-owned Japanese subsidiaries have in place, how it functions, and how it acquires social capital. The research method is based on a organize and analysis of publicly available secondary source. The target of the research is Johnson & Johnson. By unraveling a case study of their business expansion into the Japanese market, I examined the conditions under which a hybrid U.S.-Japanese management system functions to generate innovation. As a result, foreign-owned Japanese subsidiaries produce innovations that are difficult to imitate by being equipped with a "hybrid-type management system" that mixes the parent company's management system with the practices of the Japanese market. In this process, I argued, they can acquire social capital. This suggests that the top management of the local subsidiary plays a role in generating innovation by managing the hybrid-type management system.
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Submitted: 2024-07-29 02:00:20 UTC
Published: 2024-07-30 10:05:44 UTC
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