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The Self-contained Localization Strategy: Case studies of Japanese firms

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Rising Asia and American Hegemony

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Abstract:

A huge number of middle-income groups are distributed in China and the Association of South East Asian Nations (ASEAN). In this context, global firms recognize the need for localization strategy. The practical upcoming challenge of global companies is to determine the best way to accomplish localization. This chapter presents the development of a self-contained localization system based on organizational capabilities and suggests the self-contained localization strategy through case studies of Japanese firms. The foreign subsidiaries with self-contained units have their own R&D, operations, marketing, service, and human resource functions. Therefore, the self-contained localization strategy allows the foreign subsidiary a large degree of autonomy in responding appropriately to local competitive conditions with locally responsive strategies. For Japanese firms that implement self-contained localization strategy, they allow a larger degree of autonomy and achieve a higher global market share of their products.

…Asian‐focused research allows researchers to extend and revise theories through the consideration of new contextual variables…by developing context‐specific conditions and operationalization of key constructs, which in turn allows researchers to develop new theories and constructs which are generalizable to research in other contexts. (Garry D. Bruton and Chung Ming Lau, 2008).

Note: This chapter content is initially published in “Park, YW. Hong, Paul, GC Shin, GC (2017). Self-Contained Localization Strategy: Case Studies of Japanese Firms. Perspectives on Global Development and Technology.” Vol. 16 No. 5, pp. 487–500

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Authors and Affiliations

  1. College of Business Innovation, University of Toledo, Toledo, OH, USA

    Prof. Paul Hong

  2. Faculty of Economics, Graduate School of Humanities and Social Sciences, Saitama University, Saitama, Japan

    Prof. Young Won Park

Authors
  1. Prof. Paul Hong
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  2. Prof. Young Won Park
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Correspondence to Paul Hong .

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Hong, P., Park, Y.W. (2020). The Self-contained Localization Strategy: Case studies of Japanese firms. In: Rising Asia and American Hegemony. Springer, Singapore. https://doi.org/10.1007/978-981-13-7635-1_8

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