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Strategic advantages of japanese electronics firms and the scale of their subsidiaries in the US and Canada

โœ Scribed by Benjamin Tan; Ilan Vertinsky

Publisher
Elsevier Science
Year
1995
Tongue
English
Weight
931 KB
Volume
4
Category
Article
ISSN
0969-5931

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โœฆ Synopsis

Using data of Japanese electronics firms that have foreign direct investment (FDI) in the United States and Canada, this study employed a causal modeling framework to test hypotheses regarding the influence of firms' strategic advantages on the scale of their foreign subsidiaries.

Our results showed that, in the United States, both strategic advantages and international management capabilities of parent firms influenced the scale of their subsidiaries. In Canada, only international management capabilities of parent firms directly influenced the scale of their subsidiaries. The paper concludes with a discussion of the policy and strategic implications of the results of the study.

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