Competition and Cooperation among Asian Enterprises in China
This paper preliminarily shows that the termination rate of Japan-Taiwan JVs in China is not high compared to average termination rate for overall Japanese investments in China. In terms of local access, JVs with Taiwanese companies improve local access for Japanese partners by making it easier (i) to access Taiwanese affiliates with a large economic presence in China, (ii) to smooth entry to the local market by utilizing distribution networks that Taiwanese parties possess in China, and (iii) to get local information from Taiwanese partners whose language and culture are similar to those of China. In addition, it is suggested that organizational costs are generally decreased because of the mutual trust built by the long history of collaboration between Japanese and Taiwanese partners. Finally, the theoretical implications and several remaining points are mentioned with reference to current developments in JVs between Japanese and Taiwanese companies in China.
Seven-Eleven Japan built up its China subsidiary almost wholly by itself, a policy that can be described as a managing-alone strategy. The paper argues that the differences in strategy stem fundamentally from differences in the two companies’ experience of international management and from the knowledge derived from that experience. FamilyMart has considerable experience of building up joint ventures in Asian countries and has accumulated resources in its Taiwan subsidiary. Seven-Eleven Japan has strong confidence in its business model because of its remarkable performance in Japan and its success in rehabilitating the chain in the United States. The paper also illustrates that the choices of strategy have been shaped by the companies’ interactions with two Taiwanese business groups, namely the Ting Hsin International Group and the President Group. Furthermore the evidence discovered by the research indicates that FamilyMart’s strategy enabled the company to build up its operations more quickly than the policy adopted by Seven Eleven Japan. Although Seven-Eleven Japan’s strategy is a more time-consuming way of setting up a CVS business, the approach offers a stronger possibility of establishing a more efficient and more transparent business model than do the approaches followed by the other CVS chains.
Surviving in the Middle: Embedded Learning and Managed Dependency among Taiwanese Automakers (213KB) / Lu-lin Cheng
Competing for Complementarity: Growth of Taiwanese Notebook PC Manufacturers as ODM Suppliers (188KB) / Momoko Kawakami