Differential behaviour of the Japanese affiliates in the Indian automobile sector

Abstract

The main objective of this study is to analyse the differential behaviour of the Japanese affiliates compared with the affiliates of non-Japanese multinational enterprises (MNE) and unaffiliated Indian firms in the Indian automobile sector. Results from the step-wise discriminant analysis presented in this paper show that the conduct and performance of the Japanese affiliates differ significantly from those of the Western MNE affiliates and unaffiliated Indian firms with respect to the following variables: in-house R&D licensing of technology, import of capital goods and components, exports, advertisement expenditures, capital output ratio, profit margins, and employment policies.