Abstract
AbstractJapanese Foreign Direct Investment (FDI) in the European Union and its performance were analysed in this work. Three different FDI or entry modes used by Japanese companies to enter the European market were compared, and the presence of a relationship between the selected entry mode and the performance of the subsidiary was investigated. We found that more than half of the Japanese investments in Europe took the form of new ventures, approximately 40% were joint ventures and less than 6% were acquisitions. We found that no specific entry mode performed better than another.
Highlights
In this work, we study Japanese Foreign Direct Investment (FDI) in Europe and its performance
This paper aims to contribute to the existing literature by providing additional information about the association between the selected entry mode and the performance of Japanese direct investment in Europe
We considered three ownership-based entry modes: greenfield investments (FDI where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up), acquisitions of already existing companies and joint ventures with a European partner
Summary
We study Japanese Foreign Direct Investment (FDI) in Europe and its performance. Japan is the world third’s largest national economy. As a highly developed economy and major global trader and investor, Japan is an important partner for the EU (EC, 2012). Hunter Professor of International Business at the Ivey Business School at Western University, Canada He holds a PhD in Strategic Management from the Ivey Business School and a MBA from the Telfer School of Management at the University of Ottawa. His research issues include strategic alliances, international management and commercial diplomacy. He holds a PhD in Economic and Business Sciences from the Universitat de Barcelona. He has been a visiting professor at Ivey Business School
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