Small and Medium-Sized Japanese Joint Venturtes in Korea

Abstract

Professor Jinjoo Lee is professor of management science at the Korea Advanced Institute of Science and Technology (KAIST); Young-suk Hyun is currently an assistant professor of business administration at the HanNam University, Taejon, few studies have undertaken analyses of the characteristics of Japanese foreign direct investment in developing countries. The purpose of this paper is to compare the differences of behaviour and performance between small and medium-sized indigenous firms (IFs) and Japanses joint ventures (JJVs) operating in Korea. The results of bivariate analyses of behavioural differences between the two groups show that IFs exhibit more effort in technology assimilation and also show a greater interest by top management in innovation compared with JJVs. IFs also place greater importance on long range planning/forecasting formand for technology and investment while JJVs are more export-oriented and place greater importance on long range planning/forecasting for market demand. IFs tend to be more innovative but less productive than JJVs.