Abstract
This study compares the factors that are inferred to directly and indirectly influence the process of determining employees’ turnover intention in Japan. This study focuses on the differences made by firm type, that is, Japanese firms vs. foreign-owned or foreign-affiliated firms. Multiple-group structural equation modeling was attempted by applying factors such as perceived organizational support, the positiveness of a worker, firm-specific skills, organizational commitment, perception of career opportunities within the current firm and in other firms, and turnover intention. It was found that the inferred determinants of turnover intention differed by firm type; specifically, career prospects, either internal or external, do not directly affect turnover intention in Japanese firms. For workers in foreign firms, positivity is significantly higher than that of Japanese firms. Positivity plays a crucial role in both firms; moreover, our study provides supporting evidence of the existence of sub-markets in Japan and shows that the transition of workers from foreign-owned to Japanese firms might be rare.
Highlights
Japan banned foreign direct investment until it joined the Organisation for Economic Co-operation and Development (OECD) in 1964
As for firm-specific skills, despite knowing that there are limits to how employees can accurately perceive the firm-specificity of their skills (Coff & Raffiee, 2015), using Griffith & Lusch (2007) and Greer et al (2017) as references, we developed the three original questions to measure the extent to which employees perceive that their knowledge and skills can be utilized in the current employers more effectively than in others: (1) I can utilize my experience gained at this firm here and produce the best performance, (2) The skills and knowledge that I have acquired here over time will be best utilized in this firm, and (3) The human network gained in this firm and outside world can be best manifested here
Before applying the multiple-group structural equation modeling (SEM), the two groups must be tested separately to confirm that the hypothetical model in Figure 2 is supported for each group
Summary
Japan banned foreign direct investment until it joined the Organisation for Economic Co-operation and Development (OECD) in 1964. At the end of 2018, Japan's inward foreign direct investment balance was less than 6% of the gross domestic product (GDP). The United States was more than 30%, and the United Kingdom was more than 60%. This has led to criticism of the low acceptance of foreign capital in Japan from other countries. For foreign companies to succeed in the Japanese market, they must overcome fierce competition in the domestic market, respond appropriately to the business practices that have been established and prevailing in the Japanese market, and meet the high level of consumer demand globally recognized. For foreign companies to succeed in the Japanese market, they must overcome fierce competition in the domestic market, respond appropriately to the business practices that have been established and prevailing in the Japanese market, and meet the high level of consumer demand globally recognized. (Cabinet Office [CAO], 2008; Hasegawa, 2001; OECD, 2006)
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