Overseas Manufacturers Research Articles

The Effect of Technology Transfers on Productivity Increment in Japanese Overseas Manufacturing

Technological innovation and technology transfer play an important role in enhancing the productivity of MNEs, especially the Japanese overseas manufacturing subsidiaries. The purpose of this study is to examine the association between R&D cost, technology purchase, and total factor productivity change and regression models with the survey data of Japanese Ministry of Economy, Trade, and Industry on Overseas Business Activities conducted over 2021-2023. Basic and Trend Surveys were combined to create a sample of 1,798 affiliates across 38 countries with variables such as R&D spending, Technology Transfer payments, capital stock growth, and employment growth. The evidence presented suggests that both technology and R&D payments enhance productivity improvement for the company, and the estimated returns on R&D investments is 0.54 Yen (JPY) for every JPY spent and technology transfer payments 0.76 JPY. The regression results also show a synergistic relationship between technology and R&D payments indicating that affiliates involved in both processes report higher levels of efficiency. In addition, the study also focuses on geographical specialization of technology transfer and R&D in industries including chemicals, pharmaceuticals, and machinery, where major expenditure on R&D is done across the globe and particularly in United States and in Europe.

Divesting or keeping overseas subsidiary production under rising production costs and uncertain market demands in host countries

This study examines whether overseas manufacturing subsidiaries are divested or kept under rising production costs and uncertain market demands in their host countries. We predict that even under increasing production costs, a subsidiary will not be divested but kept under high market demand uncertainty. A multinomial logit analysis of Korean overseas manufacturing subsidiaries finds that an overseas manufacturing subsidiary exposed to high labor cost growth in its host country is not divested but kept alive under high market demand uncertainty via cross-border production volume adjustments with other in-network subsidiaries in different countries. It also shows that the moderating impact of demand uncertainty on production shifts over divestment is pronounced more for the subsidiaries with low cross-country labor cost correlation, high product compatibility, and high ownership share. These findings imply that the longevity of subsidiary operations is shaped by geographic and organizational characteristics determining production shift conditions.

Adapting lean manufacturing principles to the footwear industry: Kaizen, Kanban or a Mix?

This study presents the overview of Kaizen and Kanban implementation, as lean principles and highlights the achievements realised from deployment of the integrated initiatives for sustainable performance of organisations. Lean manufacturing includes various principles and techniques, with the same main goal: to banish waste and non-value-added activities at every production or service process and enhance customer satisfaction. To stay competitive, many Indian footwear manufacturers have sought to optimise their manufacturing processes to readily compete with overseas manufacturers. Therefore, this work highlights the barriers, pathways and potential innovations for sustainable Kaizen and Kanban implementation in organisations. It further brings out the integrated concept of Kaizen and Kanban, and the requirements for its holistic implementation. Methods such as process observations, interviews, plant tours and case studies were used for the investigation. The significant contributions through Kaizen and Kanban initiatives in the organisation, including just-in-time improvements, quality, inventory reduction, optimisation, teamwork and flexibility for sustained organisational development are elucidated and juxtaposed with existing literature. It pivots the approach advised by the various researchers, practitioners and censoriously appraises the desire for Kaizen and Kanban programmes in the organisation. Significantly, this study is valuable to researchers, project and quality managers, development professionals and operations managers in various organisations, especially the footwear industry.

How to Induce Multinational Firms’ Local Sourcing to Break Carbon Lock-in?

Carbon lock-in poses a significant challenge in developing countries such as India and China. To mitigate this issue, these countries can leverage mandatory carbon emission reduction mandates imposed by multinational firms (MNFs) on their domestic manufacturers, thereby spurring the latter's investment in carbon emission reduction. However, facing eco-conscious customers, MNFs might opt to source from carbon-neutral overseas manufacturers even at high import tariff costs. We therefore explore how a local government can adjust the tariff rate and/or the domestic manufacturer's carbon emission reduction efficiency to induce an MNF local sourcing. Our findings indicate that even if the MNF has sourced locally, the overall emissions can be effectively reduced only when the domestic manufacturer's efficiency in reducing carbon emissions surpasses a unique threshold. Regarding social welfare, our results demonstrate a hump-shaped relationship with import tariff rates when an overseas sourcing strategy is adopted. We identify a triple-win situation where the MNF's local sourcing harmonizes the MNF's profit-maximization goal, the local government's environment protection goal, and the social welfare maximization goal. This paper sheds light on the value of MNFs’ sustainability requirements and local sourcing strategy in curbing emissions and tackling the pervasive issue of carbon lock-in that plagues many developing countries.

Blockchain adoption and strategic contracting in a green supply chain considering market segmentation

PurposeThe aim of this study is to examine the influence of consumer preferences for overseas green products and the implementation of blockchain technology on the performance of a supply chain, which comprises an overseas manufacturer and a domestic e-commerce platform. This research endeavors to identify the optimal pricing decisions and strategies for both the manufacturer and the platform in the context of the expanding e-commerce and globalization of the economy.Design/methodology/approachThe authors propose and analyze four distinct models based on the selection of selling contracts by the manufacturer and the adoption strategy of blockchain by the platform, using game theory to obtain the optimal solutions for these models.FindingsThe authors show that consumer migration promotes the manufacturer's green inputs, while the expansion of green consumer proportion is not conducive to it. They also show that blockchain technology has the potential to effectively limit manufacturer cannibalization. Interestingly, the study reveals a cascading effect of advantage where the manufacturer's profit variation trend changes only with the integration of pricing power advantage and blockchain technology inputs. This effect suggests that the equilibrium strategy is achievable under the agency contract with blockchain adoption, while Pareto improvement can be obtained with blockchain technology under both selling contracts.Research limitations/implicationsThis research could be extended in several possible directions. First, future work could explore outsourcing strategies for overseas manufacturers. Second, more types of consumer heterogeneity and different risk preferences could be considered. Third, this study can be extended by further exploring the design of mechanisms under asymmetric demand information to make the model more realistic.Originality/valueThe authors examine the impact of market segmentation and consumer preferences on green supply chain decisions, and analyze supply chain members' strategic choices for selling contracts and blockchain adoptions. The research also sheds light on the theoretical underpinnings and practical applications of green supply chain development and blockchain applications.

The Benefits of Co-branding for Chinese Games Going Overseas

With the popularity of 5G networks, China's game industry has seen unprecedented development prospects. For The Chinese game industry, the domestic market growth from growth to stable, the domestic demographic dividend temporarily came to an end, but the foreign game market is still a blue sea, Chinese game enterprises rely on the development of overseas game market to create profits and it has become the most effective way to maintain the sustainable growth of game income scale. The purpose of these study was to explore the joint launch of Player Unknown’s Battleground (PUBG) by Tencent in China and KRAFTON in Korea. The qualitative analysis and SWOT analysis were used in this paper. This research concluded that brand awareness, brand image and brand loyalty are interrelated. Besides, there was correlation between brand image and brand loyalty. Thus, by investing in overseas manufacturers, Tencent not only acquire game dealership rights but also introduce advanced research and development (R&D) technology from overseas to further improve its own R&D level. On this basis, Internet Protocol (IP) licensing opportunities obtained through investment cooperation will not only test the ability of self-research but also pave the way for Tencent to build its own matrix of games in all categories.

Development of a framework for quality assurance of off-site manufactured building components: A case study of the New Zealand housing sector

A shortage of housing is a prominent issue across the globe. Traditional on-site construction methods seem too inefficient to meet the increasing housing demand. As a solution, many countries, including the United States, Germany, Singapore, Japan, Hong Kong and Australia, have introduced off-site manufacturing methods to increase the housing supply. Different from the traditional way of on-site construction, off-site manufacturing is a technique that involves manufacturing building components in a controlled environment. Despite strong government support and industry attempts to increase off-site manufacturing, the current building consenting and inspection processes in New Zealand have significant quality-related issues. Therefore, this study aimed to identify the gaps in current quality assurance processes used in off-site manufacturing and recommend a framework in order to gain credibility and the acceptance of the construction market. The study collected qualitative data from industry experts (e.g., developers, architects, engineers, project managers, quantity surveyors, head contractors and council officers) who had significant experience in current quality assurance regimes in New Zealand prefabrication construction. The key themes for designing the proposed framework were generated using content analysis of the primary data collected from semi-structured interviews with industry experts. The study has found that standardisation in off-shore products regarding the New Zealand Building Code remains the biggest challenge in the consenting process. Quality assurance and inspection test plans are the developer’s responsibility and are typically provided by third-party inspectors. In this post-Covid-19 world-building, consent authorities rely heavily on third-party inspection companies that apply more rigorous auditing. Essentially, the most important parts of quality assurance are to have an experienced team and to adopt a holistic approach by engaging stakeholders early in the design stage. The stakeholders should consider recommendations for mandatory after-service insurance to ensure end-customer interests are protected. The findings of this study can contribute to the early engagement of different stakeholders to ensure overseas manufacturing of building components meets New Zealand quality standards. It is expected that the new quality assurance framework would help to promote off-site manufacturing for the New Zealand housing sector.

Bounded to the Buy Box: Entrepreneurial Strategies and Power within Platform-based Ecosystems

Contemporary entrepreneurs operate in a consumer culture mediated by a growing number of platform ecosystems. Furthermore, platform survival is dependent upon attracting such entrepreneurial complementors to their ecosystems. Yet, scholars are only recently beginning to grapple with the fundamental differences between traditional and platform-dependent entrepreneurship, particularly the fundamental power asymmetry between platform owners and platform dependent entrepreneurs. To explore power within platform ecosystems, I conducted a field-level ethnography of Amazon seller conferences, complemented by “zooming into” interview and archival data of platform-dependent entrepreneurs. Qualitative analysis revealed ambiguous understandings by all ecosystem members about the domains of actions and interests between the seller, Amazon as the platform owner, and other members of the ecosystems, such as third-party Amazon couriers and overseas manufacturers who often operate on other platforms such as Alibaba. Seller strategies for coping with the ambiguity required manipulation of the boundaries of the platform ecosystem to create a domain for action and shared interest. This research is particularly relevant because the impact of entrepreneurial firms’ embeddedness in platform ecosystems is largely unknown from a sociological perspective.

IMPACT OF BRAND IMAGE, PRICE AND QUALITY ON PURCHASING DECISION ON FOREIGN CLOTHING COMPANIES AMONG WORKING ADULTS IN KAZAKHSTAN

Customers of imported brand apparel in Kazakhstan are being studied for their purchase habits due to brand image and quality. Purpose of the research . The study's goals were to examine the impact of brand image and quality on consumer behavior. While also looking at how customer behavior affects purchasing choices. Methodology . By its very nature, this was a qualitative investigation. Simple random selection was used to choose a sample of 500 working people in Almaty and Nur-Sultan cities for this study, although only 408 of them took part in the survey as responders. A questionnaire was utilized to obtain data from the study's participants in this study. SPSS was used to analyze the data. Correlation, regression, and SEM were used to verify the hypothesis. Originality / value of the research . Results show that both quality and price influence consumer behavior and purchasing decisions for international apparel firms, whereas brand image has no bearing on the customer's purchase. As a result of customer behavior, it has been shown that purchasing apparel from overseas manufacturers is more likely. Findings . The findings of this research show how customers make purchasing decisions and what the future of the garment business will look like. Aside from understanding current market trends, this study will also help estimate customers’ prospective wants, aspirations, and tendencies.

Developing supply chain immunity for future pandemic disruptions

PurposeThe study discusses a rationale for a new type of capability called supply chain immunity that is required to address slow-moving, persistent and dispersed pandemics similar to COVID-19 in the future. The authors’ work on the COVID-19 emergency response suggests flaws in the medical and healthcare supply chain systems, due to reliance on overseas manufacturing and insufficient strategic stockpile.Design/methodology/approachIn seeking to understand the characteristics of supply chain immunity and how it is related to the need for a renewed strategic national stockpile, the authors adopted an inductive observational approach of engaged scholarship, based on their team’s extensive involvement in the national COVID-19 healthcare response during March–June 2020.FindingsThe study analysis, based on visibility, velocity and global independence, establishes a new type of supply chain immunity, along with the requirements for development of this capability. The framework for immunity proposed in this article provides general guidelines that an emergency responder would probably use in an informal fashion. The immunity framework is validated through references to current work on COVID-19 supply chain preparedness.Originality/valueThe understanding of readiness for pandemic operations using the metaphor of supply chain immunity is unique. It contains important observations on the development of capabilities – specifically, the outcome of an aligned medical and supply chain intelligence, a clinical standards organization and a materials management monitoring system. The authors’ insights are supported not only by literature but also due to direct engagement with academic scholars, Department of Defense (DoD) personnel, supply risk platforms and government officials involved in the COVID-19 pandemic response.

Analysis of the Relationship between Securing Smart Factory Manufacturing Competitiveness on Reshoring of Korean Manufacturing Companies Entering Overseas Markets

Purpose: As the corporate issues rapidly emerging in the manufacturing industry in recent years, how to understand the changing environment, establish well-timed corporate strategies and seek development directions. Thus, this study would demonstrate the analysis of the relationship of securing competitiveness in manufacturing at the smart factories of Manufacturing companies affecting overseas manufacturers’ reshoring. Research design, data, and methodology: To conduct this study, a clustering sampling method was utilized with executives and staff members at steel companies with overseas expansion experience from July 13 through July 21, 2020, and samples were extracted in the form of the self-recording type after the distribution of the questionnaires. The distributed questionnaires were 186 copies, and all 186 copies were collected. Then, excluding five copies of the questionnaire judged to have a systematic or unsystematic error, 181 copies were applied as the empirical analysis data. Results: As a result of testing the causality hypothesis for this study model, it was confirmed that all of them had a statistically significant influence relationship. Also, as a result of analyzing the mediating effect, it was finally confirmed that there was a partial mediating effect. Implications: Securing smart factory manufacturing competitiveness had a statistically significant effect on manufacturing competitiveness. In addition, it was confirmed that manufacturing competitiveness of manufacturing companies had a statistically significant effect on reshoring of manufacturing companies, and securing smart factory manufacturing competitiveness had a statistically significant influence on reshoring of manufacturing companies. In addition, as a result of examining whether there is a mediating effect between manufacturing competitiveness, it was finally confirmed that there was a partial mediating effect.

The Analysis of Indonesia’s International Business

International Business is a business whose activities pass the borders of the country. This definition includes not only international trade and overseas manufacturing, but also a thriving service industry in areas such as transportation, tourism, banking, advertising, construction, retail trade, large trade and mass communications. International marketing is different from International Business, International Trade is an inter-state transaction usually done by traditional way that is by way of export and import. With the export and import transactions, there will be a balance of tread, while international marketing which is the state of a company can be involved in a business transaction with other countries, other companies or the general public abroad. This international business transaction is generally an attempt to market overseas production. Stages in entering into international business: Incidental exports, Active Exports, License Sales, Franchising, Marketing outside the country, Production and Marketing Abroad. The obstacles in conducting international business are: Different Foreign Currencies, Low Resource Quality, Difficult State Payments and Great Risks, The existence of Import Policy of a State, The War, The existence of Regional Economic Organizations.

Offsite construction in the Australian low-rise residential buildings application levels and procurement options

PurposePrefabricated housing has become a boom industry across the world; however, the uptake of offsite construction (OSC) approaches in Australian low-rise buildings is rather low compared with high-rise buildings in other countries. This study aims to investigate and analyse the adoption of different levels of OSC approaches and the selection of different procurement options in Australian low-rise residential buildings.Design/methodology/approachThe research objectives were pursued through a mixed research method. An empirical questionnaire survey was carried out with 35 professionals in the Australian building and construction industry. Semi-structured interviews were conducted with 20 interviewees and analysed using thematic analysis method in NVivo software.FindingsThe research results found that the most suitable OSC level for Australian low-rise buildings is components-based prefabrication and identified the barriers to OSC uptake for each OSC level. The study also showed that the best option of procuring prefabricated products is from Australian manufacturers, followed by Australian suppliers/dealers and overseas manufacturers. Panelised prefabrication and components-based prefabrication are ranked as the most suitable OSC approaches for Australian manufacturers. Modular prefabrication is regarded as the most suitable for overseas manufacturer, while components-based prefabrication is the most suitable for Australian suppliers/dealers.Originality/valueThe selection of various OSC approaches and different procurement options in the low-rise residential buildings are scarcely explored topic, and thus, this study provides knowledge of interest for both researchers and practitioners.

해외진출 제조업의 국내유턴에 따른 경제적 순효과

해외진출 제조업의 국내유턴에 따른 경제적 순효과

Covid-19 Effects on the Medications Used to Treat Diabetes

Minority patients taking prescription drugs for diabetes mellitus and hypertension are sick and vulnerable. They should not be subjected to poor quality medications that can make them worse. The purpose of this review is to present data fortifying an argument that Covid-19 will continue to disproportionally effect minorities who suffer with Type 2 Diabetes Mellitus, Hypertension, and GI ulcer disease by limiting drug safety for pharmaceuticals that are imported from oversea manufacturers even after the pandemic is over. As a foundation an overview of the Food and Drug Administration (FDA) overseas inspection process that have been validated by previously published reports will be offered to accent the procedural process. Limitations and challenges to the overseas drug inspection process as documented by congressional leadership and the FDA are offered. An accurate scientific description of N-nitrosodimethylamine (NDMA) will be presented to emphasize its danger to these patients. Five key points or initiatives recently published by the FDA to assist in food and drug safety from overseas manufacturers during the Covid-19 pandemic will be presented

Making a Mundane Ceremony Into a Meaningful Organizational Ritual –Some Suggestions for Re-Design of Ribbon-Cutting Ceremonies of Overseas Manufacturing Projects

The overall number of newly installed oversea factories is counted in thousands. In many developing and emerging markets, especially in South-East Asia, Latin America and Russia, ribbon-cutting ceremonies for new facilities opened by foreign investors are mandatory. We ran a study identifying all videoed ribbon-cutting ceremonies for new facilities opened by foreign investors in Russia in 2012-2018. Using a detailed analysis of the content of speeches delivered by representative of foreign investors and representative of local authorities at those ceremonies, and information obtained through personal observations and interviews, we were able to discover the surface and deeper level meaning attaching to these ceremonies, to propose the definition of efficient plant-opening ceremonies and to demonstrate how it is possible to amend the design of such ceremonies to increase their effectiveness and also to increase mental coherence between the corporate center and oversea subsidiaries.

B2C cross-border E-commerce logistics mode selection considering product returns

Long delivery lead times and costly transportation postage are significant characteristics of B2C cross-border e-commerce and logistics. They engender preference inconsistencies and reversals in customers, which can lead to product returns. The aim of this study is to enable retailers to select the optimal cross-border logistics mode that fulfils their marketing strategies while taking product returns into consideration. We propose a novel way to describe customer utility by incorporating customer time preferences, and construct three cross-border logistics models. The theoretical and numerical analyses indicate that, if retailers want to eliminate or reduce their product return rates, they can adjust their delivery lead times in each logistics mode under various product procurement and sales prices, commodity tariffs, international and domestic postage and operating costs. In particular, the O2O mode is always a better option for retailers than the O2D mode, and under certain conditions, the D2D mode is better for retailers than the O2O mode. To increase market demand, the O2O mode is optimal for retailers selling high-priced products, while the O2D mode is optimal for retailers selling low-priced products. This study also provides suggestions for overseas manufacturers. These findings are applicable to B2C cross-border e-commerce, cross-border logistics, and overseas production.

Bending and shear performance of Australian Radiata pine cross-laminated timber

Cross Laminated Timber (CLT) is increasingly being used in commercial and residential construction in Australia due to its inherent strength and sustainability credentials. Until recently, infrastructure building projects using CLT have been reliant on imported products from overseas manufacturers. There is now a viable Australian grown and fabricated CLT product from Radiata pine. This paper summarises the experimental results on the mechanical behaviour of Australian Radiata pine CLT panels in out-of-plane bending and shear. Three-layer 105 mm thick panels and five-layer 145 mm panels with three different spans were tested. The results demonstrate strong correlations to existing theoretical models and were used to validate the finite element model (FEM) developed in this research.The experimental results showed that the average bending stiffness of the CLT panels were marginally greater than theoretical values. The maximum bending strength for Radiata pine exceeded the characteristic strength of 14.0 MPa for grade XLG1 external laminas, with three-layer CLT samples averaging 28.7 MPa and five-layer CLT samples averaging 26.8 MPa. The maximum observed shear stresses ranged from 1.55 MPa to 2.18 MPa, which also exceeded the rolling shear characteristic strength of 1.2 MPa for the feedstock. The results also highlighted that the shear strength decreases with an increasing thickness of the CLT panel.

Oil and gas project management and success: a critical evaluation of oil and gas project management success in Australia

Australia remains in pole position to become the world’s leading exporter of liquefied natural gas (LNG) and the number one exporter in the future. Maintaining this trajectory will require the oil and gas industry in Australia to remain competitive in project delivery to continue to attract investments. Yet, the Australian project delivery environment poses a big threat to this trajectory. Several research studies, organisations and institutions have come up with a long list of generic factors contributing to project management success and failure. The aim of this study is to examine oil and gas projects in Australia with a view to ascertain their success or otherwise and the specific contributing factors. This study has used a qualitative method of research by examining secondary sources of information on four recent Western Australia LNG projects (Gorgon, Wheatstone, Prelude and Ichthys) and presenting them as case studies. Specifically, the research has used mostly online sources that are either independent reports or information sourced from company websites. The key findings suggest that major oil and gas projects in Australia fail, and that failure or success is determined by the ability of the project management team to deliver the project on budget and on schedule. This is exemplified by the projects examined in this study, which have all shown cost and schedule overruns. Six critical factors are observed as contributing to cost and schedule overrun: project location, high cost of executing projects in Australia versus overseas, skills shortages, overseas manufacturing, project complexity and cultural and environment issues. Innovation, collaboration and standardisation, as adopted from other regions, are the initial practices suggested for the Australian industry to overcome all six factors and encourage further investment.

Forensic Engineering Analysis of Test Equipment Manufacturing Capability in a Business Purchase Dispute

A privately owned semiconductor test equipment company was sold by its U.S. domestic owners (seller) to a purchaser having an overseas manufacturing location (buyer). The sale was to take place in several stages. The buyer asserted that when the agreement was made he was unaware that the seller’s flagship product was being rejected by customers for not meeting specifications. When this came to light, the buyer refused to continue with the second and subsequent stages of purchase. The seller then sued the buyer for not complyingwith the agreement, and the buyer counter-sued for fraudulent deception. The author was retained by the buyer’s attorney to review specification documents regarding the product, due diligence reports, and e-mail chains regarding product quality, field returns, and repairs.