Performance Of Japanese Firms Research Articles

The regional and temporal nature of hypercompetition

Numerous scholars have suggested that the global technology-intensive sector has become hypercompetitive, yet few have tested this empirically. Those that have find seemingly conflicting evidence. Applying commonly used measures, we explore whether this could be due to hypercompetition being more time and context specific than previously thought. Based on data from the United States, Europe, Japan, and China covering 1980–2018, we find no indication of a generalized increase in business performance volatility in this sector across regions. We do find a declining stability in the performance of Japanese firms over the study period, but in US firms only leading up to the burst of the dotcom bubble. A structural break analysis helps us conclude that hypercompetition is a phenomenon limited in both location, time, and industry, linked to industry breakpoints across its life cycle.

The Global Dynamics of Technology-Intensive Sectors: Are we Seeing Hypercompetition?

We test whether global technology-intensive sectors have become hypercompetitive over the 1980-2018 period. This is what numerous scholars have suggested, yet few have tested. Based on data from the United States, Europe, Japan, and China, we find no indication of a generalized increase in business performance volatility across regions. We instead find regional differences, such as a declining stability in the performance of Japanese firms over the study period, and in US firms leading up to the burst of the dotcom bubble. A structural break analysis helps us identify that hypercompetition is a “local” phenomenon in both location, time, and industry. We conclude that there is a lack of evidence supporting assumptions of widespread hypercompetition in technology-intensive sectors.

Impact of corporate social responsibility (CSR) awareness, affordability and management system sophistication on CSR performance

PurposeThis paper aims to examine the impact of three key factors — corporate social responsibility (CSR) awareness, CSR affordability and CSR management system (CSRMS) sophistication—on the CSR performance of Japanese firms.Design/methodology/approachUsing responses to 36 items developed on the Global CSR standard of ISO26000, two CSR indexes were constructed to assess the CSR management system sophistication and performance of Japanese firms. The relationship between the three key variables (CSR awareness, affordability and management system sophistication) and CSR performance was then examined through a partial least squares (PLS)-based structural equation model. Data were collected through a questionnaire survey of 146 firms.FindingsThe results of the study found a positive relationship between CSR performance and three exogenous variables (CSR awareness, affordability and management system sophistication). Furthermore, the study found that CSRMS sophistication played a mediating role in the relationship between CSR performance and firms' CSR awareness and affordability.Research limitations/implicationsThe study was limited to examining the CSR practices of a major province in Japan, which may hinder the generalisation of the findings to the rest of the country. Moreover, the data used for assessing the variables in this study were self-reported by the participating firms, in addition to being cross-sectional. The findings of this study clarified areas that policymakers, including Japan's business associations–Keidanren and Keizai Doyukai, and other relevant parties need to focus on for further improving CSR performances of Japanese firms.Originality/valueThis study highlights the role CSR awareness, affordability and CSRMS sophistication play in improving CSR performance. On the one hand, it identifies the critical role CSRMS plays in mediating the relationship among CSR performance, awareness and affordability. On the other hand, it advances CSR theory providing insight for practitioners to generate positive CSR outcomes.

Impact of innovativeness on business performance of Japanese firms in Vietnam

Innovativeness is usually considered to be the key to the survival and development of firms in the context of increasing competition in the global market. However, studies on the link between innovativeness and business performance of firms have not been studied much in Vietnam. Therefore, the research aims to identify and assess the impact of innovativeness on four perspectives in balanced scorecard including customers, finance, internal processes, employee learning and growth. Results from 144 responses out of 670 surveys on Japanese firms investing in Vietnam showed that innovativeness has a significant impact on business performance in both financial and non-financial aspects. Additionally, improving non-financial performance also has a positive impact on financial performance in firms. This conjointly implies that in the context of the increasingly spirited market as it is today to survive and develop in the long run, firms need to specialise in improving innovativeness to extend business performance efficiency.

An empirical study of the relationship between marketing standardization and performance of Japanese firms in international markets: the moderating role of product strategy

An empirical study of the relationship between marketing standardization and performance of Japanese firms in international markets: the moderating role of product strategy

低炭素型企業経営に向けたグリーンサプライチェーンマネジメント（GSCM）展開構造の研究

低炭素型企業経営に向けたグリーンサプライチェーンマネジメント（GSCM）展開構造の研究

An Empirical Study on the Relationship between Sophisticated Capital Budgeting Practices and the Performance of Japanese Firms

An Empirical Study on the Relationship between Sophisticated Capital Budgeting Practices and the Performance of Japanese Firms

The Japanese global leadership challenge: what it means for the rest of the world

The rise of the modern Japanese economy in general and of Japanese multinational corporations (MNCs) in particular has been well documented. However, as the Japanese economy has struggled and as emerging markets including China have taken off, interest in Japanese multinational firms has slid. This is unfortunate, because the relative failure of Japanese MNCs to adapt to a more complex, global marketplace can provide lessons for the rest of the world, particularly MNCs from emerging markets. The purpose of this work is to examine why Japanese firms succeeded first at home and then in exports, but overall failed to move successfully into international operations and globalization. This work is informed by examining the relative performance of Japanese firms on several databases, such as the Fortune Global 500 and United Nations Conference on Trade and Development (UNCTAD), and through in-depth case studies – one of which we share here. Our research found that many of the factors that helped Japanese firms succeed at home and with exports became stumbling blocks as they set up operations overseas and later tried to globally integrate their increasingly complex worldwide operations. Specifically, their efforts to transplant into foreign operations methods that worked domestically and with exports created huge unanticipated negative consequences. In particular, the reliance of Japanese firms on home-country expatriates combined with their failure to identify and develop local talent or to promote non-Japanese leadership talent to regional and global positions severely hurts their ability to globalize their operations and grow their non-Japanese revenue, especially when compared to North American and European multinational firms. We review the huge challenges this posed not only on Japanese affiliates in general but on the people at senior leadership positions at home and abroad in particular. Understanding the psychology of both Japanese and foreign managers is critical to gaining insights into how and why so many Japanese multinational firms derailed over the past decade. We review not only the conditions that led to the failure of so many Japanese firms, but also the actions they need to take to regain their place on the global stage. Finally, our research offers a cautionary tale for multinational firms from emerging markets such as Brazil, Russia, India and China. Many firms from these countries are in situations that are similar to those of Japan 30 years ago. Failure to learn the lessons from the Japanese global leadership challenge could increase the chances that in not learning from history they are doomed to repeat it.

Managerial ties with local firms and governments: an analysis of Japanese firms in China

This study explores how managerial ties between foreign firms and local firms and those between foreign firms and local government officials affect the performance of firms operating in transition economies. Using survey data collected from Japanese firms operating in China, this study finds that managerial ties between foreign firms and both local firms and local government officials are positively associated with the performance of Japanese firms in China. The study also examines how attributes specific to foreign firms operating in transition economies moderate the positive effect of managerial ties on the performance of foreign firms. Three significant moderators: host country experience, strategic orientation, and local market knowledge of foreign firms, are highlighted in the analysis.

The Factors Affecting Overall Performance in Japanese Firms: An Analysis among Environment, Strategy, Structure and Performance

The Factors Affecting Overall Performance in Japanese Firms: An Analysis among Environment, Strategy, Structure and Performance

The Factors Affecting Overall Performance in Japanese Firms: An Analysis among Environment, Strategy, Structure and Performance

This Study examined factors affecting overall performance in Japanese trading conglomerates by analysing the relationships among business environment, competitive strategy. organizational structure, and performance. As in the previous literature. this research also found that a form’s performance is not determined by a single factor, bur can be achieved through a combination of all elements such as strategy and organizational structure. However, contrary to our general understanding, one notable finding is that the environmental variables are not deemed as main obstacles for Japanese trading firms that hinder their overall performance. Although in the past, environmental uncertainty and complexity were regarded as a barrier char had to be overcome, they seem to be considered an essential prerequisite for Japanese trading conglomerates to attain their goals at present. This study also investigated the competitive strategy which Japanese trading firms are pursuing at this moment. Against Porter’s original approach, they can in some cases adopt more than one strategy at a rime from the generic strategies. This implies that Japanese trading firms may not create and sustain competitive advantage with a single specific strategy in today’s highly competitive business environment. For this reason, they mix two or more competitive strategies at once in order to respond against a highly competitive business environment.

Cash conversion cycle and firm's performance of Japanese firms

PurposeThe purpose of this paper is to investigate the relation between a firm's cash conversion cycle and its profitability.Design/methodology/approachThe relation between the firm's cash conversion cycle and its profitability is examined using dynamic panel data analysis for a sample of Japanese firms for the period from 1990 to 2004. The analysis is applied at the levels of the full sample and divisions of the sample by industry and by size.FindingsA strong negative relation between the length of the firm's cash conversion cycle and its profitability is found in all of the authors’ study samples except for consumer goods companies and services companies.Originality/valueTraditional focus in corporate finance was on the long‐term financial decisions, particularly capital structure, dividends, and company valuation decisions. However, the recent trend in corporate finance is the focus on working capital management. Most of working capital management literature is based on the US experience. This study investigates the relation between the firm's cash conversion cycle and its profitability of Japanese firms where the organizational structure is totally different from that of the US firms; most of the Japanese firms are interconnected and related through corporate groups (keiretsu).

The initial and long‐run returns of Japanese venture capital‐backed and non‐venture capital‐backed IPOs

PurposeThe purpose of this paper is to examine initial and long‐run returns of Japanese IPOs in particular venture capital (VC)‐backed and non‐VC‐backed. The main research focus is on the performance of VC‐backed companies.Design/methodology/approachThis paper presents a comprehensive long‐run performance analysis. As such, it provides evidence using two performance methods: cumulative abnormal returns (CARs) and buy‐and‐hold return (BHARs). This paper uses updated data from 1998 through 2001 and presents a deeper understanding for the long‐run returns of Japanese IPOs.FindingsThe findings show that there is no statistically significant difference in the initial returns of VC‐backed and non‐VC‐backed companies. The evidence is inconsistent with the VC certification hypothesis that venture capitalists certify the true value of the firm and therefore reduce underpricing. Further, Japanese IPOs underperform in the long‐run. The fads hypothesis is applicable to explain the poor long‐run performance. The results suggest that although VC‐backed companies have high initial returns, they perform significantly worse over a three‐year time horizon than non‐VC‐backed companies.Research limitations/implicationsAn examination of the lock‐up agreements is necessary to understand negative returns. The results of this paper provide a good starting point for such a study.Practical implicationsThis paper highlights the stock returns of VC‐backed and non‐VC‐backed companies. It is hoped that investors and academics will benefit from the outcome of the current paper.Originality/valueTo date, there is no comprehensive study on the Japanese IPO market applying both CAR and BHAR long‐run measurements. This paper applies both measurements. Further, this is the first study of the long‐run performance of Japanese firms going public in Mothers and in Hercules stock markets.

Corporate Governance and Stock Performance of Japanese Firms

In this study, we construct a corporate governance index based on several attributes known for their association with firm profitability and market value. The index is used for evaluating the performance of governance-sorted portfolios. We find that the portfolio of well-governed firms significantly under performs the portfolio of poorly governed firms. This result is essentially explained by the higher valuation of well-governed firms. After adjusting for market, size and value (book-to-market) risk factors, excess returns become insignificant across all portfolios. This appears to suggest that governance attributes are accurately reflected in stock prices. However, the period of investigation may have influenced the outcome. More research is needed before concluding to the irrelevance of corporate governance ratings for portfolio selection.

Information Technology and the Performance of Japanese SMEs

This paper examines the impact of investment in information technology (IT) on the performance of Japanese firms. My findings imply that there is a positive and statistically significant relationship between IT and firm profitability and innovation, but only for small firms. These results underscore the importance of investment in IT for small companies. The acceptance of IT by this sector is fundamental to the success of structural adjustment in the Japanese economy.

Effects of Board Structure on Firm Performance: A Comparison Between Japan and Australia

This article compares the effects of board size, proportion of female directors, proportion of outside directors and average age of directors on firm performance in Japanese and Australian firms. We found that board size and age of directors were negatively associated with the performance of Japanese firms. For Australian firms, outsider ratio and female director ratio were positively associated with performance.

The Impact of Global Capital Market Exposure and Stable Ownership on Investor Relations Practices and Performance of Japanese Firms

This paper examines whether greater exposure to global capital markets, stable share ownership, and group affiliation of Japanese firms have any impact on the quality of their investor relations practices (IR) and market-value added (MVA). The results indicate that foreign ownership and foreign listings are positively associ- ated with IR. Foreign listings are also positively associated with MVA. However, stable ownership and group affilia- tion do not seem to have any impact on IR. These findings suggest that Japanese firms that are more exposed to global capital markets are more likely to adopt shareholder-oriented policies rather than stakeholder-oriented policies.

Ownership Structure and Performance of Japanese Firms: Horizontal Keiretsu, Vertical Keiretsu, and Independents

Financial economists have devoted substantial effort to describing and analyzing the governance structures of the Japanese keiretsu, or business groups, to explain how their features serve to improve group performance. The governance mechanisms described provide an informative contrast to the market based monitoring mechanisms of the Anglo-American governance system. In this paper we compare the performance of Japanese keiretsu member firms with that of independent Japanese firms, whose governance structure is more market based. We also compare the performance of different types of keiretsu group members. Two results emerge. First, we find no support for the hypothesis that the overall set of governance structures of keiretsu firms are more effective at maximizing shareholder wealth than are those of independents. In addition, we document significant performance differences among different types of group member firms.

Is Foreign Exchange Risk Priced in the Japanese Stock Market?

The exchange rate is an important variable that affects international competitiveness and performance of Japanese firms. We use an unconditional and a conditional multi-factor asset pricing model to examine whether exchange risk is recognized and priced in the Japanese stock market. The results indicate that the exchange risk is generally priced in Japan. More specifically, we provide evidence, in the unconditional model, that the exchange risk is priced in both weak and strong yen periods, when the bilateral yen/U.S. dollar exchange rate measure is used. The results are more mixed when the trade-weighted exchange rate is used. For the conditional model, the exchange risk is priced regardless of the exchange rate measure used. The combined evidence from the two models suggests an interesting observation about the role of the secular exchange rate trend in shaping the perception of exchange risk in the Japanese capital markets.

Do Japanese Firms Smooth Their Financial Results?

ABSTRACT This paper attempts to determine whether Japanese companies “smooth” (i.e., reduce variations in) their financial results. It has three major objectives: (1) to establish a “motive” which explains why Japanese firms might want to “smooth” their financial results, (2) to identify specific techniques or practices which allow Japanese firms to control their reported results, and (3) to demonstrate that the performance of Japanese firms is indeed less volatile than the performance of similar companies in other countries (in this case, the U.S.). But while it is possible to identify both the motives and the means for “smoothing,” and to demonstrate empirically that the returns of Japanese companies are far less volatile than the returns of similar American firms, “smoothing” cannot be established with confidence. An alternative explanation is that the lower volatility of Japanese returns reflects the unique institutional structure of the Japanese economy, the cooperative nature of inter-firm relationships in Japan, and a relatively low level of risk in the Japanese business environment.