The Performance of Japanese Direct Investment in Four ASEAN Countries

The performance of foreign direct investment (FDI) activities of multinational enterprises (MNEs) is influenced by several factors. The main objective of this research is to investigate the performance-related issues of Japanese FDI in 4 dynamic ASEAN (Association of Southeast Asian Nations) economies; Indonesia, Malaysia, the Philippines and Thailand. The performance of affiliates of Japanese MNEs in this region has been observed and empirically examined in association with several determinants, especially the firm-specific advantages and entry strategy of the parent MNEs. The result suggests that the variables related to managerial know-how, international experience, and country experience incline to have positive influences on the profitability of affiliates. In the case of ownership structure, balanced-ownership IJVs obviously outperform other types of ownership.The result also suggests that the proprietary technology as well as the management know-how of the parent MNEs appear to be the primary factors for the success of their overseas affiliates and wholly-owned affiliates incline to have higher performance profile than international joint ventures

Autorentext

Dr Mourad Mansour jest adiunktem w dziedzinie zarz dzania, College of Industrial Management, King Fahd University of Petroleum and Minerals, Dharan, Arabia Saudyjska * Dr Yasuo Hoshino jest profesorem na International Pacific University, Okayama, Japonia oraz emerytowanym profesorem na University of Tsukuba, Tsukuba, Japonia.