The evolution of Japanese investment in China: From toys to textiles to business process outsourcing

Abstract

The nature of Japanese firms' international activity in China underwent substantive change between 1995-2006. Japanese companies now compete in many more regions in China and have shifted their investment strategies in various provinces and municipalities to reflect new competitive realities. This creates substantial opportunities and challenges to scholars and practitioners alike. The challenge is to develop a nuanced understanding of sub-national variations in Japanese firms' strategies in China. The opportunities come from deepening research in three areas of scholarly endeavour: (1) subsidiary development and multinational firm strategy; (2) institutions and international business; and (3) offshoring, outsourcing and international business theory. © 2009 Taylor & Francis.