1999 Fiscal Year Final Research Report Summary
A study of Corporate Strategy and Competetive Advantage of Multinational Company
| Project/Area Number |
09630119
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| Research Category |
Grant-in-Aid for Scientific Research (C)
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| Allocation Type | Single-year Grants |
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| Section | 一般 |
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| Research Field |
Business administration
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| Research Institution | Chuo University |
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Principal Investigator |
HAYASHI Shoichi Chuo University, Faculty of Policy Studies, Professor, 総合政策学部, 教授 (80064103)
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| Co-Investigator(Kenkyū-buntansha) |
TAKAHASHI Hiroyuki Chuo University, Faculty of Economics, Professor, 経済学部, 教授 (70104718)
TAKAYANAGI Satoru
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| Project Period (FY) |
1997 – 1999
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| Keywords | multinational company / global strategy / global competition / competitive advantage / holding company / subsidiary company / sub-contracted structure / divisional structure |
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| Research Abstract |
It has taken three years of research to study and analyze this subject. The subject can be broken down into the following three parts:
1) Global strategies of multinational companies.
2) Strategies of diversification and divisional structure.
3) Relationships between holding companies and sub-contracted entities.
With the growing global economy, the traditional sub-contracted structure has proved to be less effective as a source of competitive advantages for Japanese companies. We found that the companies have been reorganizing these relationships into newly grouped ones based on information technology. This shifts the companies toward a more knowledge intensive "Partnership" structure.
We began the research by looking at two case studies, that of Hitachi and Toyota. Both companies attempted to extend their businesses into the Chinese market. These companies discovered that its ratio of international progress. Its business pecullarities, and its regional features, amongst other factors, all play an important role in forming holding companies.
Finally, we analyzed the limitations of the traditional sub-contracted structures. This lead to a theory of dynamic relationships between the sub-contracted structures and the holding companies when it is growing informationalization and globalization.
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