2015 Fiscal Year Annual Research Report
Japanese multinational companies' technological innovation in China
Project/Area Number |
25780230
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Research Institution | Hitotsubashi University |
Principal Investigator |
孫 康勇 一橋大学, 大学院国際企業戦略研究科, 准教授 (60620292)
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Project Period (FY) |
2013-04-01 – 2016-03-31
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Keywords | innovation / emerging market / organization |
Outline of Annual Research Achievements |
The research shows that in order to maintain competitive advantage in China’s markets, Japanese companies increasingly emphasize on innovation in developing new product and service and new business model that can better satisfy local consumers and corporation clients. On the one hand, it is because the demand and needs from consumers in China have been changing dramatically; on the other hand, competition from local Chinese firms more and more becomes a real, big threat to many Japanese companies.
My case studies and interviews find that in developing technological innovations, Japanese companies face three main challenges: (a) low competence of local Chinese employees in R&D and marketing/business development, and highly fluid human resource market, (b) low responsiveness to rapid changes in market conditions and customer needs because of ineffective global organization and rigid decision process, (c) low commitment and motivation from local Chinese employees due to ineffective human resource system and policies.
Based on case studies of successful Japanese companies such as Nissan, Panasonic and Daikin, the research identifies a number of best practices in copying with the challenges. One example is Daikin’s open innovation practices in developing a service-driven business model and another is Nissan’s reverse innovation case in developing a brand new car model for local Chinese consumers which potentially will be sold in markets outside of China.
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Research Products
(1 results)