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Entrance to the Japanese Market

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International Business Mergers and Acquisitions in Japan

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Abstract

This chapter examines foreign firms’ perceptions of market barriers related to the access, quality of inter-organizational institutions and their market commitment and performance in Japan. Findings suggest that foreign firms that perceive a higher level of macro-level institutional barrier are likely to have an unfavorable assessment of the accessibility of the Japanese distribution system. It was also found that firms with a favorable assessment of the accessibility of the Japanese distribution system are likely to develop better inter-organizational networks. Finally, the findings suggest that firms with a higher level of commitment to and performance in Japan are characterized by a favorable assessment of the accessibility of the Japanese distribution system and having better inter-organizational networks. However, years of experience in Japan or support of Sogo Shosha did not influence firms’ perceived institutional barriers.

This chapter is an updated version of Bebenroth et al. (2014) Foreign firms’ access to the Japanese market. European Journal of International Management 8(1): 1–19.

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Notes

  1. 1.

    Equal variances were assumed.

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Author information

Authors and Affiliations

  1. Kobe University Research Institute for Economics & Business Administration (RIEB), Kobe, Hyogo, Japan

    Ralf Bebenroth

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  1. Ralf Bebenroth
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Correspondence to Ralf Bebenroth .

Appendix

Appendix

1.1 Scales and Items Retained After Factor Analysis

1.1.1 Perceived Institutional Market Barriers to Enter Japan (PIMB) (cronbach’s Alpha = 0.816)

The following statements apply to our company´s original entry into the Japanese market ___ (year):

  • Legal regulations were difficult barriers.

  • Taxes were too high.

  • The assistance of governmental institutions was unsatisfactory/bureaucratic barriers were high.

  • The Japanese distribution system was extremely complex (intransparent/too many levels/too costly etc.).

  • Language and cultural differences caused problems.

1.1.2 Access to Distribution Systems in the Japanese Market (ACCESS) (cronbach’s Alpha = 0.844)

In our opinion the following statements apply as follows:

  • The distribution system in Japan is becoming less complex.

  • For foreign companies it has become easier to sell products in Japan.

  • The dealing with Japanese trading companies has become more convenient.

  • It is more convenient getting access to the Japanese distribution system.

1.1.3 Quality of Inter Organizational Institutions with Direct Business Partners in Japan (INTORG) (cronbach’s Alpha = 0.852)

In our opinion the following statements apply:

  • All of our direct Japanese business partners actively promote our products.

  • Some of our direct Japanese business partners have made special expenses for our business.

  • Our direct Japanese business partners are satisfied with the economic results of our cooperation.

  • The business views of our direct business partners correspond to our strategic plans.

  • The experiences of our direct business partners in Japan are a valuable support for accomplishing our aims.

  • Our products are essential for the market success of our direct business partners.

  • We are satisfied with our business results due to the cooperation of most of our Japanese business partners.

1.1.4 Market Commitment and Performance in Japan (MACP) (cronbach’s Alpha = 0.870)

The following statements apply to our company:

  • The business we are doing in Japan is of outstanding importance within our international business activities.

  • Generally, our Japanese retail partners engage themselves in selling of our products.

  • Japanese retail partners understand our corporate and sales philosophy.

  • The Japanese consumer is very different from the European consumer

  • Our sales and profit aims have been achieved or will be achieved in the near future

  • It was a good decision doing business in Japan.

  • Long-term relationships can be built easily with our direct and indirect customers.

  • Our products in Japan are of high brand equity.

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Bebenroth, R. (2015). Entrance to the Japanese Market. In: International Business Mergers and Acquisitions in Japan. Springer, Tokyo. https://doi.org/10.1007/978-4-431-54989-5_5

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