EntryMode Strategies and Performance of Japanese MNCs in Australia and New Zealand: the Role of Japanese Employees

Abstract

This study investigates different entry modes and staffing practices, and their influence on performance in Japanese subsidiaries in Australia and New Zealand. Company data were derived from the Toyo Keizai data bank of Japanese overseas investments (Kaigai Shinshutsu Kigyou Souran) for the period from 2004 to 2008. The major assumption of this paper is that Japanese MNCs use their staffing policies as a means of exerting more influence over the entry mode strategy by having more control over the business operations in the host country. The study reveals ignificant differences in Japanese subsidiaries between the two countries. A relationship between performance and the variables of industry and employing Japanese expatriates was found for Australia