Spaces of International Economy and Management Spaces of International Economy and Management Launching New Perspectives on Management and Geography Edited by Rolf D. Schlunze Nathaniel O. Agola and William W. Baber palgrave macmillan * Selection and editorial content Cl Rolf D. Schlunze, Nathaniel O.Agoia and William W. Baber 2012 Individual chapters () the contributors 2012 Foreword Cl HenryWai-chung Yeung 2012 Sohcover reprint of the hardcover 1st edition 2012 978-0-230-30022-4 All rights reserved. No reproduction, copy or transmission of this publication may be made without written permission. No portion of this publication may be reproduced, copied or transmitted save with written permission or in accordance with the provisions of the Copyright, Designs and Patents Act 1988, or under the terms of any licence permitting limited copying issued by the Copyright Licensing Agency. Saffron House, 6-10 Kirby Street, london EC1N aTS. Any person who does any unauthorized act in relation to this publication may be liable to criminal prosecution and civil claims for damages. The authors have asserted their rights to be identified as the authors of this work in accordance with the Copyright, Designs and Patent!; Act 1988. First published 2012 by PALGRAVf MACMILLAN Palgrave Macmillan in the UK is an imprint of Macmillan Publishers limited, registered in England, company number 785998, of Houndmills, Basingstoke, Hampshire RC21 6XS. Palgrave Macmillan in the US is a division of St Martin's Pren LLC, 175 Fifth Avenue, New York, NY 10010. Palgrave Macmillan is the global aCiidemic imprint of the above companies and has compallies and representatives throughout the world. Palgravell> and Macmillanll> are registered trademarks in the United States, the United Kingdom, Europe and other countries. ISBN 978-1-349-33594-7 ISBN 978-0-230-35955-0 (eBook) DOI 10.1057/9780230359550 This book is printed on paper suitable for recycling and made from fully managed and sustained forest sources. logging, pulping and manufacturing processes are e.pected to conform to the environmental regulations of the country of origin. A catalogue record for this book is available from the British library. A catalog record for this book is available from the library of Congress. 10987654321 21 20 19 18 17 16 15 14 13 12 '" Contents List of Tables vii List of Figures ix Acknowledgements xii Foreword xiii Henry Wai-chung Yeung Notes on Contributors xx Part I Defining Management Geography 1 Spaces of International Economy and Management: Launching New Perspectives on Management and Geography 3 Rolf D. Schlunze, Michael Plattner, William W Baber, and Nathaniel o. Agola 2 "Hybrid" Managers Creating Cross-Cultural Synergy: A Systematic Interview Survey from Japan 24 Rolf D. Schlunze 3 Mobile Elite in the Global City: International Managers' Location Preferences 46 Michael Plattner Part II Spaces of International Economy 4 Managing Global Cities through Corporate Network Analysis 6S Ronald S. Wall S Competition Development in the BRIC Countries: Toward a Unified International Economic Space 82 Rinas V. Kashbrasiev 6 Regulatory Risk and Foreign Investments Developed in Latin America 9S Anxo Calvo Silvosa and Ruben C. Lois-Gonzalez 7 Restructuring in Regional Economies and Introducing a Province System in Japan: With Special Reference to the Kansai Region 113 Masato Ikuta v vi Contents 8 Trading Area and Locational Decision of Foreign Affiliates in Osaka Prefecture 134 Sawako Maruyama Part III Spaces of International Management 9 How Does US Educational Experience Shape the Everyday Work Environment of Japanese Legal Professionals? ISS Tim Reiffenstein 10 Global Operations of Japanese MNEs' Hybrid Factories: Management Geography Framework 176 TetsuoAbo 11 Spaces of]apanese Management: Toward a Dynamic Hybridization Theory 200 Katsuo Yamazaki 12 Survival Strategies of a Local Industry and the Characteristics of Its Overseas Operations: A Case Study of the Glove-Related Industry in Eastern Kagawa, Japan 221 Atsushi Taira 13 International Production Allocation Strategies of Japanese Animation Studios 239 Kenta Yamamoto 14 Adjusting to a Distant Space: Cultural Adjustment and Interculturally Fluent Support 2S4 William W Baber Part IV A New Perspective IS New Geographies of Global Managerial Practice: The Case of Business Services 271 Andrew Jones 16 Location-Based Service Innovation Technologies in Japan: A Survey and Critical Analysis 296 Nathaniel O. Agola 17 Space Oddity - On Managerial Decision Making and Space 304 Patrik Strom and Roger Schweizer 18 Internationalization of Business Networks: How Do Managers with Divergent Cultural Norms Contribute? 322 Michael Plattner Index 347 Tables 2.1 Differences between expat and hybrid managers 37 2.2 Synergy creation differs by location 39 3.1 Attributes and variables to distinguish locational preferences 53 3.2 Coefficients of the principal component analysis by city-location 57 3.3 Coefficients of the principal component analysis by manager type 58 3.4 Result of the rotated component matrix 58 4.1 Negative binomial pseudo maximum likelihood regression on the number of corporate connections between countries 70 6.1 Clusters 105 8.1 Location of foreign affiliates by prefecture, 2004 135 8.2 Number of affiliates and composition 141 8.3 Areas in which most suppliers are located 142 8.4 Share of Osaka companies among all suppliers 143 8.5 Areas in which most customers are located 143 8.6 Share of Osaka companies among all customers 144 8.7 Reasons for locating in Osaka 146 9.1 Case study examples: Japanese subjects with US law school experience 164 9.2 How does the education of Japanese students benefit US law schools, individuals, firms, and the Japanese legal sector? 170 10.1 Three types of market, organization and business model in three major regions 180 10.2 Application ratio of the Japanese production system at overseas Japanese plants 182 11.1 Comparison between the surveys in 1989 and 2000 203 11.2 Criteria for application-adaptation (hybrid) (23-item, six-group) evaluation 205 12.1 The contents of the current domestic sales of the glove-related industry in eastern Kagawa 229 12.2 The contents of the current sales for export of the glove-related industry in eastern Kagawa 229 vii viii List of Tables 12.3 Foreign operations for production of the glove-related industry in eastern Kagawa 231 13.1 Subcontracted animation processes by region 244 13.2 Japanese studios' emphases when they contract work out to Korean and Chinese studios 244 13.3 Annual sales and import/export values in the Korean animation industry 246 13.4 Outline of activities of Studio A, Studio B, and Studio C and origin and experience of each manager 250 14.1 Comparison of cultural informant and mentor 259 18.1 Actor attributes 328 18.2 Network homophily measures 331 Figures 1.1 Logic of managerial embeddedness 7 2.1 Strategic intent and acculturation: necessary conditions for synergy 33 2.2 Types of working style 34 2.3 Types of lifestyle 35 2.4 Leveraging of sources of synergy 40 2.5 Balancing strategic intent and acculturation for synergy 41 3.1 Framework to measure sources of international management success 49 3.2 Results from the principal component analysis: Tokyo vs Osaka 51 3.3 Results from the principal component analysis: global vs local network by city-location 51 3.4 Results from the principal component analysis: expat vs hybrid manager 52 3.5 Results from the principal component analysis: global vs local network by manager type 52 4.1 Functional linkages in a hypothetical urban system 72 4.2 GIS map of the distribution of corporate connectivity (ownership shares) between nations 72 4.3 UCINET network diagram of the distribution of corporate connectivity between nations 73 4.4 GIS map of the intercity distribution of advanced producer service connectivity 74 4.5 Competition in the corporate intercity network of advanced producer services 74 4.6 Hypothetical model to explain urban management in relation to network performance and competition 77 5.1 Economic growth rates of BRIC countries, 2000-2008 83 6.1 Regulatory risk as a component of political risk and, in turn, of country risk 96 6.2 Dendrogram using the Ward Method 106 6.3 Variables (1) 107 6.4 Variables (2) 107 7.1 Japanese regions 116 7.2 Kansai region 118 7.3 Concept of Osaka Metropolitan Area 120 ix