Winning in Asia, U.S. Style: Market and Nonmarket Strategies for Success

294 Pages·2003·1.16 MB·English

by  Vinod K. Aggarwal

Vinod-FM 4/7/03 9:47 AM Page i
Winning in Asia,U.S.Style
This page intentionally left blank
Vinod-FM 4/7/03 9:47AM Pageiii
Winning in Asia, U.S. Style
Market and Nonmarket
Strategies for Success
Edited by
Vinod K.Aggarwal
Vinod-FM 4/7/03 9:47 AM Page iv
WINNINGINASIA,U.S.STYLE
© Vinod K.Aggarwal,2003.
All rights reserved.No part of this book may be used or reproduced in any
manner whatsoever without written permission except in the case of brief
quotations embodied in critical articles or reviews.
First published 2003 by
PALGRAVE MACMILLAN™
175 Fifth Avenue,New York,N.Y.10010 and
Houndmills,Basingstoke,Hampshire,England RG21 6XS.
Companies and representatives throughout the world.
PALGRAVE MACMILLAN is the global academic imprint of the
Palgrave Macmillan division of St.Martin’s Press,LLC and of
Palgrave Macmillan Ltd.Macmillan® is a registered trademark in the
United States,United Kingdom and other countries.Palgrave
is a registered trademark in the European Union and other countries.
ISBN 0–312–23911–4 hardback
Library of Congress Cataloging-in-Publication Data
Winning in Asia,U.S.style:market and nonmarket strategies for
success/edited by Vinod K.Aggarwal.
p.cm.
Includes bibliographical references.
ISBN 0–312–23911–4
1.Export marketing—United States—Management.2.Export marketing—
Asia—Management.3.Strategic planning—United States.4.Strategic
planning—Asia.5.Corporations,American—Asia—Case studies.6.
Investments,American—Asia—Case studies.7.United States—Foreign
economic relations—Asia.8.Asia—Foreign economic relations—United
States.I.Title:Winning in Asia,U.S.style.II.Aggarwal,Vinod K.
HF1416.5.W56 2003
658.8´48—dc21 2002191245
A catalogue record for this book is available from the British Library.
Design by Newgen Imaging Systems (P) Ltd.,Chennai,India.
First edition:June,2003
10 9 8 7 6 5 4 3 2 1
Printed in the United States of America.
Vinod-FM 4/7/03 9:47 AM Page v
C O N T E N T S
Preface vii
Contributors ix
List of Abbreviations x
Part One Theoretical Framework and
Economic Overview 1
Chapter One Analyzing American Firms’Market and
Nonmarket Strategies in Asia 3
Vinod K. Aggarwal
Chapter Two U.S.Foreign Direct Investment in Asia 26
Shujiro Urata
Part Two Case Studies 47
Chapter Three American Presence in Accountancy
Services in Japan 49
Fukunari Kimura
Chapter Four Finding the Right Chemistry:The U.S.
Chemical Industry in Asia 69
Kun-Chin Lin
Chapter Five The American Automobile Industry in Asia 95
Beverly Crawford and Nick Biziouras
Chapter Six American Telecommunications in Japan 139
Takahiro Yamada
Vinod-FM 4/7/03 9:47 AM Page vi
vi Contents
Chapter Seven American Software in Asia:Enterprise
Software in Japan and Beyond 168
Trevor H.Nakagawa
Chapter Eight Market and Nonmarket Strategies of the
U.S.Electronics Industry 206
John Ravenhill
Part Three Conclusion 237
Chapter Nine Lessons from American Firms’Strategies in Asia 239
Vinod K.Aggarwal
Index 273
Vinod-FM 4/7/03 9:47AM Pagevii
P R E F A C E
As Asian countries have recovered from the crisis of 1997–1998,
American,European,and Japanese firms are again jockeying for position
in these dynamic markets.Although the crisis did create doubts about
the prospects in these markets,the initial pessimism has been replaced by
optimism as these countries for the most part have sustained a “V”
shaped recovery.This book analyzes how American firms have attempted
to succeed in Asian markets, both before and after the Asian crises.
A central focus of this volume is the formulation and implementation of
market,nonmarket,and organizational strategies.Market strategies have
been the topic of many works.Yet as the case studies in the book
demonstrate,the most successful firms have succeeded in Asia by inte-
grating market strategies with nonmarket and organizational strategies
that help firms respond to and benefit from shifts in the political,eco-
nomic, and social environment. Firms that have been able to leverage
their capabilities to secure assistance from their home governments,and
that have pursued and developed strategic relationships with Asian gov-
ernments and firms,have repeatedly emerged as winners.By examining
integrated market, nonmarket, and organizational strategies, both from
an analytical and empirical perspective, I hope that this book will
enhance understanding of firm strategies in Asia that will be of
benefit to both analysts and practitioners.
This project has been generously supported by the Center for Global
Partnership of the Japan Foundation. Over a three-year period, their
financial assistance has allowed us to examine Japanese,American, and
European firm strategies in a changing Asian market. In particular,
I would like to thank Takashi Ishida, the current director, and Junichi
Chano,the previous director,as well as staff members Susan Hubbard,
Mary McCarthy, Sandhya Rao, and Lisa Weiss.The earlier work on
Vinod-FM 4/7/03 9:47AM Pageviii
viii Preface
Europe was supported by a grant from the Institute of European Studies
of the University of California.We are greatly indebted to the Institute’s
director,Gerald Feldman,and its deputy director,Beverly Crawford,for
their help.
Two workshops were convened in Berkeley to discuss the papers in
this volume and a wrap-up conference brought together participants
from the European,American,and Japanese projects to allow participants
to share ideas, compare notes, and better understand different sectors
from a comparative perspective.The contributions of other readers are
acknowledged by the authors of each of the chapters.
We are especially indebted to the staff of the Berkeley APEC Study
Center (BASC).At BASC, Elaine Kwei, Ed Fogarty, Ralph Espach,
Trevor Nakagawa, Kun-Chin Lin, Min Gyo Koo, and Zachary Zwald
have provided valuable research assistance,comments,and help in organ-
izing the Berkeley workshops.A number of undergraduates also assisted
in preparing the manuscript and in editing papers.For their help,we are
particularly grateful to Joel Burgos, Katie Fehlberg, Jonathan Essner,
Matt Odette,Devon Rackle,Jennifer Rho,and Olivia Wu,all of whom
have worked or currently work at BASC as part of the Berkeley
Undergraduate Research Apprenticeship program.
Toby Wahl of Palgrave has ably taken over from Karen Wolny who
originally signed the “Winning in Asia Series.” Gabriella Pearce, who
works with Toby,has been of immense help in managing the publication
process.
Vinod K.Aggarwal
University of California at Berkeley
October 2002
Vinod-FM 4/7/03 9:47AM Pageix
C O N T R I B U T O R S
VINOD K.AGGARWAL is Professor in the Department of Political
Science,Affiliated Professor in the Haas School of Business,and Director
of the Berkeley APEC Study Center (BASC) at the University of
California,Berkeley
NICK BIZIOURAS is a Ph.D.candidate at the Department of Political
Science at UC Berkeley
BEVERLY CRAWFORD is Deputy Director of the Institute for
European Studies at UC Berkeley
FUKUNARI KIMURA is Professor of Economics at Keio University,
Japan
KUN-CHIN LIN is Project Director of BASC at UC Berkeley and a
Ph.D.candidate at the Department of Political Science at UC Berkeley
TREVOR NAKAGAWA is a Ph.D. candidate at the Department of
Political Science at UC Berkeley
JOHN RAVENHILL is Senior Fellow in the Department of
International Relations at the Australian National University,Canberra
SHUJIRO URATA is Professor of Economics at Waseda University,
Tokyo
TAKAHIRO YAMADA is Professor at the Tokyo Institute of Technology