This study examines whether the Japanese management style should be reconsidered in emerging markets, from the subsidiary control perspective. Japanese companies have a specific management style and they are used to bringing their specific management style into overseas businesses. However, considering the dynamism of emerging markets and the feature of Japanese management that is to stabilize the business situation by strong headquarters' control, the transfer of the Japanese management style might be unsuitable for them. Instead, a more adaptive approach might be needed. Using overseas subsidiary control theory, we develop the hypothetical structure of the phenomenon that happens there. We then examine our hypotheses using survey data from Japanese subsidiaries.The results show that the transfer of Japanese way does not contribute to improving subsidiary performance in emerging markets, but the departure from it does. In addition, the acceptance of local culture, headquarters' decentralization, and creating local partnership promote thatdeparture.
Our research contributes mainly to two fields: one concerns the influence of the marketing department, and the other is the study of market orientation, especially research that views market orientation as an information process. Motivated by discussion of marketingʼs declining influence within the company, we investigated the marketing departmentʼs credibility and influence in Japanese firms, where it has traditionally wielded weaker power than in Western firms. From intensive interviews with marketing professionals, we find that the lack of credibility of market information is a crucial factor that undercuts the influence of the marketing department. The results of our questionnaire survey indicate that the credibility of market information has a more positively significant effect on market orientation than does marketing influence.
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