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Withdrawal of overseas subsidiaries from Asia: the case of the Japanese food industry

Withdrawal of overseas subsidiaries from Asia: the case of the Japanese food industry PurposeThe purpose of this paper is to analyze the factors that have influenced the withdrawal of Japanese overseas food industry subsidiaries from Asia.Design/methodology/approachThe data refer to Asian subsidiaries of Japanese companies engaged in food production activities. The data set covers 545 overseas subsidiaries from 2003 to 2014, and the total number of observations is 3,513. A linear probability model examines the factors influencing the probability of a subsidiary withdrawing.FindingsThe results show that strong relationships between parent companies and overseas subsidiaries, specifically in terms of personnel and capital, reduce the likelihood of withdrawal. The number of years in business has a positive effect on withdrawal. Additionally, investment aims, such as the establishment of an international production network and acquisition of host country markets, affect the probability of withdrawal. The results are similar for subsidiaries in China and other countries, but there are differences regarding subsidiaries’ histories and investment aims.Originality/valueThere is limited research on food companies withdrawing from overseas markets. This study bridges the gap in the literature by compiling micro-level data and conducting a quantitative analysis of such withdrawals from overseas markets. The originality of this study is that it shows the effects of investment aims on subsidiary withdrawal, representing various aspects of overseas subsidiaries, and compares the estimation results with the recent trends in food markets in Asia. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png British Food Journal Emerald Publishing

Withdrawal of overseas subsidiaries from Asia: the case of the Japanese food industry

British Food Journal , Volume 119 (6): 15 – Jun 5, 2017

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References (22)

Publisher
Emerald Publishing
Copyright
Copyright © Emerald Group Publishing Limited
ISSN
0007-070X
DOI
10.1108/BFJ-08-2016-0357
Publisher site
See Article on Publisher Site

Abstract

PurposeThe purpose of this paper is to analyze the factors that have influenced the withdrawal of Japanese overseas food industry subsidiaries from Asia.Design/methodology/approachThe data refer to Asian subsidiaries of Japanese companies engaged in food production activities. The data set covers 545 overseas subsidiaries from 2003 to 2014, and the total number of observations is 3,513. A linear probability model examines the factors influencing the probability of a subsidiary withdrawing.FindingsThe results show that strong relationships between parent companies and overseas subsidiaries, specifically in terms of personnel and capital, reduce the likelihood of withdrawal. The number of years in business has a positive effect on withdrawal. Additionally, investment aims, such as the establishment of an international production network and acquisition of host country markets, affect the probability of withdrawal. The results are similar for subsidiaries in China and other countries, but there are differences regarding subsidiaries’ histories and investment aims.Originality/valueThere is limited research on food companies withdrawing from overseas markets. This study bridges the gap in the literature by compiling micro-level data and conducting a quantitative analysis of such withdrawals from overseas markets. The originality of this study is that it shows the effects of investment aims on subsidiary withdrawal, representing various aspects of overseas subsidiaries, and compares the estimation results with the recent trends in food markets in Asia.

Journal

British Food JournalEmerald Publishing

Published: Jun 5, 2017

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