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Knowledge Drivers of Japanese Foreign Direct Investment Location

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Knowledge Management in Organizations (KMO 2019)

Part of the book series: Communications in Computer and Information Science ((CCIS,volume 1027))

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Abstract

With rising globalization, several countries have been expanding outside their borders through not only trade, but also foreign direct investment. In doing so, they establish subsidiaries in little-known distant countries where they must overcome knowledge gaps to be successful.

This research examines some knowledge-related factors that affect the state location choices of Japanese investors when they established affiliates in the United States between 2003 and 2017. The results, constructed from an original database, showed that Japanese foreign direct investment favor states that are closer to Japan and with more direct flight access, which have higher industry concentration, and in which more Japanese firms are already located. These findings suggest that beyond economic considerations, Japanese firms select locations considered to be superior sources of knowledge, knowledge spillovers, and learning for foreign direct investment.

These results are specific to Japanese investments in the United States over the past 15 years which tend to be concentrated in manufacturing and IT industries.

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Author information

Authors and Affiliations

  1. Graduate School of Business Sciences, University of Tsukuba, Tokyo, Japan

    Remy Magnier-Watanabe

  2. Weatherhead Center for International Affairs, Program on US-Japan Relations, Harvard University, Cambridge, MA, USA

    Remy Magnier-Watanabe

Authors
  1. Remy Magnier-Watanabe
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Correspondence to Remy Magnier-Watanabe .

Editor information

Editors and Affiliations

  1. University of Staffordshire, Stoke-on-Trent, UK

    Lorna Uden

  2. National University of Kaohsiung, Kaohsiung, Taiwan

    I-Hsien Ting

  3. University of Salamanca, Salamanca, Spain

    Juan Manuel Corchado

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Magnier-Watanabe, R. (2019). Knowledge Drivers of Japanese Foreign Direct Investment Location. In: Uden, L., Ting, IH., Corchado, J. (eds) Knowledge Management in Organizations. KMO 2019. Communications in Computer and Information Science, vol 1027. Springer, Cham. https://doi.org/10.1007/978-3-030-21451-7_17

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  • DOI: https://doi.org/10.1007/978-3-030-21451-7_17

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-030-21450-0

  • Online ISBN: 978-3-030-21451-7

  • eBook Packages: Computer ScienceComputer Science (R0)

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