Entry Mode Strategies and Performance of Japanese MNCs in Australia and New Zealand: the Role of Japanese Employees

Abstract

This study investigates different entry modes and staffing practices, and their influence on performance in Japanese subsidiaries in Australia and New Zealand.   Data from 275 Japanese subsidiaries were derived from the Toyo Keizai data bank of Japanese overseas investments (Kaigai Shinshutsu Kigyou Souran) for the period from 2003 to 2008.  The major assumption of this paper is that Japanese multinational corporations (MNCs) use their staffing policies as a means of exerting more influence on performance combined with other factors such as experience, industry, and the type of ownership. The study reveals that within the sample Japanese subsidiaries in Australia have a higher percentage of high performance companies than in New Zealand. The existence of Japanese employees, ownership and industry are shown as predictors of performance.

Keywords: Japanese multinational corporations, ownership, performance, staffing policies, Australia, New Zealand

JEL Classifications: G320, G340