US-CROSS-BORDER ACQUISITIONS BY JAPANESE FIRMS LESSONS TO BE LEARNED FROM THE LATE 1980s
This research analyzes two Japanese acquisition waves to the US, one from the 1980s and the other recent one, still ongoing today. Both acquisition waves are analyzed by using institutionalization theory and management fashion research to explain these trends. For the 1980s, the numbers of articles related to Japanese acquisitions were counted in two of the leading US-newspapers and parallel ties were found to the number of deals. Compared to the 1980s, the public opinion of Americans against Japanese takeovers becomes positive. While many American in the 1980s saw Japanese firms as a threat, nowadays Japanese direct investment is seen in more favorable ways. However, Japanese firms’ behavior of acquiring US targets does not seem to have changed since the late 1980s. Furthermore, lately not only the number of the deals but also the amount of payment increased (compared to the data of late 1980s).
Abrahamson, E. (1991), ‘Managerial Fads and Fashions: The Diffusion and Rejection of Innovations,’ Academy of Management Review, 16, 586–612. DOI: https://doi.org/10.5465/amr.1991.4279484
Abrahamson, E. (1996), ‘Management Fashion,’ Academy of Management Review, 21, 254–285. DOI: https://doi.org/10.5465/amr.1996.9602161572
Abrahamson, E., and Fairchild, G. (1999), Management Fashion: Life Cycle, Triggers, and Collective Learning Processes,’ Administrative Science Quarterly, 44, 708–740. DOI: https://doi.org/10.2307/2667053
Adelson, A. (1988) Talking Deals; More Japanese Investing in U.S. The New York Times. February 18, Section D, p. 2.
Andrews, N. (1988) Company News. Tandy in PC Deal With Matsushita. The New York Times. November 15, Section D; Page 5, Column 1
Bebenroth, R. and Thiele, K.O. (2015) When Organizational Justice Matters for Affective Merger Commitment, Discussion Paper Series, Kobe U. No. 22, 30 p.
Cartwright, S. and Schoenberg, R. (2006) Thirty years of mergers and acquisitions research: Recent advances and future opportunities. British Journal of Management 17(S1): S1–S5. DOI: https://doi.org/10.1111/j.1467-8551.2006.00475.x
Chira, S. (1988) Japan's New Goal: U.S. Companies. The New York Times. April 27. Page 1, Column 3.
DiMaggio, P.J., and Powell, W.W. (1983), The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields, American Sociological Review, 48, 147–160. DOI: https://doi.org/10.2307/2095101
Directors & Boards (1990) The dilemma of Japanese investment. (who owns corporate America). Spring90, Vol. 14 Issue 3, p52-52. 1p.
Ellis, K. M., Reus, T. H., & Lamont, B. T. (2009). The effects of procedural and informational justice in the integration of related acquisitions. Strategic Management Journal, 30(2), 137-161. DOI: https://doi.org/10.1002/smj.728
Fensom, A. (2015). Strategy Key as Japan’s M&A Market Takes Off. Market Trends. American Chamber of Commerce Japan Journal, pp. 22-23. Internet http://journal.accj.or.jp/strategy-key-asjapans-ma-market-takes-off/, accessed on Nov. 6th 2015.
Gerlach, M.L. (1992) Alliance capitalism: The social organization of Japanese business University of California Press, Berkeley (1992)
Immigration Bureau Japan (2015) Statistics on Foreigners. Internet, http://www.moj.go.jp/housei/toukei/toukei_ichiran_touroku.html, accessed on Aug. 22nd 2016.
Japan Times (2017) Nomura to hire more U.S. bankers to capture bigger share of overseas dealmaking. Internet: https://www.japantimes.co.jp/news/2017/04/14/business/corporate-business/nomura-hire-u-sbankers-capture-bigger-share-overseas-deal-making/#.WgvMbWdryzk. Accessed on Nov. 15th 2017.
Kahn, S. (2015). Why M&A Is Different in Japan. Internet: http://www8.gsb.columbia.edu/chazen/globalinsights/node/277, accessed on Nov. 6th 2015.
Knilans, G. (2009). Mergers and acquisitions: Best practices for successful integration. Employment Relations Today, 35(4), 39-46. DOI: https://doi.org/10.1002/ert.20224
Lash (1991) Unwelcome imports, Racism, Sexism, and foreign Investment. Michigan Journal of Law, Fall 1991, 13, pp. 1-42.
Lee, Y. N. (2017). Global M&A activity is slowing, but Japanese firms are aggressively acquiring overseas. Download from internet. https://www.cnbc.com/2017/06/21/outbound-merger-andacquisition-deals-by-japanese-firms-are-growing-jpmorgan.html, accessed on Nov. 15th 2017.
Metzger, R.O and Ginsberg, A. (1989) Lessons from Japanese global acquisitions. Journal of Business Strategy, May-June, 1989, Vol.10(3), p.32(5) DOI: https://doi.org/10.1108/eb039307
Meyer, J.W., and Rowan, B. (1977), ‘Institutionalized Organizations: Formal Structure as Myth and Ceremony,’ American Journal of Sociology, 83, 340–363. DOI: https://doi.org/10.1086/226550
Milhaupt, C.J. (1994) Managing the Market: The Ministry of Finance and Securities Regulation in Japan. Stanford Journal of International Law. No. 423
Milhaupt, C. J. (2001). Creative norm destruction: The evolution of nonlegal rules in Japanese corporate governance. University of Pennsylvania Law Review, 149(6), 2083-2129. DOI: https://doi.org/10.2307/3312906
Mirc, N. (2014). Human impacts on the performance of mergers and acquisitions. Advances in Mergers and Acquisitions, 12, 1-31.
Muramatsu S. (2001) Foreign Capital and the Recent M&A Environment in Japan. In: Holzhausen A. (eds) Can Japan Globalize?. Physica, Heidelberg DOI: https://doi.org/10.1007/978-3-662-11285-4_8
Nevin, JJ. (1988) How For Foreign Investments fits into America. The New York Times. May 1, p. 11.
Newsweek (1989) What Americans Think of Japanese Business. Aug. 7th , 1989, p. 51.
Oyserman, D., Coon, H.M., and Kemmelmeier, M. (2002), ‘Rethinking Individualism and Collectivism: Evaluation of Theoretical Assumptions and Metaanalyses,’ Psychological Bulletin, 128, 3–72. DOI: https://doi.org/10.1037/0033-2909.128.1.3
Peng, M.W. (2008). Global business. Mason, OH: Cengage Learning/South Western.
Petersen, P. (1990) Japanese mergers and acquisitions in America: The deals and the dealmakers. Volume 2, Issue 1, March 1990, Pages 91-106
Raftery, W. A. (1980): First the Autos, Now the Parts. The New York Times. September 28, 1980, Section 3; Page 3, Column 1; Financial Desk
RECOF (2017) Merger and Acquisition Research Report. Tokyo: RECOF Corporation, several issues.
Sanger, D. (1990). THE WORLD: Japan's Shrewd New Investment Strategy. Moves Beyond Rockefeller Center and Pebble Beach. Internet: http://www.nytimes.com/1990/10/14/weekinreview/world-japan-s-shrewd-new-investmentstrategy-moves-beyond-rockefeller-center.html, accessed on Nov. 6th 2015.
Sekiguchi T. (2012) Theoretical implications from the case of performance-based human resource management practices in Japan: management fashion, institutionalization and strategic human resource management perspectives. The International Journal of Human Resource Management, Vol. 24, No. 3, February 2013, 471–486.
Sterngold, J. (1988) Market Place; Disappointments At Paine Webber. The New York Times. May 24, p. 8.
Swanson, A. (2015) China offers huge rewards for U.S. companies like Boeing. September 23rd, 2015 Wednesday 5:20 PM EST. Internet: https://www.washingtonpost.com/news/wonk/wp/2015/09/23/china-offers-huge-rewards-for-u-scompanies-like-boeing-but-it-could-also-take-away-their-business/ accessed on Aug. 11th 2016.
White, E.J. (1990) Japanese Companies and Transnational Mergers and Acquisitions. International Legal Perspectives, Vol. 2, Issue 2 (1990), pp. 51-60.
White, T. H. (1985): THE DANGER FROM JAPAN. The New York Times July 28, Section 6; Page 19, Column 1.
Zeitlin, M. (2012) Softbank’s Acquisition of Sprint Latest Big Japanese Buy. Internet. http://www.thedailybeast.com/articles/2012/10/16/softbank-s-acquisition-of-sprint-latest-bigjapanese-buy.html, accessed on Nov. 10th 2015.
Copyright (c) 2017 Ralf Bebenroth, Fay Chen
This work is licensed under a Creative Commons Attribution 4.0 International License.
License and Copyright Agreement
In submitting the manuscript to the journal, the authors certify that:
- They are authorized by their co-authors to enter into these arrangements.
- The work described has not been formally published before, except in the form of an abstract or as part of a published lecture, review, thesis, or overlay journal.
- That it is not under consideration for publication elsewhere.
- That its release has been approved by all the author(s) and by the responsible authorities – tacitly or explicitly – of the institutes where the work has been carried out.
- They secure the right to reproduce any material that has already been published or copyrighted elsewhere.
- They agree to the following license and copyright agreement.
Authors who publish with International Journal of Engineering Technologies and Management Research agree to the following terms:
- Authors retain copyright and grant the journal right of first publication with the work simultaneously licensed under a Creative Commons Attribution License (CC BY-SA 4.0) that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this journal.
- Authors can enter into separate, additional contractual arrangements for the non-exclusive distribution of the journal's published version of the work (e.g., post it to an institutional repository or edit it in a book), with an acknowledgment of its initial publication in this journal.
- Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) before and during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work.
For More info, please visit CopyRight Section