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This research analyses potential changes within market entry strategies of
multinational companies (MNC) in Japan due to vanishing keiretsu. This structural
market change is being claimed to not only have tremendous impact on the
establishment chain of entering MNCs but also on their performance.
As a result of the literature review, it can be shown that foreign companies entered the
Japanese market by preferring an internationalization route of incremental increases
of commitment, i.e. verifying the establishment chain. Only one empirical study, which
tested the establishment chain as well as performance implications was identified.
Unfortunately, that specific study is outdated and does not cover the recent changes
(Hedlund and Kverneland, 1985), which is why more research is needed.
However, this empirical research aims to show whether MNCs are still following the
establishment chain or whether decreasing keiretsu networks led them to leapfrogging
behavior or initial foreign direct investments (FDI). Especially performance
implications are of key interest for both, researchers and managers. In order to test
hypotheses about the establishment chain and timing strategies, a sample of (currently)
335 German companies shall represent the research object.