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Internationalization of services at
Japanese manufacturing industry
Mohammadmurshed Kaji
mm_murshed@hotmail.com
Research Theme
1
(1) Self Introduction
2
 Japanese citizen of Bangladesh origin
 36 years old
 Came to Japan to attend University after completed High
School in 1994
 Completed Bachelor and Masters in Electronics &
Information Engineering from Tokai University in 1999 &
2001 respectively
 Completed M.B.A from University of Tsukuba in 2011
 Enrolled in Ph.D. program in Innovation and in Graduate
School of Innovation Management, Tokyo Institute of
Technology in 2012
 Transferred to California , USA in December 2012 by
company
 Have been working at Electronics and Semiconductor
Industry for 12 Years in Japan, Singapore & USA (from
2001~Now)
(1) Self Introduction
3
(2) Research Plan
“Internationalization of services at Japanese
manufacturing industry”
4
Research Plan Composition
(1)Research Motivation
(2)Literature Review
(3)Research Objectives
(4)Research Methodology
(5)References
5
 First, hands-on discovery
 By conducting MBA’s research which on Japanese
manufactures’ industries can not survive just making
high spec product
 Found manufactured goods often contain various type of
customer related services with them
 Second , unanswered questions
 The impact or influence of services on a manufacturing
firm’s foreign entry-mode choice in its
internationalization process at foreign countries
 How can “Internationalization of Service” of
manufactured goods contributes to the growth and
happiness of both developed (e.g. Japan) & developing
countries (e.g. Bangladesh)
Keywords: Entry modes; Internationalization; Embedded services in goods
(1)Research Motivation
6
The Condition of Japan’s Manufacturing Industries
 Manufacturing shares 25% of Japan’s GDP(1) &
responsible for 90% of Japan’s exports(2) but facing
severe competition from South Korea , China, Taiwan
 Products with high value services are "the future of Japan“
 Developing countries have increased their share of the
global GDP however are facing growing challenges in
-Infrastructure ( Transport , Communication, Utilities)
-Energy (Sustainable energy)
 However Japanese manufacturing industry has not fully
taken advantage of business opportunities for their value
added products & services in growth markets
(2) Literature Review
7
Global Trend
Basic premise:
energy use and growth are strongly linked
0
50
100
150
200
250
300
350
400
$0 $5'000 $10'000 $15'000 $20'000 $25'000 $30'000
GDP per capita, US$ 1995 ppp
EnergyUse,GJpercapita
EU-15
North America
Korea 1970-2000
Malaysia 1970-2000
China 1970-2000
Energy and Economic Development
Energy is a key
indicator of human
development.
"Energy is one of the areas that shows
most clearly the gap between the global
rich and the global poor, and the social and
economic inequities that result."
-Millennium Campaign
Source: WBCSD adaptation of IEA 2003 (3)
(2) Literature Review
The base of the
pyramid(BoP) is defined
as those with incomes
less than US $3,000 in
local purchasing power
8
Infrastructure and Economic Development
 World Development Report 2004 (4)
 On average, a 1% increase in infrastructure stock
is associated with a 1% increase in GDP.
 Calderon and Serven (2004) (5)
 An Panel data set of over 100 countries for the period
of 1960-2000.
 Growth is positively affected by the stock of infrastructure
assets
 Infrastructure development can be highly effective to
combat poverty
(2) Literature Review
Direct Linkage between Poverty Reduction and Infrastructure
9
Internationalization Process of Services in
Manufacturing Sectors
 Many Japanese Energy & Infrastructure related
manufactured products often contain client or customer
related services with them. However no research was done
to determine the factors that influence the entry mode of
Japanese manufacturing companies based on the degree of
services with the manufactured goods
 Also no research has been done on how important is
service to the when Japanese manufactures when they sold
their product in overseas
 There was no comprehensive informative system exists
between Japan & emerging countries for Japanese
companies’ products which provide useful and satisfactory
information , services to foreign customer & also provide
feedback to the Japanese makers
(2) Literature Review
10
Decision to
Internationalize
Equity Mode Non-equity Mode
Joint venture
Exporting
Non-Equity
Strategic Alliances/
Licensing Contracts
Wholly owned subsidiaries
Literature Review
 Foreign Mode of Entry Choices
Source : Peng, W. Mike., (2008) Global Business. Cengage Learning (6)
(2) Literature Review
11
Research Objectives
 Determine the degree and nature of services in manufactured
goods that plays role of Japanese firms internationalization
process by which way it will enter the market
 Determines the importance of services when Japanese
makers sold their products in overseas market
 Study the current situation & propose an the ecosystem
realized through “Internationalization of Service” of
manufactured goods contributes to the growth and happiness
of both developed countries and developing countries
(3) Research Objectives
12
1. Review the exiting literature (Review concepts and
theories, Review previous research finding)
2. Formulate hypotheses
3. Make strategy for data collection
4. Collect data(Execution) by using Desk research,
qualitative (expert interviews, surveys, Delphi Method) &
quantitative (questionnaires etc) methods on Japanese
makers’ internationalization of services for their products
5. Analyze data(Test hypotheses)
6. Interpret and report, Research Conclusion
Research Methodology
(4) Research Methodology
13
References
1. http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Japan.html
2 .Ministry of Economy Trade and Industry , July 2010,“Japan’s Manufacturing
Industry”,
http://www.meti.go.jp/english/policy/mono_info_service/overall/overview.pdf
3.. WBCSD adaptation of IEA 2003
4. World Development Report 2004
5. César Calderón; Luis Serven, 2004 :The effects of infrastructure development
on growth and income distribution,Washington, D.C. : World Bank, Latin
America and the Caribbean Region, Finance, Private Sector, and
Infrastructure Dept. and Office of the Chief Economist.
6. Peng, W. Mike., (2008) Global Business. Cengage Learning
(5) References
14

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Internationalization of services at Japanese manufacturing industry

  • 1. Internationalization of services at Japanese manufacturing industry Mohammadmurshed Kaji mm_murshed@hotmail.com Research Theme 1
  • 3.  Japanese citizen of Bangladesh origin  36 years old  Came to Japan to attend University after completed High School in 1994  Completed Bachelor and Masters in Electronics & Information Engineering from Tokai University in 1999 & 2001 respectively  Completed M.B.A from University of Tsukuba in 2011  Enrolled in Ph.D. program in Innovation and in Graduate School of Innovation Management, Tokyo Institute of Technology in 2012  Transferred to California , USA in December 2012 by company  Have been working at Electronics and Semiconductor Industry for 12 Years in Japan, Singapore & USA (from 2001~Now) (1) Self Introduction 3
  • 4. (2) Research Plan “Internationalization of services at Japanese manufacturing industry” 4
  • 5. Research Plan Composition (1)Research Motivation (2)Literature Review (3)Research Objectives (4)Research Methodology (5)References 5
  • 6.  First, hands-on discovery  By conducting MBA’s research which on Japanese manufactures’ industries can not survive just making high spec product  Found manufactured goods often contain various type of customer related services with them  Second , unanswered questions  The impact or influence of services on a manufacturing firm’s foreign entry-mode choice in its internationalization process at foreign countries  How can “Internationalization of Service” of manufactured goods contributes to the growth and happiness of both developed (e.g. Japan) & developing countries (e.g. Bangladesh) Keywords: Entry modes; Internationalization; Embedded services in goods (1)Research Motivation 6
  • 7. The Condition of Japan’s Manufacturing Industries  Manufacturing shares 25% of Japan’s GDP(1) & responsible for 90% of Japan’s exports(2) but facing severe competition from South Korea , China, Taiwan  Products with high value services are "the future of Japan“  Developing countries have increased their share of the global GDP however are facing growing challenges in -Infrastructure ( Transport , Communication, Utilities) -Energy (Sustainable energy)  However Japanese manufacturing industry has not fully taken advantage of business opportunities for their value added products & services in growth markets (2) Literature Review 7
  • 8. Global Trend Basic premise: energy use and growth are strongly linked 0 50 100 150 200 250 300 350 400 $0 $5'000 $10'000 $15'000 $20'000 $25'000 $30'000 GDP per capita, US$ 1995 ppp EnergyUse,GJpercapita EU-15 North America Korea 1970-2000 Malaysia 1970-2000 China 1970-2000 Energy and Economic Development Energy is a key indicator of human development. "Energy is one of the areas that shows most clearly the gap between the global rich and the global poor, and the social and economic inequities that result." -Millennium Campaign Source: WBCSD adaptation of IEA 2003 (3) (2) Literature Review The base of the pyramid(BoP) is defined as those with incomes less than US $3,000 in local purchasing power 8
  • 9. Infrastructure and Economic Development  World Development Report 2004 (4)  On average, a 1% increase in infrastructure stock is associated with a 1% increase in GDP.  Calderon and Serven (2004) (5)  An Panel data set of over 100 countries for the period of 1960-2000.  Growth is positively affected by the stock of infrastructure assets  Infrastructure development can be highly effective to combat poverty (2) Literature Review Direct Linkage between Poverty Reduction and Infrastructure 9
  • 10. Internationalization Process of Services in Manufacturing Sectors  Many Japanese Energy & Infrastructure related manufactured products often contain client or customer related services with them. However no research was done to determine the factors that influence the entry mode of Japanese manufacturing companies based on the degree of services with the manufactured goods  Also no research has been done on how important is service to the when Japanese manufactures when they sold their product in overseas  There was no comprehensive informative system exists between Japan & emerging countries for Japanese companies’ products which provide useful and satisfactory information , services to foreign customer & also provide feedback to the Japanese makers (2) Literature Review 10
  • 11. Decision to Internationalize Equity Mode Non-equity Mode Joint venture Exporting Non-Equity Strategic Alliances/ Licensing Contracts Wholly owned subsidiaries Literature Review  Foreign Mode of Entry Choices Source : Peng, W. Mike., (2008) Global Business. Cengage Learning (6) (2) Literature Review 11
  • 12. Research Objectives  Determine the degree and nature of services in manufactured goods that plays role of Japanese firms internationalization process by which way it will enter the market  Determines the importance of services when Japanese makers sold their products in overseas market  Study the current situation & propose an the ecosystem realized through “Internationalization of Service” of manufactured goods contributes to the growth and happiness of both developed countries and developing countries (3) Research Objectives 12
  • 13. 1. Review the exiting literature (Review concepts and theories, Review previous research finding) 2. Formulate hypotheses 3. Make strategy for data collection 4. Collect data(Execution) by using Desk research, qualitative (expert interviews, surveys, Delphi Method) & quantitative (questionnaires etc) methods on Japanese makers’ internationalization of services for their products 5. Analyze data(Test hypotheses) 6. Interpret and report, Research Conclusion Research Methodology (4) Research Methodology 13
  • 14. References 1. http://www.nationsencyclopedia.com/economies/Asia-and-the-Pacific/Japan.html 2 .Ministry of Economy Trade and Industry , July 2010,“Japan’s Manufacturing Industry”, http://www.meti.go.jp/english/policy/mono_info_service/overall/overview.pdf 3.. WBCSD adaptation of IEA 2003 4. World Development Report 2004 5. César Calderón; Luis Serven, 2004 :The effects of infrastructure development on growth and income distribution,Washington, D.C. : World Bank, Latin America and the Caribbean Region, Finance, Private Sector, and Infrastructure Dept. and Office of the Chief Economist. 6. Peng, W. Mike., (2008) Global Business. Cengage Learning (5) References 14