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An overseas business paradox: Are Japanese general contractors risk takers?

Japanese industries have struggled with stagnation after the collapse of bubble economy in the 1990s. Such a financial crisis has led to overseas business expansion of Japanese industries. This study empirically examines Japanese general contractors’ overseas operations over the post-bubble period i...

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Detalles Bibliográficos
Autores principales: Mutoh, Taichi, Kotani, Koji, Kakinaka, Makoto
Formato: Online Artículo Texto
Lenguaje:English
Publicado: Public Library of Science 2020
Materias:
Acceso en línea:https://www.ncbi.nlm.nih.gov/pmc/articles/PMC7485813/
https://www.ncbi.nlm.nih.gov/pubmed/32915823
http://dx.doi.org/10.1371/journal.pone.0238570
Descripción
Sumario:Japanese industries have struggled with stagnation after the collapse of bubble economy in the 1990s. Such a financial crisis has led to overseas business expansion of Japanese industries. This study empirically examines Japanese general contractors’ overseas operations over the post-bubble period in relation to their financial status. The result shows that general contractors facing financial distress expand overseas business aggressively, when the domestic market shrinks. This result is opposite to conventional wisdom that stronger entities expand their territories of operations, thus “overseas business paradox.” However, it can be considered a new scenario of industries’ evolution when a country’s economy matures.