Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercising
AbstractBased on Real Options Theory and taking the perspective of growth options exercising, as well as Tobit model, this paper explores how Japanese enterprises adjust ownership structures in their affiliates as a portfolio in China. Empirical results show that: both demand uncertainty and industr...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Taylor & Francis Group
2023-12-01
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| Series: | Cogent Business & Management |
| Subjects: | |
| Online Access: | https://www.tandfonline.com/doi/10.1080/23311975.2023.2215563 |
| _version_ | 1797265233770708992 |
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| author | Hongru Liu Qiaoying Zhu |
| author_facet | Hongru Liu Qiaoying Zhu |
| author_sort | Hongru Liu |
| collection | DOAJ |
| description | AbstractBased on Real Options Theory and taking the perspective of growth options exercising, as well as Tobit model, this paper explores how Japanese enterprises adjust ownership structures in their affiliates as a portfolio in China. Empirical results show that: both demand uncertainty and industry growth opportunity in China enhance Japanese enterprises’ ownership expansion in their affiliates as a real option portfolio; Industry competition and capability to control and coordinate the affiliates strengthen the roles of uncertainty and industry growth opportunity play in enhancing Japanese enterprises’ ownership expansion within these affiliates as a portfolio. This paper enriches studies on growth options exercising and illustrates that the logic for real options establishing should not be simply and directly transplanted to real options exercising indiscriminately. Conclusions derived from this paper are of great significance for MNEs’ growth option exercising by adjusting ownership structures in their affiliates as a portfolio within a host country according to changes in the focal host market. |
| first_indexed | 2024-03-07T14:19:09Z |
| format | Article |
| id | doaj.art-261e828ae2a4410793e1cbc0613eb7d3 |
| institution | Directory Open Access Journal |
| issn | 2331-1975 |
| language | English |
| last_indexed | 2024-04-25T00:41:33Z |
| publishDate | 2023-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Business & Management |
| spelling | doaj.art-261e828ae2a4410793e1cbc0613eb7d32024-03-12T08:30:27ZengTaylor & Francis GroupCogent Business & Management2331-19752023-12-0110210.1080/23311975.2023.2215563Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercisingHongru Liu0Qiaoying Zhu1Business School, Henan Normal University, Xinxiang, Henan, ChinaBusiness Strategy, Regional and Economics, Henan Normal University, Xinxiang, Henan, ChinaAbstractBased on Real Options Theory and taking the perspective of growth options exercising, as well as Tobit model, this paper explores how Japanese enterprises adjust ownership structures in their affiliates as a portfolio in China. Empirical results show that: both demand uncertainty and industry growth opportunity in China enhance Japanese enterprises’ ownership expansion in their affiliates as a real option portfolio; Industry competition and capability to control and coordinate the affiliates strengthen the roles of uncertainty and industry growth opportunity play in enhancing Japanese enterprises’ ownership expansion within these affiliates as a portfolio. This paper enriches studies on growth options exercising and illustrates that the logic for real options establishing should not be simply and directly transplanted to real options exercising indiscriminately. Conclusions derived from this paper are of great significance for MNEs’ growth option exercising by adjusting ownership structures in their affiliates as a portfolio within a host country according to changes in the focal host market.https://www.tandfonline.com/doi/10.1080/23311975.2023.2215563Uncertaintygrowth opportunitycompetitioncontrol and coordination capabilityownership expansion |
| spellingShingle | Hongru Liu Qiaoying Zhu Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercising Cogent Business & Management Uncertainty growth opportunity competition control and coordination capability ownership expansion |
| title | Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercising |
| title_full | Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercising |
| title_fullStr | Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercising |
| title_full_unstemmed | Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercising |
| title_short | Ownership changes of Japanese affiliates in China: lessons from the perspective of growth options exercising |
| title_sort | ownership changes of japanese affiliates in china lessons from the perspective of growth options exercising |
| topic | Uncertainty growth opportunity competition control and coordination capability ownership expansion |
| url | https://www.tandfonline.com/doi/10.1080/23311975.2023.2215563 |
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