Transferring Competitive Advantage across Borders: A Study of Japanese Auto Transplants in North America
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Abstract
Abstract Countries differ in their underlying organizing principles of work. These principles develop within the confines of a local trajectory, and differences are eliminated more slowly across than within national or regional boundaries (Kogut, 1991). Furthermore, localized learning can lock countries into suboptimal trajectories (Stiglitz, 1987). As a result, companies in some countries may possess advantages over those in other countries-advantages that do not diffuse naturally across national or regional borders. One means by which such advantages can be transferred across national borders is foreign direct investment (FDI).