Dear AIB members,

We are pleased to share the latest issue of Japan MNE insights newsletter
with you. Volume 4 (2018), Issue 2 is now available online ( and in PDF.
This issue includes two special essays, summaries of them are below.

*Hirofumi Tatsumoto, "Platform Strategy for Global Markets: The strategic
Use of Open Standards and the Management of Business Ecosystems" *

In a world being rapidly reshaped by digitalization and globalization, the
presence of platform firms is becoming increasingly conspicuous in global
markets. This book addresses two questions from theoretical and empirical
perspectives: Why do platform firms grow their global presence as open
standards internationally prevail?; and ii) How does the growing presence
of platform firms influence global industrial structures?

The answers this book presents can be summarized as follows.
i) Because a platform firm a) creates network effects advantageous to the
firm by actively engaging in the formation of open standards; b) gains
competitive advantage by positioning itself at the hub of transaction
networks and operating in between multiple markets and industries in
advanced and emerging countries; and c) seeks competitive advantage using
two-sided market and bundling strategies by managing relations with the
suppliers of complementary goods while implementing other strategies based
on a special market structure, a so-called “business ecosystem,” that has
many network effects among products.
ii) When a platform firm implements strategies a) to c) above, industries
in emerging countries are encouraged to catch up with the developed
countries. By doing so, they trigger a sudden transformation of the
structure of the international division of labor by accelerating a new
structure rather than reinforcing the existing structure (d)).
Although d) is a byproduct of strategies a) to c) above, this byproduct
matters more to many business practitioners and policymakers than the
platform strategies.

*Hajime Baba, "Evolution of International Marketing Study in Japan: From
Export Marketing to International Marketing Capability"*

Evolutional path of international marketing study varies depending upon the
research context in each country, especially in the early stage of
investigation. In the course of time, international marketing study in
Japan have experienced paradigm sifts because of the internationalization
of Japanese firms and the inflow of marketing knowledge mainly from the
U.S. This essay briefly reviews the evolution process of international
marketing study in Japan. First, this essay reviews early international
marketing study in Japan from the perspectives of trade practice theory and
Marxist view. Second, diversification of international marketing study is
described from late 1970s to 2000s. Third, current research agendas are
proposed in terms of dilemma of emerging market strategy and marketing
capability. Finally, some propositions are showed concerning international
marketing capability.

We hope that you will find this edition of the newsletter interesting.

With kind regards,

Dr. Tamiko Kasahara
Editorial member of Japan MNE Insights

University of Shizuoka, School of Management and Information
52-1 Yada, Suruga-ku, Shizuoka, 422-8526, Japan

TEL/FAX +81-54-264-5435
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