UNDERSTANDING JAPANESE DIRECT-INVESTMENT IN CHINA (1985-1993) - AN INTERCULTURAL ANALYSIS

Japanese private investors have recently established a remarkable pres ence in the Chinese economy. While the comparative performance of Japa nese direct investment can be attributed to managerial, economic, soci al and political factors, the present article shows that elements of J apanese culture have also played a role. An intercultural comparative analytical framework is developed. Aggregate data and survey reports s uggest that Japanese cultural factors have contributed to the performa nce of Japanese direct investment (1985-1993), relating to level, patt ern and managerial behavior. This study points to 1) the importance of having a comprehensive understanding of Japanese direct investment in cluding its cultural element, and 2) the necessity for the Western inv estors to pay close attention to the cultural aspect of a successful i nvestment in China.