DIFFERENTIAL BEHAVIOR OF THE JAPANESE AFFILIATES IN THE INDIAN AUTOMOBILE SECTOR

The main objective of this study is to analyse the differential behavi our of the Japanese affiliates compared with the affiliates of non-Jap anese multinational enterprises (MNE) and unaffiliated Indian firms in the Indian automobile sector. Results from the step-wise discriminant analysis presented in this paper show that the conduct and performanc e of the Japanese affiliates differ significantly from those of the We stern MNE affiliates and unaffiliated Indian firms with respect to the following variables: in-house R&D, licensing of technology, import of capital goods and components, exports, advertisement expenditures, ca pital output ratio, profit margins, and employment policies. (C) 1998 Elsevier Science B.V.