The Internationalisation of Japanese Professional Business Services - Recent Developments and Future Prospects in Asia

Abstract

Although Japan is one of the world's largest economies its service sector is less developed than that of other industrialised countries and the sector also lags behind in terms of internationalisation. Research has suggested several explanations to the current state of the sector, but there are also indications that the sector slowly is catching up. This study is concerned with the development of Japanese professional business services (PBS) in the light of structural changes in the Japanese economy as well as an increasing importance of services in Asia. Using a multiple-case study methodology based on semi-structured interviews, this study attempts to expand our understanding on the evolving nature of Japanese PBS rms. In particular the study makes an attempt to explain how structural changes in the Japanese economy have a ected the internationalisation of Japanese PBS rms. An attempt is also made to assess the future prospects of the Japanese PBS in Asia. The ndings suggest that structural changes in the Japanese economy have had a limited impact on the internationalisation of Japanese PBS rms, but internationalisation is an important issue. Government interference, underlying structures in society, languages issues and cultural di erences still signi cantly inhibit the internationalisation of Japanese PBS rms. However, Japanese PBS rms hold competitive advantages in serving Japanese clients. Therefore, Asia provides the best environment for future development of the Japanese PBS industry, because many Japanese rms have operations in the region. Major urban cities in the region will provide access to both markets and important business networks. Establishing connections to new non- Japanese business networks will be challenging given di erences in language in cultures. Therefore, employment and successful management of local sta will be essential.