Exploring the Regulatory and Institutional Challenges of Scandinavian Design Companies Upon Entering the Japanese Market: An International Business Study

Abstract

With Japan being the fourth largest economy, the market is both relevant and interesting. Together with the popularity of Scandinavian design in Japan, it is valuable to research the Scandinavian design companies and how they chose to enter the Japanese market. This study highlights the uniqueness of the Japanese market and explores the challenges that regulatory and institutional factors pose. Primary data were gathered through interviews with relevant representatives and secondary data were collected to complement the statements made by the interviewees. The study delves into the challenges such as hidden barriers, market-specific difficulties and the importance of connections. By using the Uppsala Models from 1977 and 2009, Rugman's Internationalization Theory, and Transaction Cost Theory, this study provides a deeper understanding of the complexities involved with conducting market entry into the Japanese market. The findings have shown how there are few regulatory barriers in Japan due to partnerships and agreements, however, institutional standards and practices are posing as obstacles for Scandinavian design companies. Despite a few barriers present, this study concludes that, with the right amount of money and time, Scandinavian design companies can overcome the barriers present.