Regional Learning Networks: Evidence from Japanese MNEs in Thailand and Australia

Japanese firms have been depicted as ‘learning organizations’, with regional governments implementing incentives regions to attract Japanese multinational enterprises (MNEs).To test for regional learning networks, firm-specific surveys were undertaken of Japanese subsidiaries in Thai and Australian manufacturing and Japanese parent investment decisions in Southeast Asia, Australia, China and the EU.Japanese parents regionalized their investment decisions, treating Australia and Southeast Asia as different investment regions. Further, regional networks were created. For both Australia and Thailand, Japanese buyers established regional networks when parent B2B know-how was transferred to their Thai and Australian subsidiaries, and when Australian and Thai-based subsidiaries implemented B2B pre and post-contractual practices with indigenous suppliers.There was no evidence that experienced and large size Japanese MNEs learned from these regional subcontracting networks.