Nonmarket Strategy in Japan : How Foreign Firms Lobby “Inside the Castle”

"This book focuses on foreign firms' nonmarket strategies and lobbying in Japan, in which important readjustments in traditional power configuration have taken place, giving more leeway to various stakeholders. The author analyzes in-depth how firms deploy their influence in a country that used to be dubbed "the castle" due to its difficulty of access, a theme on which minimal information currently exists. As professionals acknowledge, and contrary to what is usually assumed, similarities with the United States or the European Union outweigh local differences that though must still be addressed are no longer insuperable. With globalization and the rise of economic interdependence, it is now easier for foreign players with valuable assets to be part of the game. A significant feature of the country is the weight of collective action and the reluctance towards individual or direct lobbying as reflected in the perceptions and firms' organization. The consequence for foreign firms is that they are often compelled to circumvent with soft strategies. This book will take the reader over 20 cases that display a striking multiformity and highlight conditions for success for foreign businesses in Japan and will be of interest to scholars as well as practitioners. Eric Romann is a professor at the Japan University of Economics, specializing in international business, strategic management, and international politics with a particular focus in their mutual articulation. He joined the academic world after a career in the Japanese think tank Daiwa lnstitute of Research. As the Paris office's manager, he was in charge of economics and politics in the EU and Euro Area, and also of the banking sector and capital markets" Abstract Acknowledgments Contents Abbreviations List of Japanese Terms List of Figures List of Tables Chapter 1: Introduction 1.1 Nonmarket Strategy, Influence, Lobbying: Laws Fall from Heaven? 1.2 Why a Study About Nonmarket in Japan: Inside the Castle? 1.3 The Substance of This Book: A Multiformity of Strategies Leaning on the Cooperative Side 1.4 Structure of the Book References Chapter 2: How to Approach Nonmarket Strategy and Corporate Political Activity 2.1 Introduction 2.2 Definitions and Taxonomy 2.3 Short Literature Review and Theoretical Approach 2.4 How to Analyze CPA in a Theoretical as Well as a Practical Perspective 2.4.1 Main Threads and Ideas 2.4.2 The 2 Transversal Dimensions: Influence and Coalition 2.4.2.1 Power and Influence: The Pressure/Persuasion Dimension and the Balance of Influence 2.4.2.2 Representativeness/Credibility: The Balance of Coalition (Individual, Coalition or Collective Action) 2.5 Conclusion References Chapter 3: Framework 3.1 Introduction 3.2 The 3 Main Drivers 3.2.1 Institutions 3.2.2 Issues 3.2.3 Interests 3.3 The Industry-Specific Factors 3.4 Political Resources 3.5 Process and Tactical Building Block Approach 3.5.1 CPA as a Process 3.5.2 Access and Influence 3.5.3 Tactical Building Blocks 3.5.3.1 Targets 3.5.3.2 Arguments 3.5.3.3 Technics 3.6 Dynamic of Factors’ Evolution 3.7 Conclusion References Chapter 4: General Features of Domestic Lobbying in Japan 4.1 Introduction 4.2 Japan Inc., Corporatism or Pluralism? 4.3 Institutional Characteristics in Light of the Differences with the US/EU and Implications for CPA 4.3.1 The Diet, the Bureaucracy, and the Parties/the LDP 4.3.2 Data on Venue Selection by Interest Groups 4.3.3 The Advisory Committees (Shingikai) and the Regulatory Reform Council (Kisei Kaikaku Kaigi) 4.3.4 The Role of the METI in CPA 4.4 CPA Patterns, Business-Government Relationships, and Political Strategies 4.4.1 Coalition Building and Collective Action 4.4.2 Direct Lobbying 4.4.2.1 Specificities for Foreign Firms 4.5 Perceptions 4.6 Organizational Aspects and the Shôgai Sections 4.7 Financial Contributions and Transparency 4.8 Conclusion References Chapter 5: The Context for Foreign Firms: Trade, Investment, and Business Issues 5.1 Introduction 5.2 Major Issues for Foreign Firms in Japan 5.2.1 Demands from Business Communities and Governments 5.2.1.1 In the Past: A Selection of Themes from EBC 2000/2001 and ACCJ 2001 White Papers 5.2.1.2 Now: Non-tariff Measures in Treaty Negotiations (EPA/FTA, TPP), Cross-sectoral Issues 5.2.2 A Focus on Non-tariff Measures (NTMs) 5.3 Evolution in Time and Changing Paradigm 5.3.1 A Brief History of the US–Japan Intergovernmental Economic Relations 5.3.2 The ACCJ Approaches Through Time in the Context of Intergovernmental Negotiations 5.3.3 About the Role of Gaiatsu (External Pressure) 5.3.4 Final Remarks: A Shift to Persuasion and Collaboration 5.4 Conclusion References Chapter 6: Case Study 6.1 Introduction 6.2 Issues 6.2.1 Categorization of Issues by Strategic Feature 6.3 Institutions and Interests 6.4 Political Resources 6.5 Tactical Building Blocks 6.5.1 Arguments 6.5.2 Technics 6.6 Balance of Coalition: What Allies, with Whom? 6.6.1 Routes and Strategies: Vectors for Conveying Voice 6.6.2 Criteria of Positioning in the Balance of Coalition 6.6.3 Synthesis of the Analysis of the Balance of Coalition 6.7 Balance of Influence: How, What Stance, with What Resources Wield Influence? 6.7.1 Criteria of Positioning in the Balance of Influence 6.7.2 Synthesis of the Analysis of the Balance of Influence 6.7.3 Examples of Influence: VW and ABB, Pressure and Persuasion 6.8 The Outcomes 6.9 Conclusion References Chapter 7: Implications for Business Strategy and Lessons from Japan in a Global Business Perspective 7.1 Introduction 7.2 Meaning of Japan in Firms’ Global Strategy and Role of CPA as a Strategic Tool: Lessons from the Case Study 7.2.1 Creating a New Business Framework: Conditions of Market Existence/Entry 7.2.2 Boosting Sales/Enhancing Business 7.2.3 Reducing or Neutralizing Threats for Business 7.2.4 Support for Investment Decision-Making 7.2.5 Norms and Rule Setting 7.2.6 Global Strategy, Meaning of Japan, and Other Considerations 7.3 Specificities of CPA in Japan for Foreign Firms, Conditions of Success, Lessons for Firms in Japan and Globally 7.3.1 Specificities of CPA in Japan for Foreign Firms 7.3.2 Conditions of Success and Lessons for Foreign Firms in Japan 7.3.3 Persuasive Facet for Global Business and Lobbying as an Extension of Marketing by Other Means 7.4 Assessment and Theoretical Considerations 7.4.1 About the RBV/VRIO, Extension to Political Science and Bases of Influence 7.4.2 Does CPA Lead to a Sustainable Competitive Advantage, and are There Preferable Strategies? 7.5 Linking Resources, Forms of Influence, and Business Strategies 7.5.1 Recapitulation 7.6 Conclusions References Chapter 8: General Conclusion 8.1 Addressing the Research Question: Informational Value Filling a Gap 8.2 General Impression: Low Key 8.3 Similarities Outweigh Differences, with Specificities 8.3.1 Specificities of Foreign Firms 8.4 Topics for Foreign Firms at Macro and Industry Level 8.5 Conditions of Success in Japan 8.6 Lessons and Theoretical Contributions 8.6.1 A Framework: Comprehensive and Workable, for Analysis and Practice 8.6.2 Drivers of CPA 8.6.3 Relationship between Resources, Forms of Influence, and Business Objectives 8.6.4 For Successful Influence in a Global Business Situation References Chapter 9: Annexes 9.1 Summary of Cases Classified by Implication for Business Strategies 9.1.1 Creating a New Business Framework: Conditions of Market Existence/Entry 9.1.1.1 GE Smart Meters 9.1.1.2 Hartford 9.1.1.3 MC Decaux 9.1.1.4 Animal Vaccine 9.1.1.5 Rhone Merieux 9.1.1.6 Utility Firm A 9.1.1.7 Western Union 9.1.2 Boosting Sales/Enhancing Business 9.1.2.1 Nicorette 9.1.2.2 Hepatitis C 9.1.2.3 UPS 9.1.2.4 DHL Scanner 9.1.2.5 O157 9.1.2.6 Car Repair Shops 9.1.3 Reducing or Neutralizing Threats for Business 9.1.3.1 GE lands 9.1.3.2 Delta 9.1.3.3 Pay Pal 9.1.3.4 NACCS System 9.1.4 Support for Investment Decision-Making 9.1.4.1 Fluoride 9.1.5 Norm and Rule Setting 9.1.5.1 ABB 9.1.6 Global Strategy, Meaning of Japan, and Other Considerations 9.1.6.1 VW Airbags References Index