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Applying culture concept in overseas subsidiaries

...... Ishiguro explained that there may be a greater proportion of negatives than positives among Japanese companies attitudes toward Host Country National (HCN) managers. Ishiguro also wonders in the review why Japanese companies have been so inefficient in managing foreign subsidiaries. There are many negative stereotypes associated with Japanese management strategies, Ishiguro continues, and some are valid. For example, there is the lingering belief that Japanese companies try to force subsidiaries in HCNs to implement Japanese management practices.
There is also the perception that people from Japan do not understand local culture and people, which is not always the case; however Ishiguro suggests that Japanese companies could work harder toward the internationalization of their management. One thing that Japan has been accused of and there is some truth to this is that Japanese business people doing business in foreign placed subsidiaries do not understand local culture and people.
One thing Kelley mentions in the book that rings true in the world of Japanese subsidiaries is that Japanese management is often slow in entrusting plant management to local personnel, which may lead to low levels of profitability. For those Japanese companies that do indeed make an effort to promote