Development of Southeast Asian motorcycle industry and contribution of Japanese firms

Résumé:

Purpose
This presentation clarifies the factors of the formation and development of the Southeast Asian motorcycle industry which was leaded by Japanese firms. The motorcycle industry in Southeast Asia is distinctive in that foreign-affiliated companies led the import substitution step by step based on incremental innovation, which is important as an industrialization pattern in the 21st century.

Design
This presentation will examine the Southeast Asian motorcycle industry from both micro and macro aspects such as macroscopic statistical data and micro enterprise behavior. More specifically, it is as follows. First, from a macroscopic point of view, we will clarify the import substitution process from customs statistics of motorcycle industry in Thailand, Vietnam and Indonesia. As a microscopic point of view, we will examine capacity building and innovation of Japanese firms from a dynamic capability building strategy theory. The behavior of Japanese firms is based on primary data obtained in author’s field work.

Findings
Firstly, from long-term customs clearance statistics, it became clear that in Thailand and Indonesia, the import substitution was gradually advanced under the protection of the government.

Secondly, the progress of import substitution is not necessarily uniform in all processes, parts and materials, but is limited in terms of depreciation costs, low technical difficulty, from parts with repair demand It showed progress.

Thirdly, Vietnam also showed that it was an import substitution process similar to Thailand and Indonesia.

Fourth, Vietnam has compressed it for about 10 years to about one third of the development period of Thailand and Indonesia.

Fifth, Thai and Indonesia showed that it takes time to build industries if only Japanese companies are involved.

Sixth, on the other hand, in Vietnam imports from China, which have price competitiveness to overcome the constraints of scale, entered from the industrialization stage.

Practical implications.
This research will show the import substitution process of durable consumer goods to those involved in the industrialization strategy planning of developing countries and it will be possible to plan an industrialization strategy more appropriate to actual situation.

In addition, this presentation will give business people a suggestion for the advance to developing countries and the subsequent on-site operation.