Pre-clusterization in Emerging Markets: The Toyota Group's Entry Process in China

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Drawing on network analysis and informing the internationalization process of Japanese firms, this study introduces an ad hoc entry strategy, termed ‘pre-clusterization’. Unlike conventional keiretsu firms, competitive suppliers in a well-integrated network can enter a new market and begin clustering in a location that the core firm targets before the full entry of the core firm. The process of pre-clusterization is illustrated using a case study of the Toyota Group in China. A number of testable propositions are presented. Findings reveal the importance of strategic collective actions when coping with intensive competition and uncertainty in emerging market contexts.
Original languageEnglish
JournalAsia Pacific Business Review
Issue number3
Pages (from-to)369-387
Number of pages19
Publication statusPublished - 2009
Externally publishedYes


  • Automotive industry
  • Internationalization process
  • Network-based market entry
  • Pre-clusterization
  • Speed of capacity building

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