Domestic Competitive Position and Export Strategy of Japanese Manufacturing Firms: 1971–1985

Abstract

This paper analyzes Japanese manufacturing firms' export behavior and their performance. In a slow growth era, leading firms' and minor firms' export ratio tended to be less than that of follower (medium market share) firms in the same industry; there appears to be an inverted-U shape between export ratio and relative size of firms. An affiliation with a large industrial group has no positive relationship with export ratio, while other firm-specific factors do not show consistent relationships with it in the years 1971 to 1985. Exports and firm performance do not have a positive relationship. Competitive environment in the domestic market is related to the export strategy of Japanese firms.