Case Studies Of Legitimacy Obtaining Strategy For Japanese Enterprises In China

If a company wants to survive and develop, they not only focus on efficiency, but also obey the legality principle. Only like this, the company can obtain the approval of government, public and stakeholder; that is to say the company is legal. For the Japanese multinational companies come to China for investment, only get corresponding legitimacy, its survival and development can be effectively guaranteed. Legitimacy theory scholars have pointed out: under the institutional environment constraints, due to the driving of legitimacy mechanism, the company should take appropriate legitimacy strategies to overcome the constraints of the institutional environment, and get the necessary resources for enterprise survival and development. In the transition economy, the changing institutional environment, on the one hand, provided the rare development opportunity for Japanese companies to invest in China, on the other hand, in some extent restricted the development of Japanese companies in China.This paper applied new institutionalism theory and organizational legitimacy theory to the study that Japanese companies in china acquire legitimacy strategy behavior and the institutional environment interaction. It took the strategic perspective of organization and management as a starting point, through taking the case study method to analyze in the transition economy that Japanese companies in China face system constraints, and the breakthrough legitimacy strategies adopted by the system constraints.In this study, firstly, it determined the research content and the overall framework by background introduction and theoretical overview. Then it laid the foundation for follow-up study by a review of new institutionalism theory and legitimacy theory in this paper, Next the case design of this study was introduced, and then three typical cases of Japanese enterprises in China were analyzed. First it introduced the three cases of development situation and system environment characteristics, and analyzed the institutional constraints they faced when they into our market. Next, the effect of institutional constraints on the legitimacy of the enterprise strategy of the three cases was studied. Through the information processing, when the three case companies faced the different institutional constraints, the corresponding legitimacy of access strategies was found. Research shows that in China’s economic transition, the three case companies mainly face regulation, norm and cognitive institutional constraints. These three institutional constraints forced three cases enterprise with strong demand of the legitimacy. In order to break through the institutional constraints, the three case companies adopted a breakthrough type strategy, innovative strategy and hybrid strategy to gain legitimacy, respectively. Finally, by the cross case analysis of the three cases, this paper built a general framework of Japanese corporate legitimacy acquisition strategy in China and put forward a relevant theoretical proposition.