"Technology Transfer and Adaptation to Local Conditions: Multinationalization of the Japanese Chemical Industry and the Case of Kao"

Firms transfer its resources in the process of international expansion. In this paper, we will examine the process of transferring technology. In our research framework, the term 'transfer' includes 'adaptation' to local condition. The company which suceeded in international business must have pursuited this 'adaptation' and 'adaptation' must be consist with global efficiency. To show some evidences for this idea, we will take a case of a Japanese chemical company, Kao. Kao has standardized its production functions for efficient overseas expansion. Kao, though, has differentiated marketing, development, and personnel management to adapt to the business environment in the market it was entering. The historical case of Kao's overseas expantion is rather rapid and its decision-making was centralized, but in the local subsideries, the process of learning --how to adapt local condition among strong rivals-- was developed.