Economics & Finance / Business & Management / Corporate Strategy & Governance

Japan's Global Giants: Why They Sacrifice Profits for Market Share (1977-1993)

J. Michael Geringer, Stephen Tallman, David M. Olsen

Think global expansion always boosts profits? Think again. A deep dive into a 17-year study of 108 Japanese manufacturing giants reveals a shocking paradox: overseas sales actually hurt profitability. These companies, from electronics to transport, systematically sacrificed short-term earnings to grab market share. We break down the three distinct strategic periods—from the export boom to the bubble economy and its collapse—showing how macro shifts, not just strategy, dictated success. Discover why Western profit-first logic fails to explain Japan's corporate endurance, and learn the hidden costs of over-internationalization. This is based on research by J. Michael Geringer, Stephen Tallman, and David M. Olsen, published in the Strategic Management Journal.