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Rolling Out the Green Carpet from Stockholm to Shibuya: Exploring How Swedish Companies Leverage Sustainability and Digitalization in Japan

Torell, Lovisa LU and Spens, Emilie LU (2025) MIOM05 20251
Department of Mechanical Engineering Sciences
Production Management
Abstract
From a market perspective, Japan is interesting for Swedish companies, especially those with sustainable and digital capabilities. However, the Japanese market is complex, with high quality demands and deep relationships, which require foreign companies to understand how their assets transfer locally. This thesis explores how ten Swedish subsidiaries in Japan use sustainability and digitalization as competitive tools. The study is based on qualitative case studies across four industries and follows an abductive approach. The findings show that Swedish companies enter Japan primarily due to market potential, but many also seek strategic anchoring to strengthen operations and local relationships. Most companies begin with exports before... (More)
From a market perspective, Japan is interesting for Swedish companies, especially those with sustainable and digital capabilities. However, the Japanese market is complex, with high quality demands and deep relationships, which require foreign companies to understand how their assets transfer locally. This thesis explores how ten Swedish subsidiaries in Japan use sustainability and digitalization as competitive tools. The study is based on qualitative case studies across four industries and follows an abductive approach. The findings show that Swedish companies enter Japan primarily due to market potential, but many also seek strategic anchoring to strengthen operations and local relationships. Most companies begin with exports before establishing a subsidiary, following a gradual internationalization path. Larger subsidiaries in Japan tend to have more autonomy, though high local adaptation is required across industries. Soft capabilities like communication and service are frequently adapted to meet Japanese expectations and some companies also adjust products or solutions. Digitalization is more widely leveraged as a competitive advantage than sustainability and is especially impactful when tied to automation and efficiency. Sustainability is more frequently used when translated into tangible benefits, like functionality, efficiency and affordability. Both sustainability and digitalization are expected to grow in importance. Swedish companies differ from local competitors by incorporating both digital and sustainable capabilities into their core business, rather than treating them as add-ons. This integration builds trust and credibility in Japan’s conservative market. (Less)
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author
Torell, Lovisa LU and Spens, Emilie LU
supervisor
organization
course
MIOM05 20251
year
type
H2 - Master's Degree (Two Years)
subject
keywords
Case Study, Digitalization, Sustainability, Competitive Advantage, Transfer of Firm Assets, Adaptation, Communication, Establishment, Japan, Maturity, Swedish Subsidiaries, Twin Transition
other publication id
25/5317
language
English
id
9201143
date added to LUP
2025-06-18 11:56:24
date last changed
2025-06-18 11:56:24
@misc{9201143,
  abstract     = {{From a market perspective, Japan is interesting for Swedish companies, especially those with sustainable and digital capabilities. However, the Japanese market is complex, with high quality demands and deep relationships, which require foreign companies to understand how their assets transfer locally. This thesis explores how ten Swedish subsidiaries in Japan use sustainability and digitalization as competitive tools. The study is based on qualitative case studies across four industries and follows an abductive approach. The findings show that Swedish companies enter Japan primarily due to market potential, but many also seek strategic anchoring to strengthen operations and local relationships. Most companies begin with exports before establishing a subsidiary, following a gradual internationalization path. Larger subsidiaries in Japan tend to have more autonomy, though high local adaptation is required across industries. Soft capabilities like communication and service are frequently adapted to meet Japanese expectations and some companies also adjust products or solutions. Digitalization is more widely leveraged as a competitive advantage than sustainability and is especially impactful when tied to automation and efficiency. Sustainability is more frequently used when translated into tangible benefits, like functionality, efficiency and affordability. Both sustainability and digitalization are expected to grow in importance. Swedish companies differ from local competitors by incorporating both digital and sustainable capabilities into their core business, rather than treating them as add-ons. This integration builds trust and credibility in Japan’s conservative market.}},
  author       = {{Torell, Lovisa and Spens, Emilie}},
  language     = {{eng}},
  note         = {{Student Paper}},
  title        = {{Rolling Out the Green Carpet from Stockholm to Shibuya: Exploring How Swedish Companies Leverage Sustainability and Digitalization in Japan}},
  year         = {{2025}},
}