This book examines possibly the greatest challenge facing Japanese multinationals as they continue to expand their foreign direct investment: how to integrate local managers into the management process of overseas subsidiaries as well as in that of the parent companies themselves. In the majority of Japanese subsidiaries, management control has remained in the hands of Japanese managers at extremely high cost, but now Japanese firms are being forced to consider integrating local nationals, a process which may yield significant competitive advantage. For the first time, the author presents empirical data that clearly demonstrates the degree to which local nationals participate in decision making, and also offers useful insights into the aspects of Japanese culture and organizational behaviour that affect the integration of local managers. This book is a must-read for managers working for, or considering working for Japanese multinationals, Japanese managers and students and researchers in international human resource management.