Theories of growth for firms have suggested that slow managerial growth is a major constraint
why firms cannot grow faster. This paper is built on such a view and explores the factors that
may influence the growth rate of Japanese firms in a given US industry. It is found that
Japanese firms that allocated more internal and international managerial resources (proxied
by expatriates) to their US operations tended to achieve higher growth rates. Japanese firms
that were geographically diversified and those that spread their international investment
projects evenly over time also achieved higher growth rates.