Kubota board director who investigated the suit also resigned. The lawsuit was complicated because of Kubota's contention that both cochairmen offered to resign from Stardent, sell their stock, and not bring any lawsuits in return for five-year consulting contracts worth $3.5 million each. Kubota apparently rejected the offer. The lawsuit and Stardent's subsequent failure may have a chilling effect on Japanese investments and acquisitions in U.S. high-tech companies.

The failure of Stardent shows that investments in U.S. high-technology companies do not always pay off for Japanese companies, but Kubota's goals and expectations for its U.S. alliances go beyond short-term financial considerations. Alliances are designed to help Kubota build new technical competences in support of an integrated diversification strategy. Even when ventures fail, Kubota and other Japanese companies pursuing similar strategies retain the competence and ability to use the technology.

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