Thailand and Japan have long been developing an economic relationship. Japan is the largest foreign direct investor in Thailand, particularly in the automobile industry, which is considered a key industry of Thailand. Many Japanese automobile manufacturers have indicated their commitment to use Thailand as their export hub into this region (Techhakanon, 2004). It is inevitable that the development of a parts supplier industry is needed, particularly since the establishment of the Japan-Thailand Economic Partnership Agreement (JTEPA). This need also has been influenced by the changing structure of the automobile industry, in that parts are now produced not only to use for Thailand but also for global part sourcing. Thus, understanding how to develop local suppliers is crucial for the mutual benefit of both parties: Japanese manufacturers and Thai local suppliers. This concerns how Japanese and Thais can bridge the cultural differences between when working together. Expatriates often have very important roles in managing overseas subsidiaries, and the roles often are complicated (Petison, 2007). They not only act as a “coach” or “commander” in transferring skills and training their subordinates, but also build networks, which are very crucial for the changing business environmental (Petison and Johri, 2007). It is interesting to examine what cross-cultural problems may occur when Japanese expatriates adopt these new roles, and how to bridge the cultural gap to allow Japanese expatriates and local staff to work in harmony. This study is performing a detailed case analysis of each company’s policy for developing local suppliers and how the policy is transformed into practice. To obtain detailed, valid, and reliable information, in-depth interviews will be conducted with Japanese expatriates and local supplier employees who work directly with Japanese expatriates as well as with Thai employees of automobile companies who work in coordination with Japanese expatriates in the process of developing local suppliers. Further, an observation technique will be adopted to allow the researcher to develop more insightful information and experience regarding how Japanese expatriates work in developing networks with local suppliers. A survey will be conducted to examine the different perceptions of Japanese and Thais and how they relate to culture. Then results from both qualitative and quantitative approaches will be integrated. Tentatively, four key automobile manufacturers have been selected for study: Toyota Motor Thailand Co. Ltd. (TMT), Hino Motors (Thailand) Ltd. (HMT), Honda Automobile (Thailand) Co., Ltd. (HATC) and Isuzu Motors Co., (Thailand) Ltd. (IMCT). Further, 25 local suppliers that work with these four companies will be selected for this study.