Zhao / Wang / Gupta Multinational Corporation Subsidiaries in China

An Empirical Study of Growth and Development Strategy
1. Auflage 2012
ISBN: 978-1-78063-332-9
Verlag: Elsevier Science & Techn.
Format: EPUB
Kopierschutz: Adobe DRM (»Systemvoraussetzungen)

E-Book, Englisch, 264 Seiten

Reihe: Chandos Asian Studies Series

This comprehensive study examines the global strategies of multinational corporations (MNCs), the strategic evolution and the categories of their subsidiaries in China based on 150 MNCs. It is the first large-scale project of this nature to be conducted. The research has significant bearing on strategic planning for firms that have set up, are setting up or are planning to establish subsidiaries in China, and the firms that try to compete in the global marketplace. The findings are significant for the West, owing to the current economic crisis and the need to determine if subsidiary expansion strategies will help Western firms achieve the portfolio effects in operations and avoid the harmful impact of macro events such as the existing global financial crisis. Additional empirical findings, analysis, discussions, and suggestions for future studies are also presented. - Systemically reviews and summarizes the latest theories about MNCs' subsidiaries, analyzing the four main streams of research schools - Uses first-hand data from MNCs' subsidiaries of more than 20 industries from more than 10 countries including: USA, Japan, South Korea, and the European Union by way of two rounds of studies in 2001 and 2006 - Analyzes strategic evolvement models and evolution trends of subsidiaries of MNCs in China

Dr Jinghua Zhao is the Dean in the School of Government at the Central University of Finance and Economics in China. He holds a PhD. from Nanjing University and his research interests include strategy and government administration. Previously, Dr. Zhao has served as Dean for the Business School at Shandong University for 12 years and published more than 40 high quality journal articles and six books in strategy. His recent research focuses on MNC strategy and comparative study across borders.

Autoren/Hrsg.

Zhao, Jinghua

Wang, Jifu

Gupta, Vipin

Hudson, Tim

Leseproben

List of figures and tables
Figures
2.1. SWOT analyses for general business 15 2.2. Analytical model of MNC subsidiary strategy system 18 3.1. Three stages model for MNC product life cycle 28 3.2. History of US MNC development strategy 37 3.3. Model of US MNC development strategy 38 3.4. Model of Japanese MNC development strategy 40 3.5. Stage model of Stopford and Wells (1972) 49 3.6. Bartlett and Ghoshal’s (1989) chart of multinational organisations 49 3.7. Multinational organisation model 50 3.8. International organisation model 51 3.9. Global organisation model 51 3.10. Transnational organisation models 52 3.11. Control and coordinated model of Ghoshal and Nohria 58 3.12. Bartlett and Ghoshal’s classification of strategic task model 65 3.13. Jarillo and Martinez’s model of subsidiary roles 68 3.14. Role of node in knowledge flow 69 3.15. Taggart’s C–C subsidiaries strategy model 71 3.16. Evolution models of overseas subsidiaries 76 3.17. Factors affecting overseas subsidiary evolution 78 4.1. Flowchart of the empirical analysis 82 4.2. Conceptual analytical framework 83 5.1. MNC entry investment modes, n = 118 97 5.2. Classification of subsidiaries by perceived SWOT 114 5.3. Strategic trend 133 6.1. Integration and localisation indices by time of entry 151 6.2. Labour confrontations by perceived SWOT postures 177 7.1. Research model for growth and development strategy 195 7.2. Mechanism formulation elements 196 7.3. Map of MNC subsidiaries’ role evolution 205 7.3. S-SWOT analysis framework for MNC subsidiaries 209 7.5. Selection framework for overseas subsidiaries’ growth and development strategy 211 7.6. Overseas subsidiaries’ growth and development strategic system 214 Tables
3.1. MNC strategy evolution and MNC structures 34 3.2. Comparison of four MNC organisational models 53 3.3. Control of the parent company over subsidiaries’ operations 55 3.4. Control tools 57 3.5. Classification of control mechanism 59 3.6. Evolution of control mechanisms 61 3.7. Summary of studies on subsidiary roles 73 4.1. Sample characteristics 86 5.1. Growth and development factors 93 5.2. Growth indicators for MNC subsidiaries in China 93 5.3. Investment expansion motives for MNC subsidiaries in China 93 5.4. Items used for performance measures 94 5.5. Items used for competitive advantage 95 5.6. First entry method by time of entry, chi square test 98 5.7. First entry method by country 98 5.8. Average tenure by country 99 5.9. Present investment mode by relative market share, chi square test 100 5.10. Changes in foreign shareholding ratio statistics 100 5.11. Reasons for change in foreign shareholding ratio 102 5.12. Reasons for change in foreign shareholding ratio by direction of change 103 5.13. Growth and development factors statistics 104 5.14. Growth and development factors by country 106 5.15. Further investment motives 107 5.16. Factor analysis of the further investment motives 108 5.17. Types of value chain activity 110 5.18. Performance criteria expected by MNC parents 111 5.19. Performance measures focused on by MNC subsidiaries 112 5.20. Classification of subsidiaries by perceived SWOT 115 5.21. Factors influencing strategic position of subsidiaries in MNC network 116 5.22. Significance of competitive advantage factors 117 5.23. Three most significant competitive advantage factors by country 118 5.24. Comparison of competitive edge of different country MNC subsidiaries in China 118 5.25. Selected competitive advantage factors by country 119 5.26. Three most significant competitive advantage factors by industry 120 5.27. Competitive advantage factors by industry, Kruskal-Wallis test 121 5.28. Competitive advantage factors by relative market share, Kruskal-Wallis test 122 5.29. Competitive advantage factors – mean differences based on relative market share 123 5.30. Competitive advantage factors by perceived SWOT posture 124 5.31. Competitive advantage factors by perceived SWOT posture, ANOVA 125 5.32. Competitive advantage initiatives, statistics 126 5.33. Three most significant competitive advantage initiatives by country 127 5.34. Competitive advantage initiatives by country, ANOVA 127 5.35. Three most significant competitive advantage initiatives by industry 128 5.36. Competitive advantage initiatives by industry, mean difference test 129 5.37. Competitive advantage initiatives by relative market share 130 5.38. Selected competitive advantage initiatives by perceived SWOT posture, statistics 131 5.39. Selected competitive advantage initiatives by perceived SWOT posture, ANOVA 131 5.40. Selected competitive advantage initiatives by perceived SWOT posture, mean differences test 132 5.41. Competitive advantage factors and initiatives by perceived SWOT posture 133 5.42. Summary of results of strategic intent hypothesis testing 134 6.1. Items to measure strength of ties 138 6.2. Measuring integration and localisation pressures 139 6.3. Items to measure funding channels 140 6.4. Strength of ties with parent, statistics 142 6.5. Strength of ties with parent by time of entry, Kruskal-Wallis test 143 6.6. Strength of ties with parent by country, chi square test 144 6.7. Strength of ties with other subsidiaries, chi square test 144 6.8. Strength of ties with parent by HQ location, statistics 146 6.9. Strength of ties with parent and other subsidiaries, statistics 147 6.10. Integration and localisation, statistics 148 6.11. Localisation of various functional strategies, statistics 149 6.12. Localisation of various functional strategies by overall localisation pressure, correlation 150 6.13. Integration and localisation pressures by time of entry 151 6.14. Motives for mergers and...