Studies on the New Trends of Multinational Corporation Strategic Alliance and Influence to China

By Jing, Sun; Mo, Chen | Cross - Cultural Communication, July 1, 2012 | Go to article overview

Studies on the New Trends of Multinational Corporation Strategic Alliance and Influence to China


Jing, Sun, Mo, Chen, Cross - Cultural Communication


Abstract

Along with the development of economic globalization and the intense of international competition day by day, Multinational corporation according to the comparison superiority which different host country in the talented, technical strength as well as in the scientific research infrastructure, arranges the scientific research organization in global, it promote various countries to cooperate and exchange in high-tech domain (BAI, 2008). Meanwhile the Multinational corporation adjustment or establishment investment strategy to China, invested to Chinese market massively, its business strategy and organizational form presented the new tendency -- Multinational corporation strategic alliance. The transnational strategic alliance changed traditional "antagonism" competition which took the competitor vanishing as the goal (GAO, 2000). The paper has analyzed that Multinational corporation strategic alliance's new trend and influence to Chinese economy, proposed the Chinese Enterprise's counter measures.

Key Words: Multinational corporations; Strategic alliance; Investment strategy; Cooperation; Competition

SUN Jing, CHEN Mo (2012). Studies on the New Trends of Multinational Corporation Strategic Alliance and Influence to China. Cross-Cultural Communication, 8(3), 32-36. Available from URL: http://www.cscanada. net/index.php/ccc/article/view/j. ecc. 1923670020120803. 3200

DOI: http://dx.doi.org/10.3968/j.ccc. 1923670020120803.3200.

INTRODUCTION

Strategic Alliance refers to two or more transnational corporations in order to achieve an importance common goal and establishing partnerships. There are two main types of transnational strategic alliances: League of equity and non-equity joint ventures, equity joint ventures refers to international joint ventures, non-equity Alliance Is called the International Cooperative Alliance. Multinational corporation strategic alliance is a "combined competition", refers to two or more multinational corporations on the international competition, and take on strategic measures in order to overcome the other competitors, which included investment, research and development, production, marketing, also include knowledge creation and exchange and communicate all kinds of information. Although multinational strategic alliance began in the 1960 of the 20th century, it is extensively developed in the last 20 years. With the rapid development of science and technology and accelerate the process of economic globalization, and the development of non-zero-sum game theory, provides scientific theoretical models for multinational strategic alliance, makes the establishment of strategic alliances are not only using more and more generally by multinational corporations, and strategic alliances continued to develop in depth.

1. THE NEW TREND OF MULTINATIONAL CORPORATION STRATEGIC ALLIANCE

1.1 From the Product Alliance Developed Knowledge Alliance Which Take the Technical Collaboration as Primary

Multinational corporation strategic alliance mainly revolved the product to carry on alliance at early time, therefore it is usually called the product alliance, its goal is to reduce the investment expenses and investment risk, perhaps to reduce the threat of the product competitor (ZHAO & GE, 2002). The product alliance is quite pure, obtains some product or widespread sales extant product is the profitable target which alliance all quarters pursue. Along with science and technology rapid development, modern technology comprehensive and complexity cause Multinational corporation research and development more and more difficult, therefore Multinational corporation's strategic alliance more displays knowledge alliance which take the technology development and research results sharing as the characteristic, from strategically maintains technological innovation ability and technical leading status becomes the priority target which alliance all quarters pursue (DU & LIU, 2002). …

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