The major goal of this project is to provide comparative studies on multinational companies' (MNCs) global strategies, strategic evolution, and subsidiary categories in China, based on 150 MNC subsidiaries in China, which is the first large-scale project of its kind. MNCs from the United States, the European Union, Japan, and South Korea are divided into four strategic categories. The findings have important implications for strategic planning for companies who have established, are establishing, or plan to establish subsidiaries in China, as well as companies that compete globally. The findings are also important for the West, given the current economic crisis and the need to figure out if subsidiary expansion strategies can help Western firms achieve portfolio effects in operations while avoiding the negative effects of macro events like the current global financial and political crisis. This is the second of two volumes that will wrap up the project, with the first volume, MNC Subsidiaries in China: Strategic Perspective and Research Methodology, being the first. This book is more comparative in nature, including empirical data, analysis, comments, and recommendations for further research.
Conclusion: The comparative study found that differences in MNC subsidiary expansion and development strategies in China under various strategic backgrounds are mostly reflected in three aspects:
(1) Differences in environmental factors between the host country and the home country influence MNC subsidiaries' growth strategies in China, and differences in environmental factors between the host country and the home country influence the choice of growth and development strategies for overseas subsidiaries.
(2) The parent company's investment and strategic layout in China have an impact on the strategic performance of overseas subsidiaries, and the strategic layout has a substantial impact on the strategic performance of subsidiaries in China.
(3) Differences in the organisational structure of MNC subsidiaries in China have resulted from multinational businesses' worldwide framework. While overseas MNC subsidiaries pursue various strategies, the organisational structure of those subsidiaries must be adjusted on a regular basis.Author(s) Details
Jifu Wang
College of Business, University of Houston, Victoria, USA.
Jinghua Zhao
School of Government, Central University of Finance and Economics, China.
Ken Colwell
College of Business, University of Houston, Victoria, USA.
View Book:- https://stm.bookpi.org/SMNCSC/article/view/5658
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