Multinational Strategic Alliance And Its Implications

With the rapid development of world economic integration, science and technology, transnational corporations (TNCs) has been aware of the fact that every single enterprise's power is limited, and they will lose competition with their resources drying up if there is only competition among them. Hence global TNCs are searching for partners of strategic alliances to cope with increasingly intense competition in the world market. Strategic alliances have such great effects on the production and management of TNCs that they are named as "the most important innovation of organization since 1920s' ". Thus how to understand strategic alliances of TNCs and adequately utilize them has become a hot topic in academia in recent years.Since China implemented reform and open policy, Chinese enterprises have made a big progress in export, import, FDI absorption and overseas investment. But Chinese enterprises should overcome difficulties in capital, technology, market and so on in the process of internationalization. So Chinese enterprises should change their developing strategy. They ought to learn to take advantage of outside resource. Participation in strategic alliances can make Chinese Enterprises' internationalization more smoothly, so they should try to build strategic alliances with other enterprises.This article can be divided into four parts.The first part introduces the concept, styles, characteristics and trend of strategic alliances of TNCs. Then it analyzes why strategic alliances of TNCs have developed so fast since 1980's.This part is the basis of the next three parts.The second part discusses the theories of strategic alliances of TNCs, which are Resource-based theory, Value Chain theory and Transaction Cost theory. Then it evaluates the capability of the theories above in explaining the cause of formation of strategic alliances of TNCs.