Strategic Characteristics Of TNCs' Behavior Of Setting Up R&D Units In China

Recently, TNCs' investment structure in China has been changed. R&D units increase rapidly. The phenomenon shows new strategic characteristics of TNCs in China. According to the Product Life Cycle Theory, Ownership-Specific Advantage Theory, International Production Eclectic Paradigm, Dynamic Strategy Theory, and Resource-Based View Theory, and using multi-case research method, the Dissertation probes the strategic characteristics of TNCs' behavior of Setting up R&D Units in China by researching on four TNCs of Mobile Communication Industry. Based on the discussion on the technology, policy, and market backgrounds of the industry, the dissertation analyzed the four cases which were divided into two groups according to the initial conditions of the enterprises. And with series processes of abstracting and analyzing, some conclusions are founded. First, the behavior of TNCs' setting up R&D units in China has three modes: Mode 1, None R&D; Mode 2, adaptability development; Mode 3, both applying development and basic research. Second, derived from the characteristics of the three modes, the behavior of TNCs' setting up R&D units in China has the following three subjective motives: acquisition and utilization of market information, manufacture sustain and product improvement, acquisition and utilization of elitist and science & technology resource. Third, according to the discussion of three modes and the motive, TNCs went through the following three oriented strategies: product oriented strategy, market oriented strategy, and resource oriented strategy. Fourth, TNCs' behavior modes of Setting up R&D Units in China are dynamically corresponding with the strategic orientation. Then, the dissertation discusses the dialectic relationship of TNCs' globalization strategy and localization strategy, and thinks these two things are complementary. At last, the dissertation analyses the resource properties of location in the view of Resource-based View Theory, and put forward that there is interaction between the outer resource and the inner resource of enterprise.