Research On Trasnational Corporations Outsourcing Decision-Making

With the rapid development of economic globalization and information-based degree strengthened further, enterprises are faced with growing competitive intensity. In order to suit the market environment of keen competition, Transnational Corporations need to pay more attentions on the core business which provides the long competitive advantage for the enterprises, to outsource the auxiliary activity which is gave up. As the main operator and beneficiary of outsourcing, Transnational Corporations can lower costs and improve the core competitiveness under the correct outsourcing decision-making. But the wrong outsourcing decision-making can not realize the outsourcing value, even suffer serious economic losses. Therefore, systematic research on Transnational Corporations outsourcing decision-making has practical meaning for realizing the sustainable competitive advantage.As a relatively new management mode, the research on outsourcing is not systematic theoretical and methodological guidelines for its in-depth search and evaluation. Most of scholars at home and abroad only research on outsourcing, but the research on the relationship between outsourcing and manufacture and the influence on outsourcing decision-making by the modes of business transfer is not deep enough. Therefore, it is the key for researching on Transnational Corporations correct outsourcing decision-making form the relationship between outsourcing and the other modes of business transfer. Research in view of outsourcing and manufacture, based on relevant theories of economics and management about outsourcing decision-making, it can apply the analytic hierarchy process to distinguish between the core business and the auxiliary activities in accordance with definite steps of making outsourcing decisions. And Cob-Douglas production function can be used in the outsourcing and manufacture decision-making model which can quantify the different decisions on outsourcing and manufacture, and those who make decisions can choose proper strategies determined by the model result. On the basis of the decision-making model, it has been proposed the location selection and the mode selection in the light of different types of Transnational Corporations business. At the same time, in order to make outsourcing decision-making implement smoothly, it needs to build up outsourcing decision-making evaluating system. And the visual targets are able to be utilized for monitoring the actual operating effects and be helpful to obtain successful outsourcing decision-making.