Research On Mnc Subsidiary Strategy And Strategy Evolution In China In Localization Perspective

With the economic globalization accelerating , the rapid global expansion of multinational corporations in developed countries and growing cross-border operations by developing countries in recent years, multinational companies are no longer exclusive to developed countries,and become a kind of universal corporate form all over the world,whose impacts on the world economy are growing. Because of this, the research on multinational corporations has been the focus of theoretical research at home and abroad. Theoretical study of multinational corporations are also constantly advanced and developed since 1960s,when it has continuously deepen through a scientific, systematic process and become an independent discipline theory.Investment strategy of multinational corporations in China has played a crucial role to achieve their globalization strategy. After reform and opening up, foreign investment has made outstanding contributions to chinese economic growth. Foreign investment in China has experienced 30 years of history since reform and opening up , when strategic changes of multinational corporations in china have been accelarating in the context of the process of globalization. This situation has had a profound impact not only on China's economic transformation,but put forward a new strategic objective for making full use of foreign investment in china to accelerate economic development.The study of subsidiaries of multinational companies in China and the strategy evolution of their roles not only provides a theoretical basis for the management of multinational companies and enriches theoretical content, which has the higher theoretical value in the context of economic globalization and trade liberalization where multinational corporations are the main form of organization in the world economy , but also helps governments targeted to improve the investment environment at all levels in china with how to be better and more effective use of foreign investment, guide and regulate the conduct of multinational corporations through providing a reliable theoretical basis.Furthermore,this paper provides important reference for local enterprises in China with how to deal with fierce competition from multinational companies, make the appropriate decision-making and implementation of cross-border operations.Based on integration-responsiveness frame proposed by Taggart,and the data from a survey of 369 MNC affiliates located in three areas-Beijing, ChongQing,Jiangsu in china ,this paper analyses multinational corporations subsidiary strategy and strategy evolution in China in an empirical way. The findings prove that all the MNCs'affiliates in those three areas can be classified into four categories: autonomous type,acceptive type,active type,quiescent type and the degrees of localization of affiliates have been increasing .And then an explorative explanation of localization theory is proposed. Finally,the policy recommendations that how to be more effective use of foreign direct investment are presented.