Based On External Growth Mode Of Choice In The Enterprise Internationalization Process Of The Theory Of Knowledge

This paper first focuses its attention on the theoretical discussion of the external growth of firm in the academic field of international business studies. Through fully review of the research advances and theoretical developments, this paper applies the knowledge theory to the analysis of the choice between external growth methods——lliance and acquisition, and explores the micro activities of knowledge, the obstacles during knowledge transmission as well as the possible expected profit under different external growth method. Based on these analyses, the paper further forms a systematic theoretical frame, presenting the 5 factors that influent the choice between alliance and acquisition, that is, (1) the knowledge reserve inside the firm, including the human resource and the reputation; (2) features of the target knowledge, including the possibility of share and partition, the distinguishing and pricing as well as the distribution; (3) the difference of environment between the firm and the target firm; (4) the experience of international operation; (5) the learning ability of the firm. Meanwhile, the paper sorts the factors into two facets, one is the demand of strategic flexibility, the other is the demand of ownership control, and establishes a decision model and proposes several hypotheses. Then, the paper tests the raised analysis frame and the decision model by using the available data of electronic manufacture firms of China. The result confirms the hypotheses to a certain extent. Finally, the paper discusses the drawbacks of the empirical work and its possible development in the future.