Research On Characteristics And Influencing Factors Of Multi-national Corporation Embedded Local Production Network

At present, many developing countries have become a hot area of multinationalinvestment. These areas want to get the success in developing the local economy byFDI, China wants to promote MNC’s depth local embedness and realize the marketfor technology target and the upgrading of the industrial structure transformation,Unfortunately, there often occurs an opposite situation-the MNC’S weakembeddedness phenomenon because of cost or other factors, as MNCs’ little linkageswith the local,very likely relocate and limited spillover locally, ete. Therefore undertoday’s trend towards gobalization, it rasies great concern that wheather MNC canrealize the depth local embeddedness, how to embed, Embedded characteristics whicheffeted by those factors.Sholars from different backgrounds have provided various explanations on therelationship between global and local such as the relations theory between The MNCand Local production network, the MNC embed behavior approach, We find thatthese theories are described form a single perspective and lacking a system integration,so,the relationship between global and local still is a fuzzy concept of scale. Therefore,the artic chose the angle of the MNCs’embedded local production network andresearch on global and local specific actor’s interactive process. This paper constructsthe theoretical framework of the connotation, process, characteristics and influcefactors of MNCs’ embedded local production network. We take Zengchengautomobile industry cluster as a case and research the process, characteristics andinfluce factors of the MNC Guangzhou Honda embedded Zengcheng local productionnetwork. During our research，questionnaires and depth interview were used as themain research insturments, and using SPSS statistical software, social networkanalysis, multiple regression analysis for the data analysis and verification. Afterempirical and theoretical anlynsis, we put forward the problems and Countermeasuresof the embedded, which in order to promote Guangzhou Honda and other enterprisesdepth embedd and improve the competitiveness of Zengcheng automobile industry clusters.importent results and conclusion as follows:(1) the status of Zengcheng automobile production network in GuangdongProvince, China, Honda global production network were anlaysed, the internationalcompetitiveness of Zengcheng automobile industry was quantitatively measuredthrough the GEM mode. The results show that the Zengcheng automobile industrycluster reaches the national average, a late start, the weak in innovation and industrialinfrastructure, but the obvious latering advantage.(2) The formation stages of Zengcheng automobile production network weredivided into three stages: the Guangzhou Honda entered stage, the supportingenterprises entered stage, and local enterprises entered stage. The embedding featureand space network structure of each stage are different. The embedded features wereidentified the evolved from surface embeddness to depth embedness, the networkspace structure were identified from point, line to the surface shape. The structurecharacteristic of the network and the density and intensity of the main actors weremeasured and found formed the Guangzhou Honda closed production network and thelocal closed production network.(3) We found that MNC internal factors, local circumstances and the globalproduction network factors influence the embedding feature by multiple regressionanalysis. The enconomic embeddness and the system embeddness are affected by theenterprise property, scale and the local resources, industry supporting capacity,intermediary institutions, government policy, and the local environment ofcompetition. The technology embeddness effected by the enterprise size, nature,origin, local resources, supporting capacity, intermediary institutions, governmentpolicy and global production network factors. Social embeddedness effected by theenterprise strategic motivation, the local innovation atmosphere, basic resources,supporting capacity and supporting level factors.(4) We analysis the basic situation of Zengcheng automobile enterprise byquestionnaire survey, and divided the enterprises into three types: the multinationalauto enterprise, the followed supported enterprise, local enterprises, The slectedthree leading enterprises are interviewed to obtain three kinds of embedded mode:the Guangzhou Honda’s interacted own strategy and local resources preliminaryembedded mode, the Guangzhou electric vehicle matching with embedded mode, theGuangzhou Ji ye automobile air conditioner independent research and development ofendogenous embedded mode. Finally, we propose the embedded optimization modein the future according to the embedding problems, which means that the ZengchengDevelopment Zone and industry associations to build public platform, whichsupported by government’s financial and transnational enterprises’technology in orderto promote the common development.of multinational corporations and localenterprises.