| Transnational corporation cooperation is a very difficult business strategy which includes market research,target-setting,cooperative partner selection,contract drafting and complex processes.The paper focuses on partner selection for Small and Medium Enterprises(SMEs)and examines the process by taking a case study of STS Company on how the company selects its strategic foreign partner according to its demand and drawbacks under the development of the Testing,Inspection and Certification Industry(TIC).Business partnership can be divided into partner-related and task-related relations.The former seeks a long-term cooperation which stresses the integration of their entrepreneurial culture.It selects partners based on its development objectives,previous cooperation,trust,management level,business reputation,business culture etc.For task-related relations,companies form a business based on common goals.It strives for resources complementation and aggressive development,which usually emphasizes on patented products or technologies,capital,sales channel,customer resources,government relations etc.The paper applies partner selection theory for international cooperation,combines with the characteristics of private SMEs and the first-hand information collected through the interview with the owner(General Manager)of STS Company.It concludes that task-related relation better suits the current development objectives of STS Company.The case study and survey show that STS Company selects its strategic foreign partner based on qualification,specific technical resources,market driving force,cooperative ability and trust.It evaluates through Analytic Hierarchy Process(AHP)and scientific calculation,and eventually selects MTC Company as the most suitable cooperative partner.There are no given criteria for the selection of strategic foreign partner,companies are supposed to set up several indexes that fit its demand most and select the most suitable partner among three to four potential partners. |
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