OFDI And The Pattern Of Breakthrough Of Chinese Enterprise During Global Chasing Dilemma

For more than forty years of China’s reform and opening up,the Chinese miracle has shocked the world.As of the end of 2018,a total of 120 Chinese companies have been on the list of the top 500 in the world.Some people previously criticized the "big but not strong" of Chinese companies and became In recent years,Chinese companies have been catching up or even surpassing in the fields of highspeed rail technology,5G communications,construction machinery,and the Internet.Latecomers in many industries have been facing the disadvantages of lack of capital,technology,talents,and policies since their establishment.It is not easy to achieve leapfrog development in this context.In the current environment,the state has called on domestic companies to "go global".Except for state-owned enterprises that have rich international exchanges and experience,will the late-developing companies be able to absorb useful experience from the pioneers of reform and opening up and provide their own multinational operations with Catching up for reference is a more important issue.This article based on the theory of internationalization of latecomers,combins relevant research on internationalization of enterprises and OFDI theory of enterprises to construct a theoretical analysis framework.Through a single case study,Geely Group ’s internationalization path and strategic choice from the listing of Hong Kong in 2005 to 2019,through The level of technology,R & D mode,operation level,and mastery of key technologies divides the entire late catch-up process into three stages,namely,early late catch-up,stable development and accumulation period,and innovation breakthrough period.Combine the basic theory of latecomers to build a framework for identifying latecomers ’catch-up dilemmas,analyze the business situation of major competitors and similar companies over the same period,and then supplement with the technology spillover effect of differentiated OFDI behavior to discuss China ’s latecomers Through the overflow of OFDI technology breakthrough breakthrough chasing mode.Research shows that the process of late catch-up of enterprises will face at least three stages of development:(1)In the early stage of catch-up,late-stage enterprises will face the dilemma of low-end expansion,that is,in a competitive environment with low technology and low profits,they Low-end product manufacturing companies are competing.At this stage,they are constrained by narrow financing channels and high financing costs.It is difficult to achieve effective scale expansion and fall into the dilemma of low-profit-low R & D-low-scale catch-up;(2)In stable development and During the accumulation period,latecomers will face the dilemma of low technology and brand value,that is,although they gradually break away from the vicious circle of low-end competition,due to their low brand value and poor core technology research and development capabilities,it is not only difficult to obtain a higher brand The premium is also difficult to achieve breakthroughs at the technical level.High technology costs in turn squeeze corporate profits,causing the company to fall into the double bottleneck of technology research and development and brand building,which restricts the company from catching up further;(3)During the period of innovation and breakthrough From distant followers,they are gradually approaching industry leaders.As latecomers start to face changes in industry technology models and business models,there is no longer a reference for technology research and development paths.Enterprises need to start with innovative research and development models and reserve cutting-edge technologies,otherwise they will Falling into the problem of R & D failure,and losing momentum in catching up with the “last mile” at the end.Through the analysis of Geely Group’s three stages of different breakthrough modes and effects,this article mainly draws the following three conclusions:(1)In the early stage of late catch-up,when the enterprise’s technology level is low and it is unable to meet the needs of the middle and high levels,through the establishment of overseas financing channels,low-cost mergers and acquisitions can quickly become large-scale,helping to break away from the low-end technology stack market at this stage.Difficulties caused by lowend competition.(2)During the period of stable operation and breakthrough,combined with the company’s own operating situation,its OFDI behavior pays more attention to the construction of R & D capabilities and brand premiums.At this time,it integrates technical resources through technology acquisition-type mergers and acquisitions,and produces technology spillovers together with brand premiums.It helps to gain an advantage in the domestic market during the catch-up process in order to accumulate the resources necessary for continued innovation.This breakthrough model is more effective for enterprises at this stage.(3)In the process of approaching leading companies,it is difficult to observe obvious paths for both the technical route and the business model.Since the path of late catch-up cannot be developed by following or jumping,in order to achieve surpassing the enterprise at this stage,it should be Focus on innovative technologies and new business models.Since the technological distance will obviously limit the technology spillover of companies acquiring OFDI,and the value of traditional technology acquisition M &A declines,at this time,through the establishment of a global R & D network and the establishment of cooperation to promote advanced technology self-research,it will help provide advantages in innovative technology research and development;The industry’s first companies are jointly promoting the exploration of new business models and obtaining the opportunity to enter the "creative path" in catching up with the latter.On the whole,in the context of China’s current promotion of "going global",domestic enterprises face more intense market competition and counter globalization trends,combined with their own industries and characteristics,flexibly use the differentiated OFDI model,choose the most Suitable for the company’s own resources and competitive environment,rather than the traditional "best" late catchup model,it will be more conducive to improving the efficiency of companies obtaining OFDI technology spillovers,promoting the technological upgrading and development of China’s latecomers,and promoting further economic growth..