The Impact Of External Relational Embededness On Subsidiary Initiatives ——Case Study Based On Subsidiaries Of Neusoft And Huawei

In recent years,dramatic changes have been taking place around the global economic situation.Chinese economy is in a state of "new normal".The strategy of "going out "was put forward in 2000,since then,Chinese enterprises have transformed from "going out"spontaneously to construction of industrial transition.We are in a era of 2.0 of the strategy of"going out".The proposal and promotion of "The Belt and Road" Initiative brings unprecedented strategic opportunities for overseas direct investment politically,economically and culturally.The existing MNC theory emphasizes the parent company's control over the subsidiaries.Recently,this "center-periphery" view has become obsolete.With the expanding of the parent company and the spreading of the geographical location of the subsidiaries,the parent company is gradually losing its center and increasing the subsidiary's authorization.The research on enterprise group has evolved from the traditional transaction cost theory to the social network perspective.Multinational corporate is seen as a big group,embedded in a collaborative network.In this network,the subsidiary,acting as a "heterogeneous resource mixture",is embedded in the external network composed of the host country's customers,suppliers,government,and the internal network of the parent company.The subsidiaries'strategic position in the group network promotes its innovation,they actively seek new opportunities,thereby gaining a wealth of knowledge and resources.The subsidiary's network resources are the basis to conduct subsidiary initiatives.and enhance the overall competitiveness of transnational corporations.It has significant influence on the development of subsidiary companies and the maintenance of competitive advantages of parent companies.The characteristics of its business network have a profound impact on the knowledge creation and diffusion.Subsidiaries play two different roles in the process:information gathering and information integration.Information gathering is affected by the depth and the degree of the network relationships.The deeper the subsidiary embedded in the network,the greater the availability of tacit knowledge.The more extensive the network is,the easier it is to search for information on a large scale.Information integration is mainly related to the complexity of knowledge transfer and the network structure of subsidiaries.As the pattern of global economic growth changes,subsidiaries in emerging economies appears more valuable than subsidiaries in developed countries and regions.Most of the previous theories are based on the transnational corporations from developed countries,while the theory of subsidiary development of multinational corporations in China is not mature.Based on the perspective of network governance,we introduce the achievements of the existing social network research into the governance of overseas subsidiaries of Chinese multinational corporations.Besides,we explore the influence of their external relational embededness on the subsidiary initiative.Then we introduce subsidiary autonomy as the moderating role.This regulation has expanded the network embededness theory,the subsidiary initiative theory and the transnational corporation theory.This paper researched overseas subsidiaries of multinational corporations in China which provide practical guidance to China's multinational overseas subsidiaries development.