Strategy of MNC Subsidiaries in China: A Comparative Study

Abstract

The main purpose of this work is to provide comparative studies on the global strategies of multinational corporations (MNCs), the strategic evolution and the categories of their subsidiaries in China based on 150 MNCs’ subsidiaries in China, the first large-scale project of this nature ever. There are four strategic groups of MNC from USA, EU, Japan and South Korea. The research has significant bearing on strategic planning for both firms that have set up, are setting up or are planning to establish subsidiaries in China and firms that try to compete in global.  The findings are likewise significant for the West owing to the current economic crisis and the need determine if subsidiary expansion strategies will help Western firms achieve the portfolio effects in operations and avoid the deleterious impact of macro events such as the existing global financial and political crisis.  This book is the second of the two volumes designed to culminate the project with the first volume, entitled MNC Subsidiaries in China: Strategic Perspective and Research Methodology.  This book is based more on comparative studies with empirical findings, analysis, discussions, and suggestions for future studies. Conclusion: The comparative study concluded that differences in the growth and development strategies of MNC subsidiaries in China under different strategic backgrounds are mainly reflected in the following three aspects: (1) Environmental factors lead to differences in the growth strategies of MNC subsidiaries in China, and the differences in environmental factors between the host country and the home country lead to differences in the choice of growth and development strategies for overseas subsidiaries. (2) The investment and strategic layout of the parent company in China affect the strategic performance of overseas subsidiaries, and the strategic layout results in significant differences in the strategic performance of subsidiaries in China. (3) The global structure of multinational companies has led to differences in the organizational structure of MNC subsidiaries in China. While overseas MNC subsidiaries adopt different strategies, they need to continuously adjust the organizational structure of overseas subsidiaries.