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The multinational internal competing Analysis based on knowledge-based view

Author: HongZuo””SuoWaLuo From: www.yourpaper.net Posted: 2009-03-31 11:53:23 Read:
Abstract: Today, multinational center of gravity of the global configuration, build competitive advantage depends on the effective use of intellectual capital, complementarity and heterogeneity of knowledge within multinational companies, subsidiaries not only generate knowledge-sharing cooperation, but also lead to intense competition within multinational companies. So, to create knowledge-sharing cooperation between the quality of subsidiaries, as well as highlight the characteristics of each subsidiary, occupied a strategic position in an important channel to take advantage of the competitive advantages brought about by the heterogeneity of knowledge, innovation, coordination within the multinational parent competition and cooperation between the various subsidiaries, the primary task to improve the overall core competitiveness.
Keywords: internal competing; knowledge flow; complementary knowledge; knowledge heterogeneity

Multinational knowledge-based view

In the era of knowledge economy, knowledge as the only tools of production that do not follow the law of diminishing returns, a source of profits of multinational companies, become a decisive factor in the increase in productivity and wealth growth, only the importance of access to knowledge, the use of knowledge and knowledge creation and effective implementation of knowledge management, enterprise to win in the increasingly fierce market competition. And the so-called multinational knowledge-based view of the multinational as a social community, from the perspective of knowledge to find the source of the multinational advantage. This theory holds that: enterprise knowledge and enterprise creation, transfer and integration of knowledge ability to determine the boundaries of multinational enterprises; multinational corporations is a collection of knowledge, but also knowledge of the cross-border transfer of an effective carrier, which foreign direct investment is unique multinational knowledge transfer; the heterogeneity is determined by the difference of the accumulation of knowledge and level of knowledge, and thus constitute a basis for enterprises to win sustainable competitive advantage.
The rapid development of the world economy, the changing economic environment, multinational companies in order to build its competitive advantage only through the accumulation of knowledge, integration of knowledge, innovation and knowledge in order to design products and services in line with the global market. To achieve this goal, it must focus on collecting and to obtain scattered in various countries and regions of the world, a subsidiary of the hands of knowledge, and knowledge of identification, integration and innovation on a global scale to ensure excellent knowledge on a global scale are functioning and embodiment.
Gupta and Govindarajan under the knowledge inflow and outflow of the degree, build a knowledge flow patterns in two-dimensional matrix (see Figure 1), through knowledge outflow from the subsidiary to the multinational companies in other sectors "and" knowledge from multinational companies in other sectors subsidiaries inflow of these two dimensions, the multinational subsidiaries are divided into four categories, namely: global innovator, local innovation, utilization, implementers, they think multinational subsidiary is inevitable in the two-dimensional matrix a location.

As can be seen from Figure 1, the global provider of innovative and comprehensive utilization of multinational subsidiaries is mainly responsible for the flow of knowledge. However, with changes in external competitive environment as well as internal factors of development, innovation and learning of knowledge has increasingly become the key to enterprise development, the core of the competition, the role of the overseas subsidiaries within multinational companies is undergoing profound changes: the traditional global innovator is usually borne by the multinational parent company, however, to facilitate the development of modern communication technology, technical exchanges between regions lead to gradual weakening of the regional disparities, as well as modern knowledge to enhance the importance of the enterprise, the subsidiary simply accepted as knowledge and perform nearly unable to meet the needs of enterprise development competition, for which a number of subsidiaries becoming multinational integration of knowledge and creators.
Today, overseas subsidiaries are becoming creators, bearers of the research mission of the participants as well as strategic planning and implementation of leading-edge thinking. Or that they are no longer mere recipients of knowledge, and to become a global innovation and integration of the knowledge. The role of multinational subsidiaries in knowledge creation is increasingly attracting attention. At the same time, multinational subsidiary of internal competition to promote innovation to maintain their vitality, extensive cooperation in the promotion of mutual knowledge exchange based on the promotion of innovation, competition and cooperation can be said that the subsidiary making the knowledge to create more efficient. The key to development for multinational companies that manage internal flow of knowledge, with different strategic characteristics and roles to distinguish between the various subsidiaries, a global collaboration management, competitive internal efficiency, which aims to promote knowledge innovation and enhance the competitiveness of enterprises .

Second, within multinational companies competing

Multinational foreign affiliates of the network, which is an internal differentiation specific strategic role to play in accordance with the requirements of the parent company, its business is to manage design. These roles and activities are not the same, but it is the system to spread out, so that it can adapt to different environments and resources. Subsidiaries of multinational internal competition and cooperation exist, subsidiaries, not only by the cooperation induced or forced to compete, but also limited resources in order to compete for the parent company, company support, on behalf of rights, market expansion and international status . Cooperation and competition will be the consolidation of resources or transaction-dependent and support. Subsidiaries located in different regions have to deal with different matters, play different roles, thus increasing the collaboration of certain matters, function or knowledge development, but also enhance the competition of other matters, function or market. Even under the umbrella of the same parent, subsidiaries rarely completely in all respects or in all periods share the same interests, this is because they are faced with the pressure of market competition and reflect due to local and national fitness . So on the one hand, the management of the parent company in order to coordinate on a global scale complex business network, must be coordinated subsidiary competition and cooperation; On the other hand, managers of the subsidiaries have their own preferences for competition and cooperation. Multinational pursuit of the world's most efficient and the pursuit of local adaptation, and network requirements through the integration of a shared vision and goals, it should be fully considered in the competition and cooperation between the world's decentralized management subsidiary of the global integration and national adaptability combination.

Third, collaborative knowledge complement each other subsidiaries

From the 20th century onwards, the R & D and other enterprise core knowledge is considered to be strategic, enterprise resource is the key for enterprises to improve their core competitiveness and sustaining competitive advantage. Multinational companies through the establishment of a research and development center to conduct research and development in order to achieve technological first-mover advantage, and thus a monopoly position, or the establishment of the company's internal knowledge-sharing platform, and constantly within the organization, the accumulation of knowledge creation, integration and, ultimately, the excess return. But all these research and development and sharing of knowledge is only based on the knowledge complementarity between the various subsidiaries in order to ensure the validity of knowledge, a waste of resources to avoid duplication of knowledge, complementary knowledge for competitive advantage subsidiary provides a common cooperation areas and looking for synergies and efficient basis points. Within the multinational subsidiary organizational structure independent and creative ideas on collaborative knowledge acquisition and use more efficient, but also determines its contribution to the overall competitive advantage and a strategic position in the enterprise, and therefore select collaboration, priority should be given to the importance of complementary knowledge of the subsidiary.
From a complementary perspective, the multinational knowledge relationship can be divided into three types, which can have a relationship of cooperation between the three subsidiaries (see Figure 2).

The (a) addition of complementary cooperation
Plus complementary a multinational knowledge relations. This knowledge relations subsidiaries (K2) tend to have the critical expertise in the production process, this knowledge is not mastered by the other subsidiaries; subsidiaries (K1), with the host country due to local adaptability local expertise, complementary knowledge, such as consumer demand, local sales channels, supply of local resources, the host government preferences and other information. Two different sources of knowledge through the accumulation and consolidation of the stock of knowledge (K1 K2), and eventually subsidiaries (K1).
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