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Multinational corporations the ability to transfer management research

Author: WangXiuChen¡¡YuBo From: www.yourpaper.net Posted: 2009-11-02 05:34:03 Read:
Abstract: The relationship between research the TNC subsidiaries of external technology embedded and specific duties and multinational overall capacity development. First established three basic assumptions, and assumptions based on constructed model. The model describes a significant association between the multinational subsidiary of external technology embedded assigned specific duties of the subsidiary, given the subsidiaries specific duties and multinational companies also describes the significant relationship between other departments the ability to develop.
Keywords: multinational corporations; ability to transfer; external technology embedded; specific duties


In recent years, the discussion on enterprise competitive advantage is mainly focused on the ability and knowledge of the role. In order to create and maintain a competitive advantage, companies need to maintain and enhance their own learning and the ability to absorb external knowledge. Therefore, the research has focused on capacity building of different regional branches, as well as multinational internal capacity transfer multinationals.
The ability to establish mainly depends on the knowledge of the absorption capacity, i.e. "Recognizing the external knowledge, has the value of its absorption and for commercial purposes." In order to identify and assimilate knowledge subsidiary must communicate within a company network resources and knowledge [1 2]. Autonomy to ensure ongoing knowledge creation and absorption capacity of the premise, the integration is to ensure the ability to transfer between the various units within the multinational companies [3].
The model of the data collected through standardized interviews with 42 subsidiaries and its head office management staff, and the use of the LISREL statistical methods in structural analysis, carried out to test the hypothesis.

A subsidiary's business environment and capacity development

Integration of subsidiaries and development capability is an important task for multinational companies. There are many ways to achieve this goal, for example, through a cross-cultural team, ERP systems, a working group composed of various subsidiaries, seminars and project teams and so on.
The unique ability of the subsidiaries of multinationals internal has a very important role in establishing strategic position. The subsidiary business environment mainly refers to the direct business relationships with local businesses. These relationships represent different learning and development possibilities, and these possibilities depends on the characteristics of these business relationship with learning. Those who do not have the relationship between learning characteristics become shallow relationship, a relationship with the learning characteristics is called deep relationship [4].
Subsidiaries through the development of external relations and improve a variety of capacity, is bound to get the recognition of the Corporation, this identity Corporation means the subsidiary will be given more responsibility [5]. On this basis, we make the following assumptions:
Assuming a depth of 1 (H1): the external relations of the subsidiary its positive correlation exists between
given specific duties
Assuming 2 (H2): degree of subsidiaries have been given specific duties to their importance of multinational corporations the ability to develop a positive relationship
Assuming 3 (H3): the depth of the external relations of the subsidiaries to its importance of multinational corporations the ability to develop a positive relationship
The transfer of knowledge and capacity within the organization is not simple. For example, special, abstract or codified knowledge transfer from one department to another department, the process is not easy, because such knowledge is difficult to separate from its carrier, and added to the knowledge base of the other departments. In fact, the ability and knowledge "stickiness" can not be easily transferred from a subsidiary to another subsidiary.
In multinational business environment, knowledge transfer obstacles there are two important questions:
The first problem is that the specificity of the environment. Subsidiary in their collaborators interaction process, the formation of the complex, special abilities, these capabilities can not be easily ported to other enterprise business environment. This particularity was positively correlated with the ability to create new knowledge. For example, a subsidiary of extensive and long-term cooperation between specific customers or suppliers will improve problem-solving and the ability to develop new knowledge. However, the solution involves more factors, the more difficult to apply this knowledge to the business environment of another enterprise.
The second problem is the cost trade-offs. Subsidiary is in the process of interaction with other main commercial environment, the development of its ability, and this process requires the subsidiary to invest in expensive even is a unique resource. Subsidiaries transferred to other departments the ability to process is often necessary to have the same resources to support. Therefore, the high investment in the subsidiary involved in capacity building practice proliferation ability, means a subsidiary in the transfer of resources for capacity development or capacity choice weigh.
Can be said that these two issues are subsidiary participation in external relations network embodies. The higher the degree of specificity of the subsidiary, the higher the level of participation in its business environment, its relationship formed into such activities related to the specific relationship more resources. This tradeoff exactly what the subsidiary development needs face, for example, the subsidiary with specific external customer or supplier of the product development process, the higher the degree of cooperation that is, the higher the degree of specificity of development activities in the environment, then the lower the willingness of its contribution to the development activities of the other units of the enterprise. As mentioned above, formally conferred subsidiary responsibility can achieve the ability of the subsidiaries to establish the entire enterprise.
We can put these three assumptions Figure 1:

Second, the empirical research

A collection of sample data
The empirical data from 42 subsidiaries belonging to 13 multinational companies. The subsidiary industries where there is natural gas, material, equipment manufacturing, petrochemical, power, paper, software and telecommunications equipment. More than 80% of the total business of 25% of the subsidiary's business, a subsidiary of the remaining 75% accounted for between 10% and 60%, respectively. Subsidiary of the number of employees from 50 to 000.
In order to improve the validity and reliability of the assessment of the relationship between subsidiaries and their customers and suppliers, a subsidiary interviewed three managers. The use of a standardized questionnaire, the sales manager and is responsible for the procurement manager characteristics description and assessment of the three most important customer and supplier relationships. Subsidiaries assume responsibility or been given roles in multinational corporations by the senior management interviews. Personal interviews involving 147 subsidiaries and the headquarters of key management personnel. Each interview lasted about one and a half hours, during this period, explained the concept and not clear in any of the questionnaire survey.
Construction of the model
Our empirical research on the the LISREL analysis tools hypothetical model (Figure 1). The LISREL analysis validity to estimate the overall validity. The important task is to determine specific causal relationship before the model is estimated including the construction of convergent validity and discriminant validity. The following table, the convergent validity by measuring the strength of the linear relationship between R2 value measure, t values ??provide a significant test of the model in a single relationship, and the factor loadings of each indicator.
In order to effectively measure the subsidiary role of capacity development, evaluation to reflect the importance of the development of the subsidiaries the ability of other departments of the two aspects of the product development and industrial development. The index value is scoring managers to an important extent, 5 indicating very high degree of importance, represents a very low degree of importance. After data reduction, the t value exceeds 6.13, the R2 value of more than 0.59 and factor loadings over 0.73. The statistical results showed that the indicators meet the capacity development model construction requirements (see table below).

In the survey, we ask respondents subsidiary sales manager to an assessment of the degree of adaptation of customer relationships and technology development. Similarly, to assess the importance of the company's technology development on specific customer requirements sales manager.
The embedded two indicators and technical development of two indicators combine to form four indicators that reflect the subsidiary technology embedded, namely: (1) the importance of external subsidiary product development; (2) an external company pairs adaptability of the importance of the company's process development; (3) external company subsidiary product development; (4) external adaptability subsidiaries process development (see table above). 9 ratings, 1 means unimportant or unsuitable, 5 represents a very important or very adapt. Statistical test results of the above four indicators are significant. t values ??over 7.88, and the factor load exceeds 0.73 R2 value of more than 0.59, these reflect the constructed model good convergent validity.
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