A Study On The Transformation Mechanism Of Overseas Social Capital Into Innovation Performance Of Chinese Multi-National Corporation

In recent years, with the development of economic globalization, the overseas market has shown new features, the liquidity of innovative resources such as talents and technology have gradually enhanced. In order to break the monopoly of foreign technology. Chinese Multi-National Corporation gradually occupies the leading position in some important areas, through the implementation of innovation strategy, and grasps the key technologies with independent intellectual property rights. Under the background of globalization, the innovation strategy of enterprises are closely linked with the input of resources, when Chinese Multi-National Corporation makes progresses in self-dependent innovation, they continue to strengthen the organic combination with the foreign local market at the same time in order to broaden the sources of innovative resources. As Chinese Multi-National Corporation which "Going out" integrate the resources with host market network members, they also integrate the knowledge, talent, technology, capital and other resources from overseas market. Through the overseas social network. Chinese Multi-National Corporation turns these resources into practical innovation output. With the global configuration of value chain, Chinese Multi-National Corporation conduct cooperation in R&D, manufacturing, marketing and other areas through network relationships with foreign organizations in overseas markets, in order to make full use of overseas knowledge resources for innovation practice. So we can find that the overseas social capital is crucial to the success of the foreign business ran by Chinese Multi-National Corporation.At present in the theory study of social capital, social capital theory is used to explain the creation, acquisition and transfer of knowledge, to study the relationship between social capital and performance, and most of the research is limited to the local market. The theory and empirical research on overseas social capital is relatively less, and there is a big gap in the research of overseas social capital and overseas innovation practice of Chinese Multi-National Corporation, which is not enough to guide Chinese Multi-National Corporation in the overseas market. At the same time, there is much less research to combine social capital and organizational learning, based on which to make an analysis to the patterns and types of organizational learning capabilities. Based on the needs of theory and practice, organizational learning is an important tool to study the transformation mechanism of social capital into innovation performance, and it is very necessary to achieve a balance between exploratory and exploitative learning capabilities. However, how to achieve this balance is not conclusive in the theory. These issues are related to the success in overseas market and long-term development for Chinese Multi-National Corporation, but the existing researches have not yet solve these problems and give the clear solution.On this basis, this study will conduct the following research theme and research goal. According to social capital theory, organizational learning theory and the characteristics of innovation conducted by Chinese Multi-National Corporation in the overseas market, we will build and develop workable overseas social capital dimensions, organizational learning capability dimensions and innovation performance dimensions, to explore the relationship between different types of social capital and organizational learning capabilities. And then we will explore the innovation mechanism in the overseas market, which aim to gain the general principle of the transformation and utilization of overseas social capital. So we can provide theoretical guidance and management suggestions for the formulation and implementation of organizational learning strategy and innovation strategy, according to the actual situation of Chinese Multi-National Corporation.This study mainly includes the following systematic work:firstly, we explained the importance and necessity to study the overseas social capital of Chinese Multi-National Corporation, as well as the research plan. Secondly, we systematically reviewed the papers in the field of social capital, organizational learning, innovation and knowledge transfer, which laid the theoretical foundation for this research. Thirdly, based on the literature review and interview investigation, we established the relationship model of the transformation mechanism of overseas social capital into innovation performance based on the organizational learning capability, and introduce organizational learning capability as intermediary variable, took the dynamics of environment as moderating variable and considered the industry factors in the control variables. Then based on the discussion of different dimensions in the conceptual model, we put forward the research hypothesis. Fourthly, we discussed the design of the empirical test on the concept model and research hypothesis, based on literature review and interview investigation, we developed the measurement scale, and sent the questionnaires to sample enterprises and get the first-hand data. Fifthly, we conducted statistics and analysis of the sample data, and tested the research hypothesis according to the empirical results, and then analyzed and discussed the results.In this study, through the collation of relevant literature and the analysis of empirical data, we can draw the following conclusions:first, the overseas social capital is an important strategic resource for Chinese Multi-National Corporation. Overseas social capital contributes to the Multi-National Corporation through innovation to form the core competitiveness and competitive advantage in the overseas market. Secondly, organizational learning is an important way for the transformation and utilization of overseas social capital, through cultivating the learning capability. Chinese Multi-National Corporation can turn the knowledge contained in the overseas social capital into innovation performance, in which the cultivation of exploratory learning capability will bring radical innovation performance, and to cultivate the exploitative learning capability will bring incremental innovation performance. Thirdly, the two kinds of learning capabilities can form four matching strategies according to the different levels of the exploratory learning capability and exploitative learning capability. The four kinds of strategies will bring about different innovation performances and the Multi-National Corporation should choose the specific strategy type according to their own needs. Fourthly, the dynamic environment can affect the transformation process of overseas social capital; the dynamics of environment will regulate the strength and direction of the relationship between overseas social capital and learning capabilities.The theoretical contributions and innovative points of this study can be reflected in the following four aspects:first, through the literature review and interviews, we summed up the concept and connotation, the dimensions and mechanism of social capital, and expand the concept of social capital to the overseas market. This paper enriches the research of social capital theory, and innovatively applied the social capital theory to the overseas innovation practice of Chinese Multi-National Corporation, which filled the blank of the related research; second, we combined the concept of social capital, organizational learning and innovation, and sorted out the relationship between dimensions of social capital, organizational learning capabilities and innovation performance, then dug out the effects of different types of overseas social capital on organizational learning capabilities, as well as on the differences between the innovation performances. Then this paper put forward the congruent relationship between organizational learning capability matching strategies and different types of innovation performances; third, in the theoretical model, we introduced exploratory learning capability and exploitative learning capability as the intermediary variable, and the dynamics of environment as the regulating variable, and then analysed and tested the relationship among the overseas social capital, organizational learning capabilities and innovation performance of Chinese Multi-National Corporations; fourth, in the aspect of empirical test, through the selection of research level and research objective, and based on previous studies about social capital and overseas operation of Multi-National Corporation, we developed the corresponding measurement scale combined with the specific characteristics of Chinese Multi-National Corporation, and then carried out the empirical study.