Multinational Companies Outsource The Production Of Strategic Management Studies

Outsourcing of the manufacturing (Outsourcing) has been one of strategies, especially for most of the multinational companies. This paper deems outsourcing as one form of the strategic alliances, and the hybid of the internal and external market. Chapter 2 describes the basic concept, characteristics, forms and fundamental reasons of the outsourcing, based on the theoretical and practical analysis.In accordance with the classical theory, the Multinational Companies owns the internal advantage. Chapter 3 analyzes the limit of the internal advantage and the background of the industry of the manufacturing services. This chapter revises the insourcing and outsourcing decision framework.Evaluation of the suppliers could include a series of the index, but that is not the all. The core of the evaluation is the comprehensive measurement of the competencies of the manufacturing service providers and the relationships of the involved parties. The joint is strong, and the switching cost is high. Chapter 4 describes the foundation of the core competences of the manufacturing services provides, i.e., the comprehensive capability, social capital, the partnership relationship, the learning of the organization and the protective measures of the intellectual property.Management of the knowledge and relationship is the two key aspects of the outsourcing. Chapter 5 describes the process of the knowledge transfer, absorption and reuse. Formal and informal protective measures could be implemented to ensure the legal use of the knowledge.Management of the partnership relationship could be built on competitive and non-competitive measures. Not only some competitions and a flexible contract are necessary, but also the partnership i& needed. Opportunism is the poison to the partnership, and it could be combined with other factors, such as the differences between two countries and enterprises. Chapter 6 suggests 5 means to increase the partnership cooperation, that is, common action, early involvement, trust, continuous cooperation and the exchange of the information.The modernization of the manufacturing is the vital to China. To be the manufacturing service providers are of great help to Chinese companies. Chapter 7 gives some suggestions to Chinese companies on the outsourcing.