Study On Multinational Strategic Alliance

The dissertation consists of an introduction and six chapters.Chapter 1 includes a brief survey of the theoretical literature concerning strategic alliances and the analysis of macroeconomic environment and the motivations of MNCs for strategic alliance. The development of ICT, International division of labor, globalization and regional economic integration affect the strategies and investment behaviors of MNCs considerably. The dissertation argues that the motivations of MNCs strategic alliance lie in: to fill in the strategic gaps through complementary resources; the pressure of global competition and the need to explore new markets; to set up technological standards and build nodal positions so as to control the high ground of future reconfigured industries; the pressure of the shortening of product cycle and the rise of R&D cost; to strengthen organizational learning capability and build up core competence and dynamic competitive advantages. Strategic alliance is characterized by competition and cooperation.Chapter 2 analyses strategic alliance from the perspectives of transaction cost: theory, value chain theory and resource-based theory. According to Ronald H. Coase, firm is the substitute of the market. But in reality, there exist a lot of hybrid organizations, which belong to neither pure market transaction nor internalization. The dissertation analyses the necessity of strategic alliances in the light of O.E. Williamson's asset specificity, transaction uncertainty and transaction rate. M.E. Porter's value chain theory also throws light on strategic alliance. Worthy of mention is the resource-based view of the firm, which enables us look into and even question the theory of internalization based on transaction theory.Chapter 3 makes an empirical analysis of cross-border strategic alliances with the cases of R&D alliances. The chapter also deals with the effects of strategic alliances, namely economies of scale, economies of scope, economies of speed, synergistic effect, learning and innovating effect, etc. A comparison of M&A and strategic alliances is made from the perspectives of market entry, controlling rights and organizational learning. M&A and strategic alliances are usually used by MNCs simultaneously and cannot replace each other although alliance may be prelude to M&A in some cases.Chapter 4 is also the empirical analysis of strategic alliances, but with the case of automobiles industry. By comparison with American mode, the chapter starts with Japanese subcontracting and analyses the causes for the long-term transaction relationship between manufacturer and suppliers. The chapter further investigates the Keiretsu which Japanese auto-manufacturers (such as Toyota and Honda) built abroad, especially in east Asia. The dissertation argues that automobiles manufacturers have to rely more on suppliers in order to cut the cost of productionand carry out the differential strategy. Mass-customization and flexible production will become the tactics of MNCs, especially in automobile and electronics industries.Chapter 5 makes theoretical conclusions. The dissertation holds the view that the strategies of most MNCs transform from complete integration and internalization to disintegration and externalization, that is, from hierarchies to network organization. Strategic alliances will help MNCs deepen the international division of labors and establish more cooperation relationship with their suppliers and distributors. The chapter also points out the shortcomings of traditional MNCs theories, which mainly explain the prerequisite of FDI. Therefore, the dissertation thinks that more attention should be paid to the dynamics of OLI, particularly in respect of the innovation activities of MNCs, more attention to the interrelationships between OLI, especially over time. The resource-based view of the firm can help look into MNCs global strategies. The increasing need of firms to seek new created assets abroad and coordinate them effectively requires us to rethink traditional theories of MNCs. The c...