Multinational Subsidiary Roles Evolution Mechanism

Multinational Corporation (MNC) plays an important role in promoting host country economics. However, many developing countries emerge a phenomenon of "export increased, economic increased, but not developed". That is the economic paradox of "increased but not developed". Many research indicate that the reason of it roots in no knowledge exchange between MNC and host country. Local enterprises can't learn the real useful knowledge from the subsidiary located in the country.Aiming at this problem, this paper focused on the subsidiary, according to resources exchange density of inter-network and outer-network, classify subsidiary into three types: production factory, operation center and local rootage. The aim of this paper is to study the evolution mechanism of subsidiary roles, discuss the interactive evolutionary rules among the three types. Provide guidelines for host country government to dominate the direction of subsidiary evolution.This thesis is organized as follows:Chapter 1 is introduction; this paper educes the issue of the research ,such as research method, research logic framework and the arrangement of the whole text.Chapter 2 is literature review; this chapter summarizes the related theory of MNC. Emphasized the research achievements on subsidiary category and subsidiary evolution. Through the analysis of existed research, we point out the undisolved issues about which wants to discuss. The undisolved issues are as follows: (1) Research object before lie in developed country mostly, but few in developing countries. (2) Discussed the phenomena of subsidiary evolution, but didn't discuss the evolutionary rules. (3) Analyzed the factors affecting the subsidiary evolution, but didn't go deep into the direction and impetus of subsidiary evolution.In chapter 3, we give a deep theoretical analysis of network theory and network organization of MNC. On this basis, we categorize the roles of MNC sub according to the classified logic of network. Lastly give a positive research based on the subsidiary invested in china.Building on the previous chapter, chapter 4 introduces a conception of 'network capital' to the evolutionary mechanism of MNC subsidiary. Subsidiary network capital means the resources embedded in subsidiary network of which subsidiary can get access to or can take advantage of in some action. Network capital can be analyzed in two latitudes: network location and embeddedness network resources. Further, building a theoretical model of subsidiary evolutionary based on network capital.This chapter deduced that the essential of subsidiary evolution is that subsidiaryis droved by network benefits, through self-learning, accumulating resources and capability, copy and re-construct network connection (from sparse location to dense location) during the process of increasing the network capital, and then make the network connection evolve (that is subsidiary evolve for subsidiary roles is classified by network connection).In chapter 5, this paper analyzes the path of sub evolution. Deduce the evolution path of the three sub roles in China where MNC invested. Subsidiary need to evolve from sparse-connection location to dense-connection location.Chapter 6 is the research on MNC sub evolution impetus. This chapter builds a frame of sub evolution impetus based on the character of sub inter-network organization, outer-network organization and itself. Systemically analyses the impetus factors, deduced the hypothesis. Chapter 7 gives an empirical research to the hypothesis in chapter 6. Based on the subsidiary in China. Some beneficial inspiration is obtained.Chapter 8 summarizes the results of this paper and proposes the implication of the research.Compare with former studies concerning subsidiary evolution, the following aspects are unique points of this study:(1) According to network connecting relation difference, this paper categorized the subsidiary into three categories: production-based, operation-center and local-rootage subsidiary. Subsidiary roles classified based on network connecting provide a new pers...