International Development Of Chinese Private Enterprises

In Chapter one,it brings forward the meaning of studying the internationalization of Chinese private enterprises.After the economical innovation,the Chinese private enterprises were taking the strategy of "fetching in"- fetching the financing, technology,facility and management experience in the past 20 years.Now they had another strategy of "going out" and participated in dividing the work and competition of international economy.In the 21^stcentury,the international management will be the mainstream trend of the development of Chinese private enterprises.It will be regarded much more important in the field of theory studying.Practices have proved that Chinese private enterprises have the advantages of specialization,net-working and large scope.They produce shoes,clothing,socks,lighters,glasses,electrical goods and other export industries,which are demonstrated to be strongly competitive in the international market.The occupancy of lighters on the global market is 80% and over 40%of microwave oven.Lots of enterprises have completed the primitive accumulation of capital and they have their own products,brands,technology and marketing networks.A number of large or medium-sized private enterprises whose foreign assets and sales are more than a billion appear in China.They have the precondition of international management but lack of Chinese-style international management experiences in the theory and practice guidance.This paper discusses an international development path for Chinese private enterprises from the combining view of theory and practice.It is the number and scale of international enterprises a state owned that represents the country's economic strength and international competitive position.So studying the internationalization of Chinese private enterprises so as to develop Chinese multinational corporations is an urgent task that China is facing.Affected directly by the globalization of the economy,the Chinese enterprises face international market competition even at home.How to improve the international competitive ability of Chinese private enterprises has a strong connection with the status which China owned in the economy world of 21st century.However,in order to improve the international competitive ability,the Chinese private enterprises must follow the path of internationalization development.Thus,it has important theoretical and practical significance to study the Chinese private enterprises internationalization.Secondly,this paper suggests establishing and consummating the theories on the Chinese private enterprise internationalization.Obviously there are two basic issues around the study of the Chinese private enterprise internationalization:(1)Why should we take the international management?(2)How to take the international management? This study attempts to answer these two fundamental issues by combining the theoretical researches and practical samples.In order to study the two fundamental issues deeply and comprehensively,this thesis tries to analyze and solve the following problems:(1)What is the incentives of enterprises to internationalize the management?(2)Whether does Chinese private enterprises internationalization follow the gradual development rule?(3)To demonstrate integration of cooperation, learning and innovation is key factor of enterprises internationalization.(4)How to measure the international management degree of Chinese private enterprises?(5) What strategies could be provided for the internationalization development of enterprises?Chapter two is the summary of theories on the internationalization of Chinese private enterprises.It reveals the status and shortcomings of the enterprise internationalization theories in order to find the theoretical innovations in this study. First,it summarizes the absolute cost theory,the comparison cost theory and factor endowments theory.Second,it summarizes the theories on the gradualism,the network manners and the learnism of the enterprise internationalization.Third,it summarizes the internal internationalization model and external internationalization model.Enterprise internationalization has the meaning of actively participation in the international distribution and development of the domestic enterprises to the multinationals.Because of various external and internal conditions,enterprises in different countries have different speeds,manners,and degrees of the internationalization.The author found that Chinese private enterprises internationalization process had a different but important stage,besides the internationalization stages parted by Northern Europe school,the United States school and Chinese school.It is named "local internationalization stage" by the author.Chapter three presented measurement of the enterprise internationalization degree by means of the international index model,Sullivan's five elements model, Welch and Rastam Rainey's six elements model,Lu Tong's six elements of the internationalization cobweb model.The author believes that it is inadequate to measure the internationalization degree of the Chinese private enterprises only by one or two comprehensive indicator but structurally by quantity.In this way,we could find the advantages and disadvantages of the internationalization of the enterprises and correct the deviations in the enterprises development process,so as to lay the foundation for sustained and stable development of the enterprises in the future. Meanwhile,we should compare the international managements of different enterprises in the landscape orientation in order to predict the direction and speed of the development of the enterprises international management.Thus,on the bases of previous research productions the author puts forward the "N elements cobweb mode for internationalization" according to international operations of enterprises investigated.Theoretically speaking,the N elements cobweb model for enterprise internationalization has far-ranging applicability.It could be used to measure motives of the international business activities in various industries and different investment motivations,so as to demonstrate the characteristics of the international management, and sequentially provide basic analysis tools to strategize the enterprise development. In the N elements cobweb model,mathematical methods are provided to calculate the enterprise internationalization degree,which provides theoretical basis for China's domestic enterprises to develop to the multinationals. In Chapter four,a comprehensive analysis of investigation results of 468 Chinese private enterprises including light industry,textile,electrical and metal industries is firstly executed.73%of the enterprises belong to labor-intensive products,22% belong to technology-intensive products,while only 5%are capital-intensive products. 33%of the enterprises own production equipment which meets advanced international standards and 61%lead domestic technical standards.On the average to these enterprises,30 to 85%of total sales are overseas sales.Secondly,more particular investigation about internationalization of the Chinese private enterprises is applied.It is about phases and modes of operation overseas, overseas target markets choice,motives of international operations,major difficulties and obstacles in international operations,motives of enterprises cooperation, competitive advantages and disadvantages,styles of leadership and management methods,methods of mobilizing the enthusiasm of the staff,management functions, enterprise resources,management resources and development trends of international operations in the coming 5 years.Taking a panoramic view of internationalization process,Chinese private enterprises have three comparative advantages.(1)Different product qualities are determined by different target markets.(2)Low-cost expansion. (3)Good marketing capacity.With empirical studies,following conclusions are obtained:(1)Objectives of international operations of different enterprises are similar.(2)Internationalization obeys gradual development rule.(3)Integration of cooperation,learning and innovation is key factor of enterprises internationalization.(4)Indirect exports,direct exports and establishments of foreign affiliates are main international operations for Chinese private enterprises.(5)Enterprises keep improving the competitive advantages and the ability of occupying international markets.(6)Operations localization is the best way to gather enterprises resources.(7)Different kinds of enterprises spread all over the world.(8)In order to implement the "going out" strategy,policy support needs to be strengthened.These conclusions provide a practical basis for internationalization of Chinese private enterprises in future.At the beginning of Chapter five,processes of internationalization of six representative enterprises are roundly analyzed.These six enterprises are Glanz Guangdong Enterprises(Group)Company,the East Arts Shoe Company,Kangnai Group Ltd.,Thema Wenzhou Shoe Company,Aokang Group Ltd.,and Jiangsu Haohaizi Group.Then,N elements cobweb model was applied to measure the internationalization degree of every enterprise above,and in-depth discussions for survey results were conducted.Chinese private enterprises internationalization features were concluded as well as their advantages and disadvantages from modes and phases of international operations,financial management,marketing, organizational structure,personnel management,intangible assets management and international index of eight horizontal aspects.As a result,factors that affect the internationalization of private enterprises in China are easily found out.In Chapter six,international development strategies are provided for Chinese private enterprises.Firstly,it brings forward preconditions for successful enterprises internationalization.Then,"international management model",learning organizations of international management and enterprises' international management culture are advised to be established.At last,it is preliminary thinking about cultivating China's multinationals.Experience has shown that the internationalization of enterprises is a solid concept which includes internationalization of the market,brands,products, technology,personnel,system and concepts.Chinese private enterprises should develop internationalization gradually which means they should not only expand markets gradually,but evolve the international operation step by step as well.In the gradual process of international development,integration of inward internationalization,outward internationalization and local internationalization is indispensable for Chinese private enterprises to grow up to be successful multinational corporations.In the end,the seventh chapter summarizes the whole study and gives suggestions for a further study of Chinese private enterprises internationalization.The main creative works of this thesis are listed as follows:(1)The comprehensive investigation and analysis provide practical basis for scholars and researchers together with experiences and strategies for the Chinese private enterprises internationalization.According to incomplete statistic data,the author's four papers about internationalization of the Chinese private enterprises,which have been published,were quoted more than 60 times.Meanwhile,these four papers were awarded the prize of the third excellent essays of the 12^th"Mr.Ann International Trade Research Award",and were awarded by the State Administrative College for outstanding theoretical results.(2)Gradual rule applicable in development of Chinese private enterprises internationalization is found.(3)Based on previous division of internationalization,"local international stage" theory which consummated the internationalization process division theory is established.(4)Based on previous methods of measuring internationalization degree,"N elements cobweb model" and its mathematical model are established,which improves measurements of internationalization degree.(5)This thesis points out that integration of learning, cooperation and innovation is key factor of enterprises internationalization.