Organizing The Global Value Chain Of Chinese Multinational Enterprises ——A Study Based On Outward Direct Investment

The 2008 global financial crisis created a long-term and profound impact on the global economy.And the downturn in the European and American markets caused the setback of China's export-oriented economic development mode.Under the combined effect of the dual policies of expanding domestic demand and adjusting industrial structure,Chinese enterprises have entered new development stages.Given processing trade still occupies an important position in China's economic structure,it is particularly important for Chinese enterprises to achieve a leap in the global value chains(GVCs)by transforming and upgrading their ability to withstand risks in the international market.Chinese companies have been participating in the GVCs division of labor system led by developed countries as Original Equipment Manufacturers(OEMs),and have achieved upgrades for products and process,but their further upgrades now have been encountering the dual obstacles of technical restrictions and market barriers.Outward direct investment(ODI)is an important way for Chinese enterprises to break through "low-end lock-in" and obtain high-quality resources such as technology,brand and marketing channels.China enterprises will gradually obtain the ability to integrate global resources to serve the world market by taking the unique advantages of China and the competitive advantages of enterprises,and active internationalization.Have Chinese MNEs organized their own GVCs? What are strengths of Chinese firms in establishing GVCs? Is the construction model of GVCs by Chinese enterprises the same as that of multinational companies in developed countries? How do Chinese enterprises integrate the location advantages of host countries to obtain global advantages? From the perspective of ODI,this paper analyzes those issues of boundary selection in the value chain of Chinese enterprises,and does some research on the problem of Chinese enterprises constructing GVCs by conducting analysis of motivation and location selection of ODI.This paper is comprised of seven chapters,the content and viewpoints of each are as follows:Chapters 1 and 2 are the introduction and literature review,respectively.Chapter 3 analyzes the theoretical basis and realistic conditions for Chinese enterprises to organize GVCs.This paper puts forward the CCLI framwork for Chinese enterprises to construct GVCs and analyzes the decision-making process and mode.From the subjective and objective conditions,important significance and restrictive factors,this paper makes a qualitative analysis of the realistic conditions for Chinese enterprises to organize GVCs.In Chapter 4,representative enterprises in key industries are selected for case analysis.The analysis shows that Chinese enterprises realize the global distribution of enterprise value chain through the internal integration of a large amount of foreign direct investment.The mode of organizing global value chain varies with industry characteristics,but the layout and path of the same link are somewhat similar.Due to their different sources of competitive advantages from MNEs in developed countries,Chinese enterprises prefer to keep their production process at home and globalize their R?D and marketing links.Some industries also choose to distribute their production process in host countries with large markets due to product characteristics.The difference of factor endowment and institutional factors of host country will significantly influence the decision making of value chain location selection of Chinese enterprises.Chapter 5 and chapter 6 are empirical analyses,which measure and verify the behaviors of Chinese enterprises in organizing GVCs from the perspective of location selection of ODI and the influence of location factors of host country.In this paper,the gravity model and the Heckman two-stage model,which are widely used in ODI research and have both theoretical and practical significance,are selected as the analysis tools.The selected data include information on Greenfield investment decisions of Chinese enterprises and information on host countries of developing countries,as well as institutional factors such as the business environment of host countries and "One Belt And One Road" initiative.The self-selection behavior of overseas investment of Chinese enterprises is analyzed comprehensively.In addition to grouping according to the level of economic development of the host country,important factors such as host country's factor endowment,country type and import and export scale are selected for grouping test,and the decision-making motivation of Chinese enterprises to make overseas investment location selection is cross-verified through the influence mechanism of different factors.The results show that Chinese enterprises have very significant market acquisition motivation to invest abroad.Especially after 2008,Chinese enterprises are more active in extending the marketing value chain overseas to acquire overseas markets.The ODI to acquire natural resources and strategic resources flows to the host countries which are rich in these factors,and there is a certain time trend.It is still not obvious that Chinese enterprises have the motive of overseas investment for industrial transfer with the purpose of cost reduction.The difference of location factors in the host country has either promoted or inhibited the overseas layout decision of Chinese enterprises.These results are consistent with qualitative analysis and case analysis.Chapter 7 is the conclusions and policy recommendations summarizing the unique advantages and unique modes,key industries and key regions that Chinese enterprises have in organizing GVCs.Combined with the problems found by case study and empirical analysis,this paper puts forward some relevant suggestions from the national and enterprise levels.The main innovations of this paper are as follows:(1)The topic selection meets the needs of our reality and can provide support for the national development strategic.(2)Finds the theoretical basis for the research on the construction of GVCs by Chinese enterprises.The important elements of the GVC international competition model are introduced into the OLI paradigm of ODI,and the CCLI analysis framework is proposed through extension and expansion.(3)This paper makes a systematic analysis on the organization of global value chain for Chinese enterprises and finds out the feasible research methods and paths.