Mechanism And Empirical Study On Control Of Multinational Company In Atuo International Joint Ventures In China

As the globalization and the constantly advancing of china's economic reform, the Motor multinational groups play more and more important role in china's motor market by the way of joint ventures, meanwhile they have even become a big threat to the Chinese motor industry as their increasingly obvious control tendency.Based on the former study on the relevant theories of multinational corporations control the IJV and guided by the control right theory, this paper carried out theoretic analysis on the ownership and management structure of joint ventures, the control efficiency of multinational corporations in the IJV. This paper studied the ownership control, knowledge control and technique transmission of multinational corporations in IJV, furthermore conducted systematic discussion on the control mechanism.The results showed that: firstly, some certainty exists in the multinational corporations' controlling the IJV, and the maximum value of IJV can be realized. Secondly, on the conditions of no stock share restriction, the multinational corporations could acquire the majority of ownership by means of their superiority resources. Thirdly, the longer the joint period is, the higher the technology transmission level is; under a stable expectation of the IJV, the feasibility aggregation of technology transmission are decided by the technology transmission benefit coefficient of IJV and its partner.In accordance with Chinese auto industry, this paper conducted empirical analysis on the relations of the control ways, mechanism and the omni control ability of the multinational corporations in china's motor joint ventures, therefore drew that: firstly, knowledge control is the main way for the multinational corporations' control. Secondly, multinational corporations apply their control by means of the brand, technology, sales and purchasing channels, general manager position mechanism.The innovation is: firstly, the author set up the stock share decision model and the feasibility aggregation of technology transmission by using the game theory, explained the reason, motive for the multinational corporations' superiority positions and the influencing factors of their technology transmission. Secondly, the author noticed the differences of the control ways and mechanism of the multinational corporations in the different industries, furthermore identified the main control mechanisms of the multinational corporations in china's motor joint ventures. To some extend this paper can be reference for the management of joint ventures and the formulation of the motor industry policies.