The Research Of FDI Of Chinese Firms And The Improvement In The Technology Capability

Enhancing competitive advantage is the external demand of multinational operating activities of Chinese enterprises and it is the necessary selection for the growth of Chinese enterprises in the condition of globalization. After more than 20 years development, the competitive capabilities of Chinese enterprises have been raised. However, most enterprises are in a fragile situation in the drastic international competition so far. The evidences are: most of them are short of the core technology and are inadequate in trademark advantage. There are new trends that the FDI of Chinese enterprises aim to the R&D genius, institutions and the corresponding knowledge in the developed countries. That enriches the traditional theories about the multinational enterprises in developing countries.The paper discusses how Chinese enterprises improve the capabilities of technology and the competitive advantage by the way of FDI on a framework of management theories.There are five results about this research. First of all, the strict policies of the copyrights of the host maybe a negative factor to the Chinese firms. Secondly, most difficulty obstacle of globalization to the Chinese firms is the high expensive cost .Thirdly, the most attractive factor of that is the possibility of absorbing the overflow of the technology. Fourthly, the strategic position of most of Chinese firms focus on the acquirement of the advance of the knowledge and technology. Finally, in the eyes ' Chinese firms, the advance organization structure is the knowledge-acquisition FDI.The paper is composed of four chapters.Chapter I elaborates the history of the FDI of Chinese companies and defines the concept of Knowledge-acquisition FDI. Then it gives the advice of how to improve the competitive capabilities of Chinese enterprises by the method of Knowledge-acquisition FDI by discussing the cases of Holley Group, Haier Groupand Samsung Electronics Company.Chapter II discusses the theories of the FDI of the domestic and aboard scholarsChapter III defines the model of SEM.Chapter IV analyzes the conclusion of the model. Then, it puts forward the propositions that worth further studying and indicates the originality and deficiency of this paper.The achievements of this paper consist of two points. One is that giving the advices about how to improve the competition capability by using the case about the success of Samsung Electronics Company. On the other hand, it built a model of SEM composed by the influence factors of the knowledge-acquisition of the Chinese firms.