The Research Of R&D Management For High Tech MNCS In China

As China's economy has been maintaining a stable and rapid growth, companies from around the globe seek to adapt in and benefit from the most populous nation. Many high tech MNCs realize the importance of establishing R&D centers in China. From establishing manufacture sites in China in early days to more and larger and middle size high tech MNCs to establish R&D centers in recent years, foreign companies want to maintain sustainable growth, want to conquer Chinese consumer market, developing new and innovative products to satisfy huge Chinese market becomes unarguable company's top business strategies. Establishing research and development (R&D) centers in China is becoming a trend for Multi-National Corporations (MNCs). But establishing R&D centers in China, and making sure that R&D activities can generate huge profits for the corporations is not so easy. Even though majority of the MNCs have adopted localization strategies when they are running their R&D centers, they are still facing a lot of unexpected challenges and management problems. Some MNCs even failed the R&D operations in China. How to run a successful R&D centers in China becomes a hot research topic for those MNCs which have established R&D centers and for those MNCs which are planning to setup R&D centers in China.From high tech MNCs'view point, this thesis paper researches and analyzes the new trend for global high tech MNCs to setup R&D centers in China, features of MNCs'R&D centers and the major reasons behind of setup R&D center in China. Based on the research study of the management problems and challenges which Hewlett-Packard Information Technology Research and Development Co. faced in China, this thesis paper explores four key challenges and major management issues which are faced among MNCs during the R&D operation in China: 1) lack of technical competence, 2) lack of teamwork spirit, 3) lack of total quality management, 4) lack of effective communication channel and skills. Based on the detail analysis of the major causes, some winning management strategies and tactical solutions on how MNCs can successfully run R&D centers in China are recommended, including improving the standard of hiring and retaining the best employee, effectively using the knowledge management and the performance management systems to develop and enhance local high tech research and development competence, encouraging team collaboration and teamwork, enforcing quality management system and improving quality process training and execution, emphasizing the training of company culture, the Chinese and foreign culture, and communication skills to improve the effectiveness of communication among employees.