Study On Diversification Strategy Of Multinational Enterprises From A Perspective Of Tacit Knowledge

With the development of economical globalization, large quantities of multinational enterprises are active on the world stage. On the one hand, the diversification strategy is an effective way to development of multinational enterprise, which was brought into effect about 3/4 among the top 500 enterprise in fortune; On the other hand, how to realize the diversification successfully, choose the correct diversification mode of entry, carry on the technology transfer continuously has puzzled the multinational enterprises. With the guidance of the basic view of knowledge, according to the study which results from diversification strategy theory and international technology transfer theory, the correlative issue on selecting and developing mode of diversification strategy was discussed in this thesis.The meaning of tacit knowledge and the elementary property of enterprise tacit knowledge were analyzed in detail at first, then, the inherent essence of multinational enterprise growth which comes from tacit knowledge was analyzed thoroughly. Why did multinational enterprises bring the diversification strategy into effect? From the perspective of tacit knowledge, the inherent kinetic elements were studied. Because of the dynamic economies of scale and the economies of scope, there are surplus abilities in multinational enterprise; at the same time, the tacit knowledge characteristics have created the malfunction of knowledge transaction market. Both aspects urge the multinational enterprise to implement the diversification strategy. Then, the issue on when to diversify was recognized, and the choice of the type of diversification was discussed. The multinational enterprise should implement the correlation diversification strategy on the foundation of the cultivation of core competitive power and the accumulation of massive tacit knowledge.After the determination of diversification direction, the paper examined the entry mode of multinational enterprise's diversification to carry on the thorough discussion. According to the tacit degree of the transfer (absorption) knowledge, the multinational enterprise chose different entry modes such as greenland, strategic alliances and merger to implement diversification. The less codifiable and the harder to teach is the technology, the more likely the transfer will be to wholly owned operations. On the contrary, the less tacit the knowledge is, the more likely it will be transferred by market. The development mode of multinational enterprise is determined by the difficulty of transferring knowledge resulting from the degree of tacitness of technology.This paper applies tacit knowledge to the study on diversification development of multinational enterprise, discussing the influence of tacit knowledge on the diversification development strategy, the internationalization development mode of multinational enterprise. This paper manages to extend the traditional diversification strategy theory and the multinational corporation theory attempt. It has important theoretical significance and practical significance to the development of multinational enterprise especially to the development of our country multinational enterprise.