Theoretical And Empirical Analysis Of New Production Networks And Space Networks Under The Economic Globalization

Economic globalization has brought global liquidity and reasonable allocation of capital, technology and other production elements, further deepening of specialization and the international division of labor has reached an unprecedented new phase. Compared with traditional methods, great changes have taken place in international division of labor. Where, industrial specialization are replaced by intra-product specialization, production and export mainly depending on domestic factors of production develop into a new prospect which some factors of production are gathered in several countries and produced for all the world. Countries complete product development, procurement, production, sales and after-sales service in the form of international cooperation with their comparative advantages which formed a division system of global value chains with continuous development. On the one hand, value fragments widely distributed to various global geospatial. On the other hand, the global value chain doesn't become loose with all the value section vertically disintegrating in the global space. Conversely, the collaboration between the various value sections of the system is getting closer and closer. The status and function of traditional natural resources, capital and labor factor declined, however the role of knowledge and information elements, such as technology, talent, and innovative mechanisms enhanced. Informationization which run throughout the production network and changed the network structure makes it is possible for flow of the global information and coordination of the network. Global production networks begin to form and develop in a pattern differing from the traditional production networks with some new features in each connection of the networks, the horizontal and vertical and other aspects of the networks. In order to enhance core competitiveness under economic globalization and aggravation of market competition, multinational corporations focus on controlling a small number of high value-added core link with relatively competitive advantage in the production network, and low value-added and non-core link which were traditionally done by the enterprise is outsource. For the purpose of optimal allocation of resources, multinational companies set up R&D network, purchasing network, production network and marketing network all over the world. Simultaneously, in order to meet local demand, each network also has localization features evolving localization network of R&D, production and marketing. The diversity makes the network laterally extend and multiple production networks are parallel within a multinational corporation. Various characteristics of production networks produce a variety of economic effect and promote regional industrial cluster. Local industrial networks which are embedded in global production networks achieve industrial upgrade continuously by integration and make a profound impact on the regional economy.Firstly, this paper analyzes the research background from the economic, politics, science and technology and deeply resolves the connotation of production network and space network subsequently, and then analyzes related theoretical foundation including vertical specialization division theory, value chain theory, transaction cost theory, competitive advantage theory and theory of international direct investment location. The third part specifically researches the new features of production network and space network under economic globalization after clarifying the reasons why the features of new production network appear. Through actual investigation into Chinese typical case for multinational companies, Haier, the fourth part summarizes the new features of production network and space network under the economic globalization including small household electrical appliances outsourcing, IT service outsourcing, setting up R&D network, manufacturing network and marketing network in the world and achieving "Trinity" Localization Network in Europe, America and Asia. Space network organization model transforms from the core-periphery model to the multi-center model. Based on the summary of the features, combined with the economic development situation of Haier, this paper analyzed the problems of Haier and finally proposed countermeasures for its development. Local industrial networks of the developing countries should seize the development opportunities of the new production networks and space networks, associate its characteristics, identify the most suitable way to embed into the global value chain actively and eventually upgrade the chain by the upgrading of the product, the process and function. So regional economy develops and local industrial network is integrated continually by the new production networks and space networks. As a typical enterprise in China, Haier could be seen as the representative of multinational companies in developing countries. Other developing countries can draw on the advantages of its development and avoid its shortcomings, achieve the optimal allocation of production factors in the global competition, seize the opportunities of development in global production network, integrate into the global production network actively, complete the integration and upgrading of industry networks and promote the development of regional economic.