Tnc Subsidiaries In China, The Initial Role-change Factor Analysis

The study focused on the transformation of subsidiary's initial roles in Chinese mainland on the base of the previous research about the roles of subsidiary. From the perspective of the strategic motivation, which lead to the setting up of MNCs 's subsidiary in China, we discuss the factors that influence the transformation of initial roles of subsidiary founded in china. Through the analysis of strategic development mechanism of subsidiary, we bring forward the model of initial roles transformation of subsidiary and find three broad mechanisms are the main factors, which are head-office assignment of roles, subsidiary choice and the host country's environment, then, we deeply analyzed the three broad mechanisms respectively, and make several propositions.At last, we validate them through analyzing the data collected through questionnaires which were filled out by the managers of 62 MNC's subsidiaries in china. The hypotheses were largely supported. The main results we got from this research were as follows:a) The transformation of subsidiary's initial roles was influenced mainly by two factors: head-office assignment and host country's environment. This differs from the research results of subsidiary's roles given by foreign scholars: They believe that subsidiary choice also influences the transformation, except the two factors mentioned above.b) The factor, head-office assignment consists of three elements: integration of subsidiary and headquarter, subsidiary autonomy and strategic values hold by the managers in headquarter.c) The factor, host country's environment, consists of four elements: the entrepreneurship of the employee in subsidiary, the restriction from the host country, the relation between subsidiary and host country and its competition with the companies in host country.