| Ownership strategies are one of the most important aspects multinational companies (MNCs) considered when they expand globally. They are very crucial for MNCs to control their overseas operations, investment risk and the resources they committed. Transactional Cost Economics (TCE) theory is perceived as the most accepted perspective to explain how MNCs make decisions on ownership mode when they invest in foreign markets. Based on TCE theory, we listed the elements that influence MNCs ownership mode decisions, and developed a analysis frame to explain how specificity of ownership assets and investment size co-decide the ownership mode of a overseas entity a MNC established.However, ownership mode of an overseas entity of a MNC is decided rather with specificity advantages of the company, the character of a specific investment and the environment of local market than with global strategic motives of the MNC. As to expand scope of our study, we explored the trend of MNCs' strategies in China under a global strategic viewpoint.As a conclusion, we take that MNCs' global strategy come down to two aspects: On one hand, internalizing global market with their subsidiary companies systems; On the other hand, establishing a global operational network with strategic alliances worldwide. |
