Study Of The Competitive Advantage Of China's Multinational Enterprises

Constructing competitive advantages is the external demand of transnational operations of Chinese enterprises and it is the necessary selection for the survival and growth of Chinese enterprises in the condition of globalization. More than 20 years have passed since the first Chinese enterprise started its transnational operations. Part Chinese enterprises have made great achievement. But on the whole, Chinese enterprises are short of competitive advantages. So it is a problem of important academic and practical meaning for Chinese enterprises to construct competitive advantages in transnational operations.The paper attempts to discuss the construction of transnational competitive advantages for Chinese enterprises that are short of competitive advantages.Firstly, the paper reviews the history of Chinese enterprises' transnational operations. The paper explores the actuality and characters of Chinese enterprises' transnational operations. The paper summarizes the background of Chinese enterprises' transnational operations. Chinese enterprises' transnational operations are in a condition of quick developing. Chinese enterprises' transnational operations are developed in a condition of globalization and in the background of economic reform. And the enterprises are in the reforming process. The particularities of Chinese enterprises' transnational operations need new theories to explain and direct.Secondly, on the basis of confirming the meaning of competitive advantages and transnational competitive advantages, the paper reviews theories of multinationals and strategic management. Theories of multinationals discuss the categories and contents of transnational competitive advantages. Theories of strategic management discuss the source of competitive advantages. The theories provide reference for the research on the construction of Chinese enterprises' transnational competitive advantages. The paper analyzes the important function ofmanagement model on the construction of transnational competitive advantages and points out selecting a right management model is the important approach for Chinese enterprises to construct transnational competitive advantages.Thirdly, from the aspect of enterprises' resources and capabilities, the paper points our Chinese enterprises are short of transnational competitive advantages. The evidences are: enterprises are small, production and profit margin is low, the ability of R&D is low. The paper analyzes the resources and capabilities Chinese enterprises have. The resources and capabilities include low-cost human resources, mature production technologies, Chinese traditional technologies, products with Chinese characteristics and products manufactured on a small scale. These resources and capabilities are the source of Chinese enterprises' transnational competitive advantages. The conclusion is drawn that it is possible for Chinese enterprises to construct transnational competitive advantages.At last, by studying cases, the paper concludes that selecting a right management model is the important approach for Chinese enterprises to construct transnational competitive advantages. The paper analyzes the successful experience of Chinese enterprises, summarizes three transnational management models and constructs a selection model for an enterprise to choose its transnational management model.Hu Junru (International Trade) Directed by Liang Shengang...